No Dealer Markup For those that purchased a Stinger out of state, and had a trade tax credit...

[cnaf]

This is new to me. The state I will register my Stinger in (VA) does not have a trade tax credit. This means, the tax applied is based on the price of the new car. The state I'm looking to purchase my Stinger from (PA) has what is known as a trade tax credit- say the Stinger costs 40K, and you have a 20K trade-in, you are taxed at your state rate on the 20K balance, not the 40K car cost. So this saves you some money.

My question is, when you get back to your state and register for tags- are you going to have to pay taxes on the other half of the new car? Is DMV going to tell me I didn't pay enough in taxes and request the balance? I cannot seem to find out the answer to this anywhere. all I have is the dealer that's trying to sell me the car telling me I'm saving money. Thanks in advance to anyone that can enlighten me.

 

[JSolo]

Good question. Does the selling dealer handle all the paperwork (part of their doc fee), including that for your state?

I recall inquiring about buying a car from a WI dealership. The salesperson told me their system handles all the paperwork/taxes/etc based on the locale of where the car is registered. I should not have to deal with the dmv at all. Truth or not, not sure as I didn't buy the car from them.

The bike on the left was bought from a different county than my own (dupage vs crook). I can't recall if it was a 1% county tax difference or some other tax, but about 10 months after I get a bill from crook demanding their pound of flesh.

ymmv