Quote:
Originally Posted by pikkagtr
are you 100% sure?
my GF just traded in her 2006 evo 9 for 21K and bought the new subaru forester for 24.5k and only paid the difference.
it was 3825$ + title/lic and dealer prep fees, $4290 OTD
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In CA my understanding was that they changed the law a few years ago to close that "loophole"... I know the last two BMW dealers I've worked with in SoCal would not give you the benefit of the tradein reducing your sales tax. The best they can do is shift dollars slightly by giving you less for your trade-in and knocking that same difference off the sale price.
ie if this were reality:
Trade In value = 10k
New Car Price= 20k
Sales Tax due (@10%) = $2k
Out the door price = $12k
A good negotiator would work this deal with the same reality to keep the dealer whole and pay a bit less out the door:
Trade in Value: $8k
New Car Price: $18k
Sales Tax due: $1.8k
Out the door price: $11.8k
(Dealer makes the same profit of $10k, you pay slightly less in taxes)
Did the GF work this deal with a franchise dealer or independent? I'm 99% sure that there is no way around this in CA anymore.