sell or trade?

1BryNelson wrote:

JFC wrote:
I hate to do private sales, so my last two coaches have been trade in the old one. My negotiations are always just "how large a check do I need to write to get the new coach". I know how much I'm willing to pay so the dealer can structure the deal any way he wants as far as price and trade value as long as the difference is acceptable. In California sales tax is calculated on the purchase price and not the difference between sales price and trade, so a lower sales price with a lower trade is a selling point.

I really hate to argue but ignorance infuriates me. Sales tax in CA is calculated by the difference of selling price less trade-in. Period. Selling price has nothing to do with it; it's the difference that gets taxed. ....

Wow, I've only bought a couple of dozen cars (most with trades)and three coaches in California, the last two coaches with trades.In every case, the tax is calculated on the cash price of the purchase BEFORE deducting for the trade.I just went back and re-read the sales contract for my last coach and it's right there. I guess I've been over paying taxes for decades.