Quote:
Originally Posted by schmidtj
Remember, selling a car outright versus trading it in on a new vehicle results in a substantial SALES TAX penalty. In my state the sales tax is computer AFTER the trade-in is subtracted. Sell the car yourself and you pay sales tax on the entire cost of the new vehicle. Using 8% as an example ...
8% of 24,000 is $2020. So unless you can sell the used car for $2K more than $24K you are loosing by not trading it in.
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That's not true here in Virginia. The sales tax you pay on a car purchase is the same, regardless of whether you trade in a vehicle or sell it outright. So I'd say rather than remembering anything, make sure you understand the tax implications in your locale, and factor that into the decision.
