Experience with buying in car in OR for WA
06-20-2005, 12:03 PM
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Experience with buying in car in OR for WA
I am looking at buying a car from a dealer in Oregon, to be registered in Washington state.
I understand that the WA use tax applies anyway, but how is it calculated?
For example, if I have a trade-in, is the trade-in price deducted from the sales price to calculate the use tax (just like buying a car at a WA dealer)? Is the sales price or actual value of the car used (since it lost $$$ just being driven off the lot)?
Anybody's done that?
I understand that the WA use tax applies anyway, but how is it calculated?
For example, if I have a trade-in, is the trade-in price deducted from the sales price to calculate the use tax (just like buying a car at a WA dealer)? Is the sales price or actual value of the car used (since it lost $$$ just being driven off the lot)?
Anybody's done that?
06-20-2005, 12:07 PM
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as they say death and taxes.. ya got both coming!
I've done this 3 times 2 from Or 1 from cali.
you pay based on the value of the car (verified by legal docs signed by both parties).
Private party ability to "massage actual price" paid vs sold to is one dangerous proposition.
KBB & NADA values are now used to confirm or validate actual price paid, if it falls outside that variance, you have a major problem on your hands....fraud... and only for a tiny bit of savings.
in teh case of a trade in. you pay the Delta between old trade in and new car pricing which should be a tax advantage to you over private party or straight new purchase.
long story short, take bill of sale, registration (for OR or whatever state) to vehicle licensing, you pay them a check or cash for sales tax, get your plates and if it's an o5 or 06 you skip out on the monorail tax (first year only) and get your plates.
HTH"s pm me with any other questions. it's really simple.
good luck!
I've done this 3 times 2 from Or 1 from cali.
you pay based on the value of the car (verified by legal docs signed by both parties).
Private party ability to "massage actual price" paid vs sold to is one dangerous proposition.
KBB & NADA values are now used to confirm or validate actual price paid, if it falls outside that variance, you have a major problem on your hands....fraud... and only for a tiny bit of savings.
in teh case of a trade in. you pay the Delta between old trade in and new car pricing which should be a tax advantage to you over private party or straight new purchase.
long story short, take bill of sale, registration (for OR or whatever state) to vehicle licensing, you pay them a check or cash for sales tax, get your plates and if it's an o5 or 06 you skip out on the monorail tax (first year only) and get your plates.
HTH"s pm me with any other questions. it's really simple.
good luck!
06-20-2005, 12:33 PM
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Originally Posted by dojo_s4,Jun 20 2005, 12:07 PM
as they say death and taxes.. ya got both coming!
I've done this 3 times 2 from Or 1 from cali.
you pay based on the value of the car (verified by legal docs signed by both parties).
Private party ability to "massage actual price" paid vs sold to is one dangerous proposition.
KBB & NADA values are now used to confirm or validate actual price paid, if it falls outside that variance, you have a major problem on your hands....fraud... and only for a tiny bit of savings.
in teh case of a trade in. you pay the Delta between old trade in and new car pricing which should be a tax advantage to you over private party or straight new purchase.
long story short, take bill of sale, registration (for OR or whatever state) to vehicle licensing, you pay them a check or cash for sales tax, get your plates and if it's an o5 or 06 you skip out on the monorail tax (first year only) and get your plates.
HTH"s pm me with any other questions. it's really simple.
good luck!
I've done this 3 times 2 from Or 1 from cali.
you pay based on the value of the car (verified by legal docs signed by both parties).
Private party ability to "massage actual price" paid vs sold to is one dangerous proposition.
KBB & NADA values are now used to confirm or validate actual price paid, if it falls outside that variance, you have a major problem on your hands....fraud... and only for a tiny bit of savings.
in teh case of a trade in. you pay the Delta between old trade in and new car pricing which should be a tax advantage to you over private party or straight new purchase.
long story short, take bill of sale, registration (for OR or whatever state) to vehicle licensing, you pay them a check or cash for sales tax, get your plates and if it's an o5 or 06 you skip out on the monorail tax (first year only) and get your plates.
HTH"s pm me with any other questions. it's really simple.
good luck!
06-20-2005, 12:42 PM
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Originally Posted by dojo_s4,Jun 20 2005, 12:07 PM
in teh case of a trade in. you pay the Delta between old trade in and new car pricing which should be a tax advantage to you over private party or straight new purchase.
Trade-in value: $10000
Savings in WA taxes: $890
Effective money for your old car: $10890
Private resale: $12000
Cost in WA taxes: ($1068)
Deduct the WA taxes from federal, at a marginal rate of 28%, net savings: $299
Effective money for the private sale: $11231
This whole racket [only dealers can deduct trade-in price from the sales tax] has become a notch less interesting....
06-20-2005, 01:20 PM
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Isn't there some sort of one-time gifting law when buying a car private party? Meaning if I sold my S2000 to Jerry Peterson for $21K and I'm the one and only owner, I have the option of gifting it once for the life of the car... that Jerry pays only $21K total for the car.
True or false?
True or false?
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06-20-2005, 01:29 PM
#8
Originally Posted by GMan,Jun 20 2005, 01:42 PM
Now, since we can deduct the WA sales tax from the federal tax return, trade-in has become even less of a deal. Hypothetical example:
Trade-in value: $10000
Savings in WA taxes: $890
Effective money for your old car: $10890
Private resale: $12000
Cost in WA taxes: ($1068)
Deduct the WA taxes from federal, at a marginal rate of 28%, net savings: $299
Effective money for the private sale: $11231
This whole racket [only dealers can deduct trade-in price from the sales tax] has become a notch less interesting....
Trade-in value: $10000
Savings in WA taxes: $890
Effective money for your old car: $10890
Private resale: $12000
Cost in WA taxes: ($1068)
Deduct the WA taxes from federal, at a marginal rate of 28%, net savings: $299
Effective money for the private sale: $11231
This whole racket [only dealers can deduct trade-in price from the sales tax] has become a notch less interesting....
06-20-2005, 01:49 PM
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Originally Posted by RT,Jun 20 2005, 01:29 PM
keeping in mind DonBob is at a way higher marginal rate of course, he could probably make money in the transaction ....
Who's DonBob?
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