The same economics would say they’ll loose 5k if they don’t get the traded car.
Either way I’m good, if they give me market value, great. They lowball like crazy, sell to others that offer market. If below market value but tax savings cover the difference I’m still good.
Maybe, but they know the game better than the average buyer and the tax credit makes their channel more advantageous to the average car buyer. And they can extract the majority of the benefit, that’s all I’m saying. I’m not saying don’t do it. Heck I’d do it. But I’d know that I saved $100 in the end not the $1,000 the tax savings purported to save said buyer. But $100 is still more then $0 and that’s the reality of it.
Anybody know if sales tax credit is on trade in value or equity of trade in? NY
Are you referring to a leased vehicle being traded in?
No financed vehicle being traded in. X amount payoff. Y amount equity. Z amount trade in offer. What’s going to be applied as sales tax credit in NY? Thanks
Trade-in value.
In your equation, that would be Z
Exactly my opinion but dealer in MD is swearing that its only the equity portion Y unless I payoff the rest of the loan too. Smh
car price 50k
trade in value 30k
taxed on 50-30 = 20
payoff has nothing to do with it
I ran into an Audi dealer in NJ whom also enforced tax law in this manner, claiming I could only reduce my taxable balance by the equity position I held in the financed vehicle. I went to another Audi dealer, in the next town over, who gave m the full trade-in value reduction. Who was right and who was wrong… I’m not an accountant, but getting a dealer to change policy is an uphill battle. The easiest way to solve this maybe to calculate the lost “tax savings” and ask for it as an additional discount.
Unfortunately the car that i got the deal lined up on is unattainable at any other dealer 
They even show the breakdown of the ATC runner service tax calculations and where it says trade in value, they add trade in allowance 
Exactly what i was explaining to the dude but he gives me an extended warranty analogy that you’d get a prorated refund if you canceled early
If I’m reading this correctly (and I read the thread twice and your posts specifically three times): you live in NY, you’re doing a deal with a MD dealer, you’re talking to your sales person, and expecting them to understand how the trade-in affects your sales tax 4 states away??
I don’t know that I would even expect the F&I manager at an out of state dealer to know the rules beyond the adjacent state. And I doubt whomever you spoke with ran this by their tag and title clerk to try and get the real answer.
Definitely do the math, I might fib “I recently did this…” and have them ask their tag and title. If it’s a material amount, I’d push them on a corresponding discount.
It was a 5 hr ordeal, he asked GSM, GM and other dealers and still im wrong lmao
Apparently deal was today only haha. Will find out on Monday if I can still go pickup. We’ll see…
At many dealerships, T&T work banker’s hours Mon-Fri. Possible the right person (or the one with the ability to figure it out) wasn’t there today.
In the Nys tax guide it clearly states it’s on the trade value not the equity. I’ll try to add link when I get a few min
Ok, so ask him to put in writing that you will get a prorated tax refund from NY, and if you don’t, the dealer will pay it to you instead.
Thats where it gets tricky. Dealer just gonna put the equity as trade in value so. NYS is none the wiser
