For those of you that swap out a lot of cars. Are you just eating the sales tax or do you have a dealers license? I know in other states you can just pay the tax differential between the cars, but I have not found a way around this...

 

I pay a lot of taxes of all kinds anyway...Taxes suck!

 

The guy I baught my car from is a 1 man dealer. He said it takes a lot of money and a lot of work to get a "dealers license" but from what I gather it pays off if your in it for long enough.

Sales tax is a ***** when turning cars! + theres a limit to how many you can buy/sell per year so at a certain point you NEED to have a dealer license.


I have thought about doing this many times, it would be fun but it takes money to make money

 

I feel the same way. I have considered finding a dealer and buying into the dealership in a limited manor ($5K?) for the right to use the dealer license.

 

If you lease your cars you can avoid the sales tax.

 

Please tell us how?

 

lease your car for a long term, 48 mos or more. The sales tax is divided by the number of payments and applied to each monthly payment. If you sell the car in 6 mos to a year you will only take a hit on a portion of the tax. I have done this many times. Lease the car and sell it to a private party when you are done and then lease a new one.

 

If you know your going to flip the car in a short time period then lease. You don't suck sales tax.

 

Your still paying sales tax on a lease. Theres no way to avoid the tax.

 

I never thought of that. You only pay sales tax on the depreciation portion before sale. Interesting tip.

 

the deal has to be good enough to pull it off or u really don't plan to keep it more than a year & resale it high to cover the lost. u'll pay more in lease than finance (which including all the tax up front) anyways.

 

yes but if you buy 150 k car you pay 8plus percent up front or 12k more or less.. if you plan on keeping the car a year or there abouts you lease to avoid that.... you only pay taxes on the payment amount.... so for example your lease is 1300 monthly... you pay 100 bucks tax or so... then you would pay 1200 per year or so and that it thus saving the difference....

 

ALL THE TAX`I CAN EAt. it sucks but what can you do? thats prob the reason i have all these cars......

 

Not necessarily so, if you understand leasing -- the lease money factor, residual value and even the bank doc fees are all negotiable. The actual APR on a lease can be lower than the APR charged on a straight purchase finance. Leasing is just another financing vehicle -- done right it is no more costly than purchase financing, except that you can experience substantial sales tax savings, as mentioned above, whether you're a long or short term owner. In addition, there are other advantages to leasing.

 

Jack,
forgot to mention u're a much more older than me respectfully. therefore ur credit rating is much higher than me. i usually get sh*tty rates on lease that makes no difference when tax comes in to play or not.