Forum Discussion
laknox
Jul 12, 2021Nomad
millesecond wrote:
But, in AZ. the first owner pays sales tax, the second owner is no longer required to pay sales tax. It is only collected one time when the vehicle is new.
Just spoke to a dealer friend and this is not correct. =Any= time a vehicle is sold by a =dealer=, sales tax is paid on it; doesn't matter if it's a new vehicle or a used one originally sold in AZ. Only private sales are not taxed.
FWIW, if you trade in another vehicle, you only pay sales tax on the NET amount, not the full amount. It's always something to think about when trading in a vehicle. I.e. is the difference you'd get on a private sale more than the tax you'll pay on the purchase without a trade? Given the prices on used cars/trucks these days, I'd say trade it in!
Lyle
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