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BMW M2 Forum > Pricing / Ordering / European Delivery / PCD > Buy used vs. new, market price and resale

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      02-10-2018, 12:39 PM   #45
bummie
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Taxes

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Originally Posted by champignon View Post
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!
Same trade in re taxes in Florida. Instead of paying taxes on $57K on the M2 the taxes were figured on the difference between my 2011 335is trade in which was ca. $20K and the new M2.
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      02-10-2018, 09:50 PM   #46
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Georgia is the same way with the taxes. That's why i'm trading my RS instead of trying to sell it.
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