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Discussion Starter · #1 ·
When paying sales tax on a new car do you subtract the cash down from purchase price. Say the car is $30,000 and I pay $5000 down, do I pay taxes on 30,000 or on $25,000? I was reading about "total Consideration" given for motor vehicle and I'm a bit confused. :help:
 

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You can do some searching on internet for your state, but most allow an exemption on traded vehicle. Therefore one usually pays tax on trade difference.
 

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Stacy said:
When paying sales tax on a new car do you subtract the cash down from purchase price. Say the car is $30,000 and I pay $5000 down, do I pay taxes on 30,000 or on $25,000? I was reading about "total Consideration" given for motor vehicle and I'm a bit confused. :help:
In NY, when you trade in a vehicle, you only pay tax on the difference (new car's cost - trade in amount), and the amount that you pay in cash has no bearing on your tax bill.
 

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If you mean that you're paying down $5000 cash, yes, you still get taxed on that, to my knowledge. You get taxed on the total purchase price, regardless of how you pay for it. The only thing you don't pay tax on is the trade-in value (depending on state, probably), because technically, it's like the dealer is buying that car from YOU.
 

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Discussion Starter · #6 ·
Thanks all. I guess it wishful thinking on my part.
 

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SlayerX11 said:
remind me do rebates come off after or before tax? I live in NY state as well
Come on - how long have you lived in NY ? Do you really think that NY would miss an opportunity to get some of your tax money ? :banghead:

We get taxed on the rebate in NY, unfortunately.
 
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