Jeepn’
Well-Known Member
- Thread starter
- #16
Wow, I didn’t know any of this!With high vehicle costs, taxes come into the equation. If you sell to Vroom or someone other than your dealer, you will pay full sales tax in the new vehicle. So all things being equal, the non-dealer offer needs to beat the dealer offer by the sales tax on your TRADE-IN value from the dealer. If they don’t, you come out behind.
So if your Tacoma is worth $30k trade-in, you won't pay sales tax on the first $30k of the Jeep. Let's assume you have a hypothetical 5% sales tax in your state with no funny luxury tax or anything (but you're in California, so you do). If the dealership offered $30k trade-in, you need to get paid at least $31,500 from any other source to break even, otherwise the increased taxes will offset your higher selling price.
So if I trade in my Tacoma on a custom ordered jeep, would I trade in at the time of the order placed or is that dealt with once the jeep is received?
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