mstenberg

I'm currently looking at trading my E55 for another newer E55 with less miles. Coming from the east coast I'm used to paying taxes only on the difference between the two vechicles and not the entire amount of the new vehicle. Is this something unique to California?

The car in question that I was looking at ended up being a beat up, ragged out POS, but I'm still contemplating a couple of other vehicles so it would be nice to know if I need to factor in $6K right off the bat...

Thanks,

-Mattias

jangy

I don't know if it is unique to Cally, but yes you will pay taxes on either dealer purchased or private sale. On the bright side, SoCal has the best pricing around.

Cue Vadim.... I get another referral!!!

whoover

From California's perspective the sales price is what matters, not how you pay for it. The trade is just a form of payment. It doesn't exempt you from paying sales tax on its value.

Not only that, but if you bring a car into a use tax state (like California) from a state that didn't charge you California's tax rate on the whole value, you have to pay CA the difference when you first register the car.