Quote:
Originally Posted by chasandvalr
A lot of people do not know that CarMax sells new cars. The last 3 cars I have purchased have been from CarMax. They have also been the best place for my trade-in, too. If you purchased a car from them and then later trade for another, they do not charge you tax. They use the tax from the previous purchase.
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That's nothing special (sales tax). When you buy any car with a trade-in or in your case an exchange you NEVER pay sales tax on entire value. The trade in value is deducted from the next vehicle and you only pay sales tax on the difference IF IT COST MORE. It the replacement is the same as the original value, 0 tax, if it's less you get a refund if it's more you only pay the on the difference. Just like exchanging a pair of pants from Macy's, you're refunded the tax you paid and apply it to the next pair of pants.
That something you have to consider when you buy a new (or used) car and sell yours
privately. You lose that sales tax advantage unless of course you get that much more for your private sale to cover the tax delta. If your private sale is for example $15,000 you are going to pay around $1050 more on tax alone for the new car depending of course on what the dealer would give you for yours. SOMETIMES a private sale isn't worth the hassle when you take sales tax (and aggravation) into consideration.