I am considering buying a used 2003 g35 coupe 6mt from a private seller. I have to register the car in NY or CA (home in Irvine, CA, school at West Point, NY), and the sales tax rate of about 8% makes tax an issue. Is there any tax benefit from buying a used car as opposed to buying a new one? Thanks for the help.

 

You will pay tales tax on the purchase price of the car whether it is new or used. Assuming you pay less for a used car, you will end up paying porportionally less tax. If you trade in at a dealership, in some states you may be able to deduct the value of the trade-in from the pruchase price in figuring out the sales tax, but that is not allowed in CA.

Dr. Jim
2003 DesertPlatinum G35C 6MT/Aero/Prem/Nav/HyperGround/XMSat/BSM/Tint/ClearBra/CG
2001 Acura MDX/Touring/Nav
1997 Mercedes Benx E320/Eibach Springs+Dampers/OZ Racing Superleggera Wheels

 

A trade in does reduce your tax. It is the diff between what the dealer gives you for your car and the purchase price on the new/used one.

2003.5 G35C BL/GR, NAV, PREM, AERO, TINT, SPORT, Splash, V1

 

Make sure you find out what the tax rate is for vehicles - it's not always the same. For example, in San Antonio the sales tax is about 8% but only 6.25% for vehicles.

 

If you are paying cash to a private seller and you have the title in hand, it is your responsibility to report what you've paid for the car at the time of getting the new title in your name. Just put in an amount that will not cause them to red-flag it, this way your tax exposure is less. If you paid $30k for the car, tell DMV that you paid $22k or whatever you feel, if they ask how you got it so cheap, say it was damaged or has a blown engine, etc.

JD
2003.5 Coupe, Blk/Blk

 

Just make sure the stated sales price is very close to the car's book value or you WILL create a red flag.

 

I don't know if different states have differnt laws or not, but you could always say it was a gift. Thats what I did with my last car and the lady at the DMV put it down for one dollar. I'm guessing nobody ever caught on because they never asked me to pay the taxes.

 

if you are taking over the loan, you can use that as the sales cost.

i have known of someone avoiding tax by saying the car was a gift from a step-parent. parents are considered "relatives" where uncles and cousins aren't. using step parent explains different last name.

04 6mtC, DG - possibly most babied G on the board.

 

depends on the state
Like G35MD said, in California you pay sales tax on the whole amount, whether purchased from private or dealer

Don't know about new york.

Here in Georgia, if you trade in, you only pay sales tax on the difference between the old and new cars, and if you buy from a private party, you pay no sales tax at all.

2003 350Z & 2003 G35c
www.350zfrenzy.com
www.g35frenzy.com