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Smart Shopper Vehicle Sales Tax Questions
947 messages, Last post on Nov 23, 2009 at 10:05 AM
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You're welcome, hilbert. Car_man Host Smart Shopper Message Board |
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Hi all, great info here. (Even if a bit tough to negotiate at times  ) Anyway, I have a question for you car buying experts! I live in NC and am reworking my contract with my company. As part of the new contract I am switching from a company vehicle to a car allowance. The company is going to essentially give me my current vehicle to use as a down-payment. It is a '01 Hyundai XG300 with 63000 miles in good condition. I figure it will bring in the neighborhood of $7,000 as a down payment. Here is where things get tricky. Do I: A) Buy the car from the company for $1.00 (consideration) and pay the tax on Bluebook or however they come up with it? The problem here is, I am paying tax to just roll the car over into a down payment anyway... seems to me there is a better way. B) I could buy the car for $4000.00 or so (but not actually pay - CFO stuff) and pay tax on less than bluebook. Still paying tax here to just roll it over into a DP. C)Is there a way for my company to sign the vehicle over to the dealer as my down payment? Would this have income tax implications? Note* I think there may be some way to recalim taxes if you buy/sell a vehicle within a certain time frame. IE I buy the vehicle for X and pay 3% of X in tax. Than I turn vehicle over into a down payment and get the 3% back from the State. Can anyone please steer me in the right direction? Thanks much in advance! G. |
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Okay this might be a dumb question but, when leasing a car- I understand that I should negotiate the purchase price first, then the leasing details. My question is, does the dealer add tax to the purchase price OR the monthly payments? I hope not both! Thanks!
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That's not a silly question at all, enya18. Different states use different methods for calculating sales tax on leased vehicles. There are three main methods of doing so (I suppose that you could say that there are four if you count the states that don't charge sales tax at all). In the first, the state taxes the payment and down payment. Most states, including Florida, Georgia, Missouri, Connecticut, and California use this method. The second way is to tax the entire selling price of the vehicle. This is how sales tax is calculated on leases in states like Illinois, Texas, and now Ohio. Lastly, some states only tax the depreciation portion of leases. This is tax is calculated on leased vehicles in New Jersey. If you let me know what state you are in, I would be more than happy to try to give you an idea of how sales tax is calculated on leased vehicles there. Car_man Host Smart Shopper Message Board
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Replying to: Car_man (Oct 18, 2004 2:58 am) |
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You're welcome, enya18. I believe that Florida charges sales tax on the payment and down payment of leased vehicles, rather than based upon the vehicle's price like it is done in many other states. You may be able to find out more informaiton on this subject by visiting one of the following Web sites: Florida Department of Highway Safety & Motor Vehicles or MyFlorida.com - Taxes. Car_man Host Smart Shopper Message Board
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Well, it's not exactly an overseas delivery, but an expat or international delivery meaning I purchased a new US Spec car in Europe, and will drive it there for 5 months, then Volvo will ship it to a dealer in PA. When I register it, I will have to pay 6% sales tax. My question is, on what amount? Is it considered a used car? Or do I pay the tax on my actual purchase price or on a typical US price if purchased in the US? Thanks for your help.
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Replying to: scooterz (Oct 22, 2004 1:52 am) Terry.
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I am considering assuming someone's lease on an Infiniti G35 Coupe. Can someone tell me if I will have to pay sales tax on the remaining lease amount when I register the car in my name? I live in NY state. I am thinking I won't since the tax has already been payed and I am just taking over the lease. Just want to be sure. Any thoughts?
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Replying to: CRJ (Oct 22, 2004 3:25 pm) Terry.
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