FivePoint7z28
Club Member
I know when you trade in a car to the dealership you dont have to pay taxes on that much of the purchase price of the new car. But when you put money down on a car, do you have to pay taxes on that? Thanks!
Buying a car from a dealership
- Thread starter FivePoint7z28
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dave89iroc
Club Member
yes on the money down, as it is a DOWNPAYMENT on the total price
a trade in lowers the price
for sake of explanaition, say a car was priced at $30,000, then, a trade in valued at $2,000 lowers the cost to $28,000, so now, the cost you will pay is $28k, now, the downpayment is $5k lets say, you will only need a loan to cover the $23k +taxes on the entire $28k
a trade in lowers the price
for sake of explanaition, say a car was priced at $30,000, then, a trade in valued at $2,000 lowers the cost to $28,000, so now, the cost you will pay is $28k, now, the downpayment is $5k lets say, you will only need a loan to cover the $23k +taxes on the entire $28k
FivePoint7z28
Club Member
Cool. Thanks for clearing that up for me. I thought you would, but wasnt sure. Thanks!
