Selling a car then buying new...

[venom]

I know when you trade a car in the used car price knocks down the taxes of the new car. Question is...if you sell a car privately can that price get applied somehow to a new car?

[PaxtonShelby]

Not unless you have a dealer buddy who will run it thru his store. And this only really works when the car you are buying is from the dealer.

[Dan B.]

I bought a truck from a fella like this once. Bought it from the dealer for the agreed on trade in price at the same time he was getting his new truck. He got credit for the trade and I got a good deal.

[venom]

Thanks guys. That's what I thought needed to happen.

[Terminated]

Even if you sell you're used car outright, you use that price as a down payment on the new car and only pay the taxes on the remaining balance.

[venom]

Even if you sell you're used car outright, you use that price as a down payment on the new car and only pay the taxes on the remaining balance.

I didn't think that was the case?

[SonofaBish]

I didn't think that was the case?
You are correct, that's not the case....

If I sell my Rustang privately for $5,000 and upgrade to a Pontiac Fiero for $7,500, i will owe taxes on the entire $7,500.

Only if I trade my Rustang in at a dealer do i get to deduct the trade amount from the value that's taxed. Basically, exactly what was said above

[venom]

right on.

[Terminated]

You are correct, that's not the case....

If I sell my Rustang privately for $5,000 and upgrade to a Pontiac Fiero for $7,500, i will owe taxes on the entire $7,500.

Only if I trade my Rustang in at a dealer do i get to deduct the trade amount from the value that's taxed. Basically, exactly what was said above

Hm, I was unaware of that. Interesting.

[gpfarrell]

Dealers call it a "courtesy trade".