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2010 2011 BMW 5 Series Forum F10 BMW 5-Series (F10) Forums General 5-Series Sedan and Wagon (F10 / F11) Forum Selling vehicle
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      11-30-2012, 02:21 PM   #1
terianx
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Selling vehicle

I was wondering, when you sell your vehicle to the dealer, do you get tax credit for the amount you sell it for? Do you have to buy a vehicle in when trading in your vehicle?

Ex; let's say you sell your vehicle for xxx amount of dollars, do you get tax back from the dealer for that amount? Or does that only applies to tradein?
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      11-30-2012, 03:28 PM   #2
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Here is how it works.

1) If you only sell your car to a dealer you get the money for the car and no tax (refund I assume)

2) If you trade it in and buy a new car from the same dealer at the same time, the tax on the new car will only be applicable to the difference between the new car price and the trade in.

Not sure why you would do 1), but I guess people take their car to CarMax
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      11-30-2012, 04:33 PM   #3
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What if I'm trading in a purchased vehicle for a leased vehicle? Do I get a credit for the taxes I already paid on the purchase towards the lease? Or will the taxes be refunded? Or do I lose all the money that I paid in taxes and I have to pay taxes on the new lease just the same as I would have had to anyway...
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      11-30-2012, 10:20 PM   #4
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Quote:
Originally Posted by marsb007 View Post
What if I'm trading in a purchased vehicle for a leased vehicle? Do I get a credit for the taxes I already paid on the purchase towards the lease? Or will the taxes be refunded? Or do I lose all the money that I paid in taxes and I have to pay taxes on the new lease just the same as I would have had to anyway...
Taxes are never refunded. It would go to the taxes charged on the new vehicle.

You don't specify your state, but different states do things differently. In CA, I don't think you can use the sales tax credit via trade it, at all.
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      11-30-2012, 10:29 PM   #5
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This varies state to state.
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      11-30-2012, 11:08 PM   #6
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I'm in Florida... my 535i is still in port in Bremerhaven...
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      12-01-2012, 11:13 AM   #7
terianx
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Quote:
Originally Posted by BigKutta
Here is how it works.

1) If you only sell your car to a dealer you get the money for the car and no tax (refund I assume)

2) If you trade it in and buy a new car from the same dealer at the same time, the tax on the new car will only be applicable to the difference between the new car price and the trade in.

Not sure why you would do 1), but I guess people take their car to CarMax
I heard if you tradein is more than the new vehicle you're buying, you don't pay any tax, is that true?
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      12-03-2012, 05:49 PM   #8
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I heard if you tradein is more than the new vehicle you're buying, you don't pay any tax, is that true?
True
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