trade in tax issue in NJ

[seth1065]

Ok not sure if this was covered but I was at dealer yesterday to check out replacements for the TDI wagon and the dealer told me you would get no tax break when you trade in your car ( in NJ if you trade in a car that price is deducted from the price IE trading in a TDI wagon and the trade is $15000 and buy GTI for $20,000 you would only pay tax on $5,000), this makes me have less of a incentive to trade in and buy another VW, not sure if this is because it is a buyback and is in the fine print of the settlement. Also I assume the dealer is correct as it hurts his business but you never know. Also only extra money is $1,000 loyalty coupon open to all VW owners gas or diesel.

 

[gtmule]

When you do the buyback, you're not selling the car to the dealer, you're selling it to VWGOA, so the dealer can't tell the state that you sold them a car. This is part of the reason for the "restitution" part of the buyback.

 

[k1xv]

Just be happy that Governor Christie is not going with you to the closing, and ripping the check out of your hands.

Yep, absent a law that allows a person selling to a different entity than he is buying from, there is no sales tax break on the value of the car you are getting rid of.

 

[Airpizz6]

And, yes, this has been covered, close to a hundred times, and the response has consistently been what the OP did no want to hear.

 

[seth1065]

I know each state is different so was not sure NJ was discussed, if the mods want feel free to close.

And, yes, this has been covered, close to a hundred times, and the response has consistently been what the OP did no want to hear.

 

[Airpizz6]

We live in Blue states, and the good people in Trenton or Annapolis never saw a tax they didn't like.

 

[South Coast Guy]

We live in Blue states, and the good people in Trenton or Annapolis never saw a tax they didn't like.

Except taxes on booze in MD. I don't think they have been raised in decades.

 

[Rico567]

Except taxes on booze in MD. I don't think they have been raised in decades.

Alcohol is a depressant, keeps the hoi polloi calm and tractable.

 

[Mr. Furious]

We live in Blue states, and the good people in Trenton or Annapolis never saw a tax they didn't like.

I live in a red state and our legislature is all too happy to enact or raise taxes, as long as it's the middle class that gets the worst of it.

 

[Cincy_TDI]

In Ohio I am able to request a refund on the tax of my Jetta purchase in 2015 since it is being bought back. So I do pay more when I buy another car but at least I can get the other tax back.

 

[seth1065]

interesting, will have talk to my CPA.

In Ohio I am able to request a refund on the tax of my Jetta purchase in 2015 since it is being bought back. So I do pay more when I buy another car but at least I can get the other tax back.

 

[k1xv]

You can only get a sales tax refund on the car you sold if state law provides for it. In Vermont, you can get a refund if you sold your old car within 3 months of buying your new one. There is an form to apply for the refund.

http://dmv.vermont.gov/sites/dmv/files/pdf/DMV-VD115-Tax_Credit_Refund_App.pdf

 

[PC Passat]

In Arizona if a car manufacturer buys back your vehicle because it can not be repaired, they are supposed to refund the sales tax as well. Doubt that it will happen though.