Question about sales tax

[petegee77]

I thought I would try Carvana, Carmax or Vroom to see where I could get the most money for my trade in. I assumed it would probably be higher than what the dealer would offer me. While talking to a friend I was told something I didn't know. He said if I trade in with the dealer, I only pay taxes on the difference between the cost of the new vehicle and the trade-in. If I sell to Carvana etc., I will have to pay taxes on the full price of the new vehicle. That tax savings might offset the difference between the two figures. I live in New York State. Does anyone know if this is true. If so, I have to re-think trading vs. selling outright.

True in NYS. I saved $1,006 in taxes by trading in my Jeep. Wish I would have checked out Carvana or Car Max 1st. tho . Nothing to lose.

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[Patrick]

I thought I would try Carvana, Carmax or Vroom to see where I could get the most money for my trade in. I assumed it would probably be higher than what the dealer would offer me. While talking to a friend I was told something I didn't know. He said if I trade in with the dealer, I only pay taxes on the difference between the cost of the new vehicle and the trade-in. If I sell to Carvana etc., I will have to pay taxes on the full price of the new vehicle. That tax savings might offset the difference between the two figures. I live in New York State. Does anyone know if this is true. If so, I have to re-think trading vs. selling outright.

I believe that it’s true in all states.