Question on sales taxes when puchasing vehicle from a dealership

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doospunk

Active member
It seems that sales tax gets applied to the agreed upon purchase price of the vehicle, but can it be calculated on the cost of the vehicle after your trade-in equity has been applied. So for example. If the dealer and I agree upon a purchase price of 20000, and I've got 9k in trade in equity, would sales tax apply to $11,000 or $20,000? If applied to the higher, how many of you have been succesful negotiating the lower (or can it be done?)
 
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Deleted member 10829

Guest
I'm assuming you are in MN? If so, you pay sales tax on the trade difference, or in your example, $11,000.
 
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chadlyt

Member
In MN, that is correct. But only on trade. A down payment on a vehicle doesn't get you anywhere, at least for my last truck purchase.
 
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Deleted member 10829

Guest
Yep, only on a trade. Otherwise, people that paid cash would get by without paying any tax.
 
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scott_b

Member
The credit for the sales tax isn't just on the equity you have in the vehicle, it is on the entire trade value. Example if you owed $2k and they gave you $11k on trade for the $20k vehicle, you would pay tax on $9k...
 
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Deleted member 10829

Guest
If there is a rebate, just ask the dealer to do "rebate to dealer" and you just sign it over to them and they reduce the sales price accordingly. At least that's how we did it during my first career at Boyer Trucks in Minneapolis. I'm guessing it's the same today though.
 
scottiking

scottiking

Well-known member
Ya pick me up Wed in a new truck! saweet! If you buy in another state you would pay tax to Mn and the trade money is taxed only on the difference minus the money they show on trade for the new one!

I have a Dodge connection if ya wanna jump GM ship!
Scottiking OUT



doospunk said:
It seems that sales tax gets applied to the agreed upon purchase price of the vehicle, but can it be calculated on the cost of the vehicle after your trade-in equity has been applied. So for example. If the dealer and I agree upon a purchase price of 20000, and I've got 9k in trade in equity, would sales tax apply to $11,000 or $20,000? If applied to the higher, how many of you have been succesful negotiating the lower (or can it be done?)
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D

doospunk

Active member
scottiking said:
Ya pick me up Wed in a new truck! saweet! If you buy in another state you would pay tax to Mn and the trade money is taxed only on the difference minus the money they show on trade for the new one!

I have a Dodge connection if ya wanna jump GM ship!
Scottiking OUT[/QUOTEu

Truck sold. Missed out on the good deal. What do you mean "pick u up?" It's your turn to come my way!!!! Avy is willing and able!!
Click to expand...
 
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