Quote:
Originally Posted by Blurbo311
We are practically twins here...
I'm in AZ and would mainly consider a used car because of the tax savings of purchasing private party, the add-ons would be a bonus.
I also agree that used asking prices are a bit unrealistic.
If the private party sales tax advantage didn't exist for me, I would probably just find a dealer to get the ED discount and plan a trip to Europe.
|
It sounds like used/new car buying in Idaho and Arizona are polar opposites. If you can buy a used PP car in AZ, and pay no sales tax to register it, this obviously encourages people to sell their used cars privately. Your sales tax is close to 9%, I think I read in another thread.
In Idaho, you have to pay sales tax on new and used cars regardless of who you bought them from, at a rate of 6%. On the other hand, if you trade in a car to a dealer in the process of buying a car from a dealer, you only pay our 6% sales tax on the DIFFERENCE between the value of the trade in and the price of the car you are buying. So to take a current example, I got about $20K trade in value on my 135i Coupe, that I have already traded in towards the M2 I'll be receiving in a couple of months. So, instead of paying the sales tax on ~$55K, I'll be paying it on $35K.
This obviously encourages people in ID to trade their used cars into a dealer, and it encourages the dealers to pay less for trade ins than they would pay otherwise, since they know that they have the customers who have a trade in by the balls.
My interpretation of all of this is that the car dealers have better lobbyists in Idaho than they do in Arizona; In Idaho, you have an incentive to trade in your used car, which severely limits and hurts the PP used car market. In Arizona, you have the exact opposite!