Hey guys I was wondering, if I trade in my car towards a new car in arizona then have my new car registered in CA where I live what sales tax do pay. The dealer is telling me to only pay the difference in the values of the two cars sales tax is that true. i am pretty sure I need to pay at least the full value of the new car's tax in CA when I register it here. Do I have to pay the tax on my trade in AND the tax when registering it here in ca? Thanks for the help

 

I think you're going to have a problem registering the car in CA. Anything under 7500 miles is considered a new vehicle, and the DMV cannot accept the application to register or operate the car in CA. The only workaround is to register and pay the sales tax for the car in AZ, and drive it here until you reach the necessary mileage, then pay the registration fee in CA later.

http://dmv.ca.gov/pubs/brochures/fast_facts/ffvr29.htm

 

You only need to pay the tax on the full price of your new car. You will also have to pay all of the associated CA taxes on a new car such as luxury tax and gas guzzler tax if applicable. Get the deal done soon because both sales tax and VLF go up soon!

 

Sorry for the confusion guys, the car is used and has over 7500 miles. Given that fact it should be alright correct? Do I need to smog it? So if I pay less tax for it in Arizona I have to pay the difference of ca and Arizona tax when registering it in ca right. Thanks for the help.

 

You will need to smog the car. You will not pay Arizona tax. When you license it in CA, you will pay the full CA sales tax, not the difference. You have 10 days from the time you receive the title from the seller to register the car in CA.

 

Not sure if you have to smog the car. If the car is 6 model years or newer, you do not need to smog it. But since your registering a car from Arizona, there may be a stipulation that requires the car be smog tested. As stated above, you will be required to pay CA tax at the time you register the vehicle.

 

I think he still needs to smog it. When I brought my '04 996 TT into Ca from AZ, I had to have it smogged.