tax on trade in

[tsmdvl3]

dealer in Michigan says only half the value of trade in goes to reducing sales tax. Anyone heard of this?:chat:

[ARtraveler]

dealer in Michigan says only half the value of trade in goes to reducing sales tax. Anyone heard of this?:chat:

I am thinking the dealer is playing numbers games with you. Read your contract very, very, carefully.

[GearHd]

All the equity you have in the trade in goes toward reducing taxes. If you still owe money on the trade in then that amount doesn't count toward the taxes.

[tsmdvl3]

my trade in is paid off. this does sound right!

[lwrydr]

In my state (WA) tax is only paid on the difference between the price of the vehicle and the trade in amount. Sounds like they might be trying to pull a fast one.

[tsmdvl3]

this does not sound correct to me! salesman said his "financial people" told him this.

[k3232668]

What are you looking at buying? Also what dealer are you working with?

[bscrive]

The dealer is trying to swindle you out of some money. nojoke I would go elsewhere.

[GearHd]

If the deal seems fair I'd call them out on it. Maybe someone just has no clue what they're doing, wouldn't be the first time.

[tsmdvl3]

trying to buy a f3s sm 6. the dealer is leaders marine, I got my 2011rs from them. that spyder has been great, just wanting to upgrade to a better riding position and cruise control!

[cuznjohn]

the price of the trade is reduced form the taxable amount

[tsmdvl3]

for taxes they are only using half the trade value, so my taxes are higher!

[Dan McNally]

Ask your state's attorney general's office and ask them what your state law says . . . and if the entire amount should be credited toward tax liability, then have another discussion with the dealer . . . and perhaps file a complaint with the state AG

http://www.michigan.gov/ag/0,4534,7-164-21153-51368--,00.html

[BLUEKNIGHT911]

Ask your state's attorney general's office and ask them what your state law says . . . and if the entire amount should be credited toward tax liability, then have another discussion with the dealer . . . and perhaps file a complaint with the state AG

http://www.michigan.gov/ag/0,4534,7-164-21153-51368--,00.html
IMHO....forget the SAG.( they are busy with criminal matters )....and ask your Dept. of Motor Veh's they know what you can deduct from from what you will have to pay a New Purchase.....Mike

[IdahoMtnSpyder]

dealer in Michigan says only half the value of trade in goes to reducing sales tax. Anyone heard of this?:chat:
You guys in Michigan are screwed.


Trade-in Allowance. Effective January 1, 2015 through December 31, 2015 motor vehicles and recreational vehicles
traded in to dealers towards the purchase of a new or used motor vehicle or recreational vehicle receive a credit of the tradein
vehicle’s value or $2,500, whichever is lower. This is subtracted from the purchase price of the new vehicle.

Your dealer is wrong. It's not 50% of the trade-in value, it's the trade-in value up to a max of $2500.

Check these out.

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CB8QFjAA&url=https%3A%2F%2Fwww.michigan.gov%2Fdocuments%2F4 85_72279_7.pdf&ei=GfJjVdupA4OsyQSM8IHgBQ&usg=AFQjCNF64zcbpUQh-MvGRxASuHStO8qs-g&sig2=0OHgNOTfoGLBrjwv3rD-ow&bvm=bv.93990622,d.aWw


https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0CCcQFjAB&url=https%3A%2F%2Fwww.michigan.gov%2Fdocuments%2Fs os%2FPA_159__160_of_2013_Announcement_442197_7.pdf&ei=GfJjVdupA4OsyQSM8IHgBQ&usg=AFQjCNEnZyg2E9W_yx-peYxupoZA5tInNw&sig2=2AqA58Id4LzvZTuI1t0NLg&bvm=bv.93990622,d.aWw

[Spyder in La.]

IMHO....forget the SAG.( they are busy with criminal matters )....and ask your Dept. of Motor Veh's they know what you can deduct from from what you will have to pay a New Purchase.....Mike
The above.... Also, as long as the full value of your trade is recorded on the bill of sale, either the finance people will catch it or it will be rejected by DMV (dept of motor vehicle ).
The salesman may be new or simply lacks understanding the financial end .
100% of your lifelines are in agreement. It's your call.

[Spyder in La.]

You guys in Michigan are screwed.



Your dealer is wrong. It's not 50% of the trade-in value, it's the trade-in value up to a max of $2500.

....

Check these out.

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CB8QFjAA&url=https%3A%2F%2Fwww.michigan.gov%2Fdocuments%2F4 85_72279_7.pdf&ei=GfJjVdupA4OsyQSM8IHgBQ&usg=AFQjCNF64zcbpUQh-MvGRxASuHStO8qs-g&sig2=0OHgNOTfoGLBrjwv3rD-ow&bvm=bv.93990622,d.aWw


https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0CCcQFjAB&url=https%3A%2F%2Fwww.michigan.gov%2Fdocuments%2Fs os%2FPA_159__160_of_2013_Announcement_442197_7.pdf&ei=GfJjVdupA4OsyQSM8IHgBQ&usg=AFQjCNEnZyg2E9W_yx-peYxupoZA5tInNw&sig2=2AqA58Id4LzvZTuI1t0NLg&bvm=bv.93990622,d.aWw

Yelp, you're screwed..... I guess Michigan is as broke as Louisiana. :yikes:

[Bob Denman]

The Moral of this Story: :lecturef_smilie: Know your State's laws about this sort of thing. Mike is correct; call your DMV office, and ask them about it. :thumbup:

[Dan McNally]

IMHO....forget the SAG.( they are busy with criminal matters )....and ask your Dept. of Motor Veh's they know what you can deduct from from what you will have to pay a New Purchase.....Mike

Virtually every state Attorney General's office has people who work nothing but consumer affairs issues . . . why wouldn't someone ask them to do their job?

[Bob Denman]

Actually, posing the question to the DMV, and getting the truth from them; would be more expedient...:thumbup:

[SPECTACUALR SPIDERMAN]

In my state (WA) tax is only paid on the difference between the price of the vehicle and the trade in amount. Sounds like they might be trying to pull a fast one.

same for NY

[wyliec]

You guys in Michigan are screwed.



Your dealer is wrong. It's not 50% of the trade-in value, it's the trade-in value up to a max of $2500.

Check these out.

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CB8QFjAA&url=https%3A%2F%2Fwww.michigan.gov%2Fdocuments%2F4 85_72279_7.pdf&ei=GfJjVdupA4OsyQSM8IHgBQ&usg=AFQjCNF64zcbpUQh-MvGRxASuHStO8qs-g&sig2=0OHgNOTfoGLBrjwv3rD-ow&bvm=bv.93990622,d.aWw


https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0CCcQFjAB&url=https%3A%2F%2Fwww.michigan.gov%2Fdocuments%2Fs os%2FPA_159__160_of_2013_Announcement_442197_7.pdf&ei=GfJjVdupA4OsyQSM8IHgBQ&usg=AFQjCNEnZyg2E9W_yx-peYxupoZA5tInNw&sig2=2AqA58Id4LzvZTuI1t0NLg&bvm=bv.93990622,d.aWw

Sounds to me that the OP was getting a better deal on the sales tax from his dealer. If I were the OP, I'd take the deal, all else being equal.

[BLUEKNIGHT911]

Virtually every state Attorney General's office has people who work nothing but consumer affairs issues . . . why wouldn't someone ask them to do their job?

The key word here is " VIRTUALLY ", and at the SAG's office I'll bet they have LOOK it up, to get the answer.......I don't know of any State that Doesn't have a Motor Veh office.......................and Yes you are welcome .......Mike :thumbup:

[jwulf74]

I would recommend nor letting the dealer pay the taxes or anything on your behalf. Go down and pay them direct. Here we have to do it through the country treasurer (even though it is a state tax). Here we only pay on the difference between the purchase price and the trade in.

[IdahoMtnSpyder]

Paying tax on the difference is probably the most common approach for those states that have a ST, but from what I read Michigan just in 2013 started allowing any deduction. They were concerned about the loss in ST revenue and the 2013 law had a 25 year phase in period with annual increases until they reach a max of $14000 allowance. Can you see what $14000 in 25 years compares to today? Like I said, those guys up there are screwed. Apparently they are shortening the phase in, but still, I feel for them.

[wiredgeorge]

dealer in Michigan says only half the value of trade in goes to reducing sales tax. Anyone heard of this?:chat:

I would take care in listening to advice from folks who don't live in your state. In Texas, we have a county tax office to call with this type question. If you find the dealer is lying, I would report him to the appropriate state office and find another dealer. If he is telling the truth, move to Texas where the vehicle tax is paid on the difference between purchase price of the new vehicle and trade in.

[Oldmanzues]

Ohio is the difference right now, but I hear they are trying to change to full price on the new one.
I might suggest calling a car dealer to see what they say. would not be legally binding but information'
Oldmanzues

[Bob Denman]

I would take care in listening to advice from folks who don't live in your state. In Texas, we have a county tax office to call with this type question. If you find the dealer is lying, I would report him to the appropriate state office and find another dealer. If he is telling the truth, move to Texas where the vehicle tax is paid on the difference between purchase price of the new vehicle and trade in.

:agree:
That's why I said...

"The Moral of this Story: :lecturef_smilie: Know your State's laws about this sort of thing. Mike is correct; call your DMV office, and ask them about it. "

[tsmdvl3]

thanks everyone for your help. got it worked out! hopefully this Thursday Ill be on a new F3s. thanks

[tsmdvl3]

thanks everyone for the help! I think I got it worked out. Hopefully this Thursday Ill be on a new F3s

[k3232668]

Glad you got it worked out. Thursday is supposed to be nice weather, only day this week with out rain/storms.

[IdahoMtnSpyder]

thanks everyone for your help. got it worked out! hopefully this Thursday Ill be on a new F3s. thanks
What was the end result re: the sales tax?

[Bob Denman]

thanks everyone for the help! I think I got it worked out. Hopefully this Thursday Ill be on a new F3s

:D :congrats: :thumbup:
The best of luck with your new ride! :cheers:

[tsmdvl3]

michigan tax was paid on the price of the new vehicle regardless of trade in. the law was changed a couple of years ago to allow trade in value to be subtracted from price of new vehicle before tax are calculated. the change is gradual so each year 500.00 is added to trade.

[2ndChildhood]

michigan tax was paid on the price of the new vehicle regardless of trade in. the law was changed a couple of years ago to allow trade in value to be subtracted from price of new vehicle before tax are calculated. the change is gradual so each year 500.00 is added to trade.

I was pleasantly surprised I got $150 back because of the trade-in calculation.


ToM
SpyderFest '16

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