I should know the answer to this but now I’m not sure. I’ll use round numbers to make it simple.
Buying 30k car, trading in car worth 20k in trade that you owe 10k on.
Do you pay sales tax on the 10k difference between the new vehicle and trade vehicle values, or do you pay sales tax on the 20k you’re spending on the vehicle since you’re paying off 10k in old debt and financing 10k.
I think it’s taxes on 10k since you already paid taxes on the full amount paid for the vehicle you’re trading in.
You are correct, at least in NYS
You’ve got it right. Debt on vehicle does not matter assuming trading NYS to NYS. Things can get weird with out of state transactions but I won’t waste your time on that now unless it comes up.
Yep. One of the only advantages of trading into a dealer instead of doing a private sale.
Thanks, that’s how I thought it worked. Those numbers aren’t true representations of what I’m doing, but when we bought the CX-9 I had no idea we’d be trading a 3000lb boat/trailer combo on a 4300lb boat/trailer combo. The CX-9 will be traded in the spring for something with at least a 5k tow rating. I’m kinda sad about this because we’ve really liked the CX-9.
What do you plan on buying?
Not sure yet, just starting that research. It will be the wife’s daily so still looking for unibody SUVs that drive like cars, so not a Tahoe, Expedition, Yukon etc. Need at least 7 passenger capacity and 5k tow rating. The Honda Pilot, Toyota Highlander and GMC Acadia/Chevy Traverse are on the list though the GM products are unlikely to make the cut. Noticed a couple days ago that I can get into a 2014 Acura MDX for almost the same price as a 2014 Pilot so stopped and looked at an MDX last night when I happened to be driving by Ray Laks. Pretty impressed with that vehicle but haven’t driven it or any of the others yet.
I hear that … We’ve been pushing the limits of our Pilot for too many years. Once we move into our new house and get settled I’m getting AT LEAST a mid-sized truck.
To be honest the CX9 pulls it like a champ, which doesn’t surprise me since the same exact vehicle in the UK is rated for 2000 kg (4409 lbs) towing. We keep it under 65mph, tow with the trans in manual-matic mode to lock out 6th gear and always let it idle for a while at our destination to let it cool everything down. Liability wise though it’s just too stupid to keep it. I know if I was ever in a serious accident the first thing the insurance company would do was look at how much the trailer weighed and go, “you’re on your own on this one buddy”.
Exact same thing with the Pilot. I’ve towed 3 hour trips with my boat, but I know it’s probably killing the transmission and if there’s an accident, I’m unsure what my liability is.
I still don’t know how anyone would prove that you’re towing over capacity. The dry weight of my boat is 3200lbs. The rest of the equation is a guessing game based on fuel amount, amount of gear, trailer weight (which I’ve not seen a spec on)… I think it’s pretty unlikely that they’re gonna actually weigh it after an accident to prove it. And even then, show me the law or the clause in my insurance (which I have looked for) that says I’m liable if I go over the manufacturer’s tow rating.
If it’s serious the insurance company would take the time to figure out the weight to avoid paying, I guarantee that.
I’m not saying you’re wrong, but I can’t find any documented cases of that ever happening. Not even anecdotal stories on the internet. So, I know I’m not in the right here. BUT all I have to say to that is, “GOOD LUCK”.
But again, who’s to say that I’m not legally allowed to over the manufacturer rating? I’ve not seen any indication that it’s against the law or against my insurance policy.
Could be, just past the point in my life where I want to take chances like that. Plus we like towing all over and exploring new waterways so I want a vehicle I can jump in and tow 500 miles without wondering if my transmission is going to pop.
Yeah, I totally understand that. Which is why I’m also making the same change before next summer … Really I just wanted to have the above discussion with someone other than your typical keyboard warrior. So my suspicions are mostly confirmed, I’m probably liable, but no firm proof yet.
@BOBBYGRV might be able to shed some light on the insurance liability side.
Remember tow rating is based on standard vehicle weight and driver. If the boat/trailer weight is 4300lbs and towing rate for vehicle is 5000lbs you could end up over weight when you add passengers, fuel, cargo…
I know you have come to the dark side with your car, have you considered a T-reg or Q7 (has 3rd row)? both have 6600Lbs towing.
My wife thought she would absolutely hate a “real” body on frame truck until she got the G and she actually loves it (shockingly). Has your wife driven any body on frame, live axle stuff previously? I think that people get spooked on the idea of driving some giant cumbersome thing when in reality, all that body on frame means is “brake more on corner entry”, but with tons of obvious positive trade-offs if you’re doing actual truck stuff with it like towing and loading it up full of gear.
That said, my wife is probably an awful benchmark because I offered to get her any Porsche Macan/Cayenne or Land Rover product she wanted and she disliked all of them unequivocally both in styling and driving dynamics and wanted the weird German cold war-era truck that gets roughly gallons per mile instead.
Q7’s in the year/mileage range I’m looking are a bit more than I want to spend. No 3rd row in the Touareg. I’d love another VAG car though.
And yeah, my wife was the primary driver of our Expedition. She def prefers a car/van based SUV.
Makes sense. Expeditions are fucking huge.