Date registered: Jan 2005
Vehicle: '91 420 SEL, '80 240D, '87 560 SL, '93 190E Sportline, '70 300 SEL 6.3
Location: SW Florida
Mentioned: 4 Post(s)
Quoted: 36 Post(s)
Price of new car = $50,000
Less trade in - 34,000
Difference = 16,000
7% sales tax = 1,120
Total = 17,120
In the above example, at a car dealership, you are paying tax on the difference, or 16,000 amount. With no trade in, you are paying tax on just the purchase of 50,000. So, the sale tax would be 3,500 (7% X 50,000). In other words, by trading in your car, you would pay sales tax of 1120 versus 3500, or a savings to you of 2300.
If you calculate your state sales tax X your trade in amount of 34,000, = $2,380. So, in effect, you're getting 36,380 for your trade. Carmax, or some other buyer, would have to give you that amount for you to break even.
If you are buying from a private party, this does not apply!
Looks like the farthest east Carmax goes is Baltimore. Maybe you can give them a call.
Last edited by roncor; 08-08-2008 at 03:28 PM.