# Financing question:
**URL:** https://forums.speedlife.net/t/financing-question/51256
**Category:** NYSpeed Automotive
**Created:** [July 9, 2008, 11:44am UTC](https://forums.speedlife.net/t/financing-question/51256 "2008-07-09T11:44:10Z")
**Posts on this page:** 20
**Page:** 1
### Author:  [@STEALTTH](https://forums.speedlife.net/u/STEALTTH)
#### Post date: [July 9, 2008, 11:44am UTC](https://forums.speedlife.net/t/financing-question/51256/1 "2008-07-09T11:44:10Z")
See post #12
Financing question:
I found a car that I like that at a dealer. They agreed to take my car + $500 for a trade. (I can still keep my aftermarket wheels and tires, which can be sold for part of the down payment).
I owe money on my car currently so here is my question.
Because of what I owe on my car, I will be financing what I currently owe plus the $500 minus the down payment, correct? It seems simple, but I just want to make sure.
Thanks…
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### Author:  [@OfficerK](https://forums.speedlife.net/u/OfficerK)
#### Post date: [July 9, 2008, 11:46am UTC](https://forums.speedlife.net/t/financing-question/51256/2 "2008-07-09T11:46:37Z")
Yes, what you owe will essentially be payed off by the dealer and then a new loan through them would be opened. I don’t believe they can sell/get the title to a car that still has a lien on it, so they need to pay that off to clear it.
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### Author:  [@Fry](https://forums.speedlife.net/u/Fry)
#### Post date: [July 9, 2008, 11:49am UTC](https://forums.speedlife.net/t/financing-question/51256/3 "2008-07-09T11:49:02Z")
werd^
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### Author:  [@Fry](https://forums.speedlife.net/u/Fry)
#### Post date: [July 9, 2008, 11:49am UTC](https://forums.speedlife.net/t/financing-question/51256/4 "2008-07-09T11:49:48Z")
(Sale Price) - (Trade In Value) + (Balance on old loan) - (Down Payment) = (New Loan Principle)
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### Author:  [@STEALTTH](https://forums.speedlife.net/u/STEALTTH)
#### Post date: [July 9, 2008, 11:50am UTC](https://forums.speedlife.net/t/financing-question/51256/5 "2008-07-09T11:50:48Z")
word…thanks guys
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### Author:  [@theblue](https://forums.speedlife.net/u/theblue)
#### Post date: [July 9, 2008, 11:54am UTC](https://forums.speedlife.net/t/financing-question/51256/6 "2008-07-09T11:54:27Z")
what are they offering you for trade in? hopefully they’re not screwing you on the other end.
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### Author:  [@justa4door](https://forums.speedlife.net/u/justa4door)
#### Post date: [July 9, 2008, 11:58am UTC](https://forums.speedlife.net/t/financing-question/51256/7 "2008-07-09T11:58:31Z")
i wana know what your looking at ?.. a mini van :gotme:
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### Author:  [@STEALTTH](https://forums.speedlife.net/u/STEALTTH)
#### Post date: [July 9, 2008, 12:03pm UTC](https://forums.speedlife.net/t/financing-question/51256/8 "2008-07-09T12:03:21Z")
:snky:
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### Author:  [@rage87](https://forums.speedlife.net/u/rage87)
#### Post date: [July 9, 2008, 9:57pm UTC](https://forums.speedlife.net/t/financing-question/51256/9 "2008-07-09T21:57:54Z")
If the car you’re trading in is your S2K I’ll buy your wheels if the price is right. I’ll even cover shipping. It’s so hard to find D2’s in black anymore, and I don’t really feel like dropping $3k for SSR’s.
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### Author:  [@Daddie](https://forums.speedlife.net/u/Daddie)
#### Post date: [July 10, 2008, 6:30am UTC](https://forums.speedlife.net/t/financing-question/51256/10 "2008-07-10T06:30:28Z")
PS - don’t forget - you will be slapped with bank fees and crap all over
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### Author:  [@Iamjeff](https://forums.speedlife.net/u/Iamjeff)
#### Post date: [July 10, 2008, 6:58am UTC](https://forums.speedlife.net/t/financing-question/51256/11 "2008-07-10T06:58:16Z")
> [@Daddie](#):
>
> PS - don’t forget - you will be slapped with bank fees and crap all over
meh. You’re only responsible for the dealer doc fee which is ~$45, title and registration fee (which renews your reg for the next two years, and if you’re transferring plates is prorated on your current reg). If its a new car, or the car has new tires on it…then you’re responsible for tire tax which is no more than $12.50. **SOME banks still charge a VSI fee around $75.**
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### Author:  [@STEALTTH](https://forums.speedlife.net/u/STEALTTH)
#### Post date: [August 5, 2008, 7:50pm UTC](https://forums.speedlife.net/t/financing-question/51256/12 "2008-08-05T19:50:06Z")
ok let me also bring this into the equation:
What about taxes? Even though I owe money on my current car, if i’m trading it on an equal value car is there any tax that has to be paid? I know that in most states, the taxes that are paid on a trade in are based on the difference between car prices. So if i was trading in a 15k car for a 20k one I would be paying tax on 5k.
In my case, the dealer is offering to take my car in on equal trade so there shouldn’t be any taxes. Does this hold true for a car that still has a lien on it?
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### Author:  [@walter](https://forums.speedlife.net/u/walter)
#### Post date: [August 6, 2008, 9:25am UTC](https://forums.speedlife.net/t/financing-question/51256/13 "2008-08-06T09:25:36Z")
Every state I’ve ever registered a car in (which does not include NY so it is pointless) you pay taxes on either the actual sale price or Blue Book value of the car.
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### Author:  [@sureshot](https://forums.speedlife.net/u/sureshot)
#### Post date: [August 6, 2008, 10:15am UTC](https://forums.speedlife.net/t/financing-question/51256/14 "2008-08-06T10:15:43Z")
In NYS, if you trade in the car to the dealership, you pay sales tax on the difference between the new car’s price and the market value of your trade in.
$30,000 new car - $14,000 s2k = $16,000 taxable
If it’s a wash, I believe you don’t pay sales tax.
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### Author:  [@JayS](https://forums.speedlife.net/u/JayS)
#### Post date: [August 6, 2008, 10:25am UTC](https://forums.speedlife.net/t/financing-question/51256/15 "2008-08-06T10:25:12Z")
> [@walter](#):
>
> Every state I’ve ever registered a car in (which does not include NY so it is pointless) you pay taxes on either the actual sale price or Blue Book value of the car.
What states would that be, because it’s an extremely common practice from state to state to only charge sales tax on the difference: (new car price - trade in) \* tax rate
[http://editorial.autos.msn.com/article.aspx?cp-documentid=434850](http://editorial.autos.msn.com/article.aspx?cp-documentid=434850)
> Trading-in may also offer a tax advantage if you are buying a vehicle at the same time. In most states, according to dealers and regional authorities contacted by MSN Autos, when your car is taken in trade you only pay sales tax on the difference in cost between its trade-in value and the price of the new car.
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### Author:  [@Iamjeff](https://forums.speedlife.net/u/Iamjeff)
#### Post date: [August 6, 2008, 12:16pm UTC](https://forums.speedlife.net/t/financing-question/51256/16 "2008-08-06T12:16:16Z")
You will not pay taxes if its a wash and both vehicles are priced the same. You’ll just have to roll over any negative equity into your new loan. /thread.
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### Author:  [@sureshot](https://forums.speedlife.net/u/sureshot)
#### Post date: [August 6, 2008, 12:37pm UTC](https://forums.speedlife.net/t/financing-question/51256/17 "2008-08-06T12:37:13Z")
^How many times can the same thing be repeated? :smash2:
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### Author:  [@Iamjeff](https://forums.speedlife.net/u/Iamjeff)
#### Post date: [August 6, 2008, 12:48pm UTC](https://forums.speedlife.net/t/financing-question/51256/18 "2008-08-06T12:48:19Z")
> [@sureshot!](#):
>
> ^How many times can the same thing be repeated? :smash2:
apparently enough times that we should make a sub forum about the topic.
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### Author:  [@chino](https://forums.speedlife.net/u/chino)
#### Post date: [August 6, 2008, 12:59pm UTC](https://forums.speedlife.net/t/financing-question/51256/19 "2008-08-06T12:59:33Z")
> [@sureshot!](#):
>
> In NYS, if you trade in the car to the dealership, you pay sales tax on the difference between the new car’s price and the market value of your trade in.
>
> $30,000 new car - $14,000 s2k = $16,000 taxable
>
> If it’s a wash, I believe you don’t pay sales tax.
correct you only pay the different on trade otherwise you would be getting double taxed.
jon, i have a spreadsheet with formulas for figuring out private party sale vs. trade-in with tax/downpayment and then an amortization schedule for your payments etc. if you want it… I used it while I was shopping for new cars. It’s pretty simple but it takes a bit to set up if you are starting from scratch.
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### Author:  [@Slopoke](https://forums.speedlife.net/u/Slopoke)
#### Post date: [August 6, 2008, 2:50pm UTC](https://forums.speedlife.net/t/financing-question/51256/20 "2008-08-06T14:50:17Z")
Yes they will pay it off, then you pay it off threw them. On the plus side you only have to pay tax on $500!!!