I'm getting tired of paying $400/month for gas for my Grand Cherokee Limited. I think I'm going to purchase something a little more efficient to use as my commuter car (Civic EX-L with nav or Mazda 3 s Grand Touring sedan) and my wife will use the Jeep.
My question is regarding WA sales tax. I have two scenarios...
1) Assume the purchase price of the car is $22,000 and I get $15,000 for a used vehicle trade-in. I'd pay sales tax on the difference of $7,000.
2) Same $22,000 new car but I sell the other vehicle outright for $17,000 (vs trading it in). Can I go to the WA Dept of Revenue and get a sales tax refund such that at the end of the day I pay tax on the $5,000 difference....or....am I stuck with paying tax on the entire amount with no tax credit?
The reason I ask is that in scenario 1 the tax bill would be ~$650 while in scenario 2 the bill is ~$2,000...unless I get a credit for the car I sell outright. With no tax credit, I have little incentive to go thru the hassle of selling outright since I net about the same.
Anyone wanna buy a 2004 Honda Odyssey EX w/ DVD for $17k ?
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Jim
'96 Grand Sport #007
A few mods here and there
Nice try, I wished that would be the case but you will pay tax on the retail amount of the new car with no set off.
I was afraid of that.
We moved here from St. Louis a little less than 2 years ago. In MO, you could bring a bill of sale (seller and buyer each have a notorized copy) and the Dept of Revenue will credit back that portion of your taxes when you license your new vehicle.
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Jim
'96 Grand Sport #007
A few mods here and there
We moved here from St. Louis a little less than 2 years ago. In MO, you could bring a bill of sale (seller and buyer each have a notorized copy) and the Dept of Revenue will credit back that portion of your taxes when you license your new vehicle.
You can do that here when you buy a car out of state where that state has a sales tax. For example, If you go to CA and buy a car from a lot or dealership, you go to DOL with the paperwork and you pay the difference in sales tax based on where you live.
If you buy from a private party out of state, you wouldn't be registering the car in that state so there would be no out-of-state sales tax. Get back home and DOL will hit you for the full amount of Use Tax based on the bill of sale. If they think it's way off, the tax will be based on their valuation tables unless you get the seller to sign a purchase price delaration.
You get tax credit for either the car you sell or trade in .
We traded in our 06 2WD Tahoe in Nov for an 08 4WD Tahoe and the dealer bought our 03 Vette outright. We were given tax credit for both vehicles and didnt have to pay any tax on the new Tahoe.
I'm getting tired of paying $400/month for gas for my Grand Cherokee Limited. I think I'm going to purchase something a little more efficient to use as my commuter car (Civic EX-L with nav or Mazda 3 s Grand Touring sedan) and my wife will use the Jeep.
My question is regarding WA sales tax. I have two scenarios...
1) Assume the purchase price of the car is $22,000 and I get $15,000 for a used vehicle trade-in. I'd pay sales tax on the difference of $7,000.
2) Same $22,000 new car but I sell the other vehicle outright for $17,000 (vs trading it in). Can I go to the WA Dept of Revenue and get a sales tax refund such that at the end of the day I pay tax on the $5,000 difference....or....am I stuck with paying tax on the entire amount with no tax credit?
The reason I ask is that in scenario 1 the tax bill would be ~$650 while in scenario 2 the bill is ~$2,000...unless I get a credit for the car I sell outright. With no tax credit, I have little incentive to go thru the hassle of selling outright since I net about the same.
Anyone wanna buy a 2004 Honda Odyssey EX w/ DVD for $17k ?
What kind of gas mileage does your 2004 Honda Odyssey EX get? If you are going to let your wife use the jeep, wht don't you use the Odyssey?
What kind of gas mileage does your 2004 Honda Odyssey EX get? If you are going to let your wife use the jeep, wht don't you use the Odyssey?
I've been thinking about that too. The Odyssey gets around 24mpg, so it'd save me $100/month compared to the Jeep. Civic coupe and Mazda 3 sedan each save around $200.
Then there's just the whole issue of driving the bus (Odyssey) everyday...
__________________
Jim
'96 Grand Sport #007
A few mods here and there
You get tax credit for either the car you sell or trade in .
We traded in our 06 2WD Tahoe in Nov for an 08 4WD Tahoe and the dealer bought our 03 Vette outright. We were given tax credit for both vehicles and didnt have to pay any tax on the new Tahoe.
Looks like if it's sold to a dealership in some capacity you get the tax credit. If I sell to an individual, I won't get a credit.
Tax laws...
__________________
Jim
'96 Grand Sport #007
A few mods here and there
Listen you could just have large pics of your beautiful grand sport made into graphics that you could have affixed to the sides of the Odyssey with signs that say ......... "this is my other car"
Corvette Store
WA Sales Tax question on car purchase
?
and makes for a perfect DD.
JOE
