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1
RWSGFY
2017 Dec 13, 1:29pm
RWSGFY
2017 Dec 13, 1:29pm
What Uncle Sam are you talking about? There is no federal sales tax on used cars.
2
joshuatrio
2017 Dec 13, 1:29pm
joshuatrio
2017 Dec 13, 1:29pm
I agree. It is a scam. And damn, that's over $10k in taxes on a car.
On the other side of the fence, if sales tax weren't collected on used cars, guess what everyone would probably buy?
On the other side of the fence, if sales tax weren't collected on used cars, guess what everyone would probably buy?
3
RWSGFY
2017 Dec 13, 1:48pm
RWSGFY
2017 Dec 13, 1:48pm
joshuatrio says
Hookers and blow?
On the other side of the fence, if sales tax weren't collected on used cars, guess what everyone would probably buy?
Hookers and blow?
4
BayArea
2017 Dec 13, 1:53pm
BayArea
2017 Dec 13, 1:53pm
Satoshi_Nakamoto says
You are right, local level. I modified my post above
What Uncle Sam are you talking about? There is no federal sales tax on used cars.
You are right, local level. I modified my post above
5
ja
2017 Dec 13, 3:23pm
ja
2017 Dec 13, 3:23pm
Some places (Europe), you pay 10% of tax for selling a house from owner to owner (transaction tax)
Government just gets the money from where they can. At least they are not realtors
Government just gets the money from where they can. At least they are not realtors
6
Booger
2017 Dec 13, 7:22pm
Booger
2017 Dec 13, 7:22pm
Might be the only second hand thing that you can buy from another person where you have to pay sales tax.
Not so fun fact:
Delaware charges sales tax on new cars.
Delaware does not collect any sales tax from consumers. Vehicle sales in Delaware are also subject to a 3.75% "document fee" in place of a sales tax.
Not so fun fact:
Delaware charges sales tax on new cars.
Delaware does not collect any sales tax from consumers. Vehicle sales in Delaware are also subject to a 3.75% "document fee" in place of a sales tax.
7
RWSGFY
2017 Dec 14, 10:08am
RWSGFY
2017 Dec 14, 10:08am
It happens because you have to register the fucking thing and this is where they get you. It's non-enforceable on other types of used goods changing hands so they let it slide.
Since all guns are now have to be registered in CA they might start collecting sales tax on used guns too.
Since all guns are now have to be registered in CA they might start collecting sales tax on used guns too.
8
Shaman
2017 Dec 14, 10:35am
Shaman
2017 Dec 14, 10:35am
I tend to buy my vehicles one year old with as low miles as possible. That means someone else took that YUUUGE hit on initial registration and sales tax, license plate fees, first year depreciation, and in the case of trucks in california, a utility vehicle fee. Buying this way saves an easy $15-20k, and I wind up with an almost new car that’s barely broken in.
Then I pay it off quickly, do regular maintenance (mostly myself), and keep it for 20 years.
The wife’s car is oldest right now, a 2001 pushing 200,000 miles. It’s still in great shape, no rust, no oil leaks, everything works, and a lot of maintenance parts have been replaced. I did the radiator and hoses last year. I just did the spark plugs, serpentine belt, air filter, and windshield wipers last weekend. Cost me $115 in parts and about an hour of my time.
I’ll do the water pump and fuel filter next weekend. Estimated cost: $95.
Keep up with maintenance before the wear items break, and you’ll have a reliable car at any age.
Then I pay it off quickly, do regular maintenance (mostly myself), and keep it for 20 years.
The wife’s car is oldest right now, a 2001 pushing 200,000 miles. It’s still in great shape, no rust, no oil leaks, everything works, and a lot of maintenance parts have been replaced. I did the radiator and hoses last year. I just did the spark plugs, serpentine belt, air filter, and windshield wipers last weekend. Cost me $115 in parts and about an hour of my time.
I’ll do the water pump and fuel filter next weekend. Estimated cost: $95.
Keep up with maintenance before the wear items break, and you’ll have a reliable car at any age.
9
anonymous
2017 Dec 14, 11:12am
anonymous says
Sales taxes are a dumb idea. Sales taxes on used goods doubly so.
Sales Tax on Used Cars
Sales taxes are a dumb idea. Sales taxes on used goods doubly so.
10
Shaman
2017 Dec 14, 11:15am
Shaman
2017 Dec 14, 11:15am
Play it Again Sports also must charge sales tax on the used equipment it sells.
As do pawn shops and second hand stores.
The state is always hungry!
As do pawn shops and second hand stores.
The state is always hungry!
11
RWSGFY
2017 Dec 14, 11:27am
RWSGFY
2017 Dec 14, 11:27am
Quigley says
Good point. But at least they can't get you over face-to-face cash transaction. Not yet.
Play it Again Sports also must charge sales tax on the used equipment it sells.
As do pawn shops and second hand stores.
Good point. But at least they can't get you over face-to-face cash transaction. Not yet.
12
FNWGMOBDVZXDNW
2017 Dec 14, 11:37am
FNWGMOBDVZXDNW
2017 Dec 14, 11:37am
This tax makes it costly to change cars as your needs change. It's a silly burden on people who are trying to live efficiently. Same goes for large fees/taxes on selling a house.
Our local will hit you with sales tax, plus a yearly tax of about $500 on a $30K car. I've often thought that both these taxes and the absurd practice that insurance companies have of hitting you with a large premium increase for having an extra car are bad for individuals and the environment. If people could have two commute cars and an SUV/Truck for family stuff, towing, or whatever, that would be much better than having people commute with big gas guzzlers. But, it will cost you in extra taxes and insurance. This limits people's ability to live efficiently.
Our local will hit you with sales tax, plus a yearly tax of about $500 on a $30K car. I've often thought that both these taxes and the absurd practice that insurance companies have of hitting you with a large premium increase for having an extra car are bad for individuals and the environment. If people could have two commute cars and an SUV/Truck for family stuff, towing, or whatever, that would be much better than having people commute with big gas guzzlers. But, it will cost you in extra taxes and insurance. This limits people's ability to live efficiently.
13
BayArea
2017 Dec 29, 8:06pm
BayArea
2017 Dec 29, 8:06pm
Thanks for al the comments everyone.
Unfortunately it doesn’t look like there is much we can do about this but take it on the chin
Unfortunately it doesn’t look like there is much we can do about this but take it on the chin
The recent sale of a Corvette I owned got me thinking about the repeated sales tax for used automobiles that change ownership title.
The Carfax report showed the car as having 4 owners, including myself. The fifth owner is the guy that bought the car from me.
When that car was new, some poor bastard bought the thing for $52k and paid sales tax of about $4500.
Fast forward a couple years and the first owner sold the car to the second owner for $40k, $3500 in sales tax.
The car was later sold to the third owner for $30k, $2700 in sales tax
I bought the car for $17k and flushed $1500 down the toilet.
The fifth owner bought it from me for $20k, and presumably gave away $1800 as taxes.
Maybe I’m missing something but this comes across as a taxation travesty. How have we come to accept that this is ok?
I mean full sales tax was collected on the car when it was brand new. And every time the car changes hands, the government takes their commission. I see no logic on this.
I admit there are some things in our tax code that are tragic, but this is one that I’ve never been able to wrap my head around.
Any comments?