Used Cars For Sale Master Thread

[zalman2bis]

Not sure if this is the right thread.

I tried reading online, but it's very confusing.

If I sell my car (let's say to CarMax, or private party), do I recover the sales tax (that I paid originally) on the price amount I'm selling it for?

Let's say I bought it for 40k and sell it for 30k, do I get back the taxes on 30k.

And if yes, how do I claim them? And does it make a difference how much taxes I pay or get refunded each year?

If someone can direct me to a simple English explanation, or explain it here please. TIA.

[Realshlomo]

Not sure if this is the right thread.

I tried reading online, but it's very confusing.

If I sell my car (let's say to CarMax, or private party), do I recover the sales tax (that I paid originally) on the price amount I'm selling it for?

Let's say I bought it for 40k and sell it for 30k, do I get back the taxes on 30k.

And if yes, how do I claim them? And does it make a difference how much taxes I pay or get refunded each year?

If someone can direct me to a simple English explanation, or explain it here please. TIA.

Which state is going to refund sales tax??

[zalman2bis]

Which state is going to refund sales tax??

I have no idea. I'm talking about NY.

Why should any state take sales tax on the same item more than once?

When the distributor buys an item from the manufacturer they pay sales tax? And then again the store? And then again the consumer? 3 times on the same item?

[yelped]

I have no idea. I'm talking about NY.

Why should any state take sales tax on the same item more than once?

When the distributor buys an item from the manufacturer they pay sales tax? And then again the store? And then again the consumer? 3 times on the same item?

Unless you're a registered reseller, exactly that. Sorry to break it to you.

[zalman2bis]

Unless you're a registered reseller, exactly that. Sorry to break it to you.

Wow. Learn new things every day.

Thought on big item like a car everyone is a "reseller". Nunu.
But If I trade in the car, then they let me off on those taxes. Correct? Mai taima?

[yelped]

Wow. Learn new things every day.

Thought on big item like a car everyone is a "reseller". Nunu.
But If I trade in the car, then they let me off on those taxes. Correct? Mai taima?

You don't pay sales tax on selling the car, the buyer does.

[zalman2bis]

You missed my point.

If I trade in my car to pay for a new one, suddenly my taxes from the first sale cover the second one, and I'm exempt from the sales tax on the value of my trade in. Correct? Mai taima?

Also as a side point, there's a reason registered resellers are exempt. There's no reason sale tax should be paid on the same item a bunch of times. Wondering why it was never lobbied to apply by big ticket items that are often resold, like cars. One time, and enough.

[Realshlomo]

You missed my point.

If I trade in my car to pay for a new one, suddenly my taxes from the first sale cover the second one, and I'm exempt from the sales tax on the value of my trade in. Correct? Mai taima?

Also as a side point, there's a reason registered resellers are exempt. There's no reason sale tax should be paid on the same item a bunch of times. Wondering why it was never lobbied to apply by big ticket items that are often resold, like cars. One time, and enough.

You're missing the point of a trade in. A trade in makes your new sale amount less. As in it decreases your new purchase price, hence you save on sales tax on the new lower purchase price.

[baron]

You missed my point.

If I trade in my car to pay for a new one, suddenly my taxes from the first sale cover the second one, and I'm exempt from the sales tax on the value of my trade in. Correct? Mai taima?

Also as a side point, there's a reason registered resellers are exempt. There's no reason sale tax should be paid on the same item a bunch of times. Wondering why it was never lobbied to apply by big ticket items that are often resold, like cars. One time, and enough.

It isn’t the first tax covering the 2nd. Why would 1 sale’s tax cover a 2nd one? Why can’t sales tax be paid many times on the same item by different people? Reseller there’s only 1 consumer. Private people don’t lobby for themselves.

You're missing the point of a trade in. A trade in makes your new sale amount less. As in it decreases your new purchase price, hence you save on sales tax on the new lower purchase price.

+1

[zalman2bis]

You're missing the point of a trade in. A trade in makes your new sale amount less. As in it decreases your new purchase price, hence you save on sales tax on the new lower purchase price.

I understood that. But I'm still buying it at full price just paying with a different commodity. Why am I suddenly exempt?

[zalman2bis]

It isn’t the first tax covering the 2nd. Why would 1 sale’s tax cover a 2nd one? Why can’t sales tax be paid many times on the same item by different people? Reseller there’s only 1 consumer. Private people don’t lobby for themselves.+1

Cars have 1 consumer for the full value. The first consumer uses up 10k worth of the car and then passes it on etc. I think the govt understands it doesn't make sense to tax the same item a bunch of times, if it's only going into a final person's hand, hence my question.

But I get your point about private people don't lobby.

[avromie7]

I understood that. But I'm still buying it at full price just paying with a different commodity. Why am I suddenly exempt?

Because the car dealers lobbied to make the rules like this. It helps them get more sales.

[zalman2bis]

Thank you all for your input. Appreciate it.

One more question. If I sell the car, the money is considered earned income and taxable?

[baron]

I understood that. But I'm still buying it at full price just paying with a different commodity. Why am I suddenly exempt?

Same reason if I trade my car for yours.

Cars have 1 consumer for the full value.

No. There are multiple retail purchasing consumers. The use isn’t what’s taxed, it’s the purchase of it. It isn’t property tax.

Thank you all for your input. Appreciate it.

One more question. If I sell the car, the money is considered earned income and taxable?

No. (Unless you’re selling for a profit?)

[Yrustaringatme]

Selling a 04 Avalon xls with 223k miles drives perfect no issues 2700$ located in monsey

[Yrustaringatme]

Selling a 2006 Lexus rx400h with 127k miles for 8300 no issues smooth drive located in lakewood

[myi]

Anyone bought a car from hertz or any rentel company? Hertz for example seemed to have decent prices on cars with low mileage.  Again it's been driven by 250 Ppl. So yes that's a big downside.

[Darth1]

Anyone bought a car from hertz or any rentel company? Hertz for example seemed to have decent prices on cars with low mileage.  Again it's been driven by 250 Ppl. So yes that's a big downside.

I was told from my mechanic that another advantage of buying from rental companies is that they usually do a good job of doing all the routine maintenance without cutting any corners.

[Realshlomo]

Anyone bought a car from hertz or any rentel company? Hertz for example seemed to have decent prices on cars with low mileage.  Again it's been driven by 250 Ppl. So yes that's a big downside.

Depends if the 250 ppl that drove it were bochurim.

[herb]

Depends if the 250 ppl that drove it were bochurim.

plenty of goyim wreck rentals as well