Nancy asks…
If I buy a new car in MI,is sales tax 6% of the difference between new car price and trade-in car value?
I somehow remember they passed some Senate bill on March saying now trade-in value is applied to the calculation of the 6% sales tax when a new car is bought in Michigan. In other words, if I buy a new car in Michigan, the sales tax I need to pay is 6% of (new car price – trade-in value), right? Thanks for ur answer
CSC101 Customer Service answers:
In most states you pay taxes on the NET sale amount.
For example,
new car is $20k.
Trade in allowance 10k
Payoff existing loan $5k
Net trade in allowance= $5k
Taxable net sale= $15k
Joseph asks…
If you trade in a paid off car for one of lesser value do you get the difference back?
If i were to trade in a paid off car trade-in value at say $15,000 and I wanted to buy a car for $9,000. Would I get the difference back or would it just be considered a loss. I would be going to a used car place.
CSC101 Customer Service answers:
If they actually give you $15,000 you get the difference back.
Be prepared to not get $15k though. Sell it privately, then go buy the other car with cash. You will be better off.
Mark asks…
Car trade in value change after accident?
Can somebody generally tell me that how much car trade in value decreased after a accident (2003 Jeep Liberty Limited, good mileages, the car is repairable)? and how to negotiate with Insurance on this?
CSC101 Customer Service answers:
The only time an accident will affect the value of the vehicle on trade-in is if the vehicle is a total loss, or is so severely damaged that the laws in your state require a damage disclosure on your title.
Otherwise, unless you live in Georgia, a diminution (diminishment) of value claim is not valid.
If the vehicle is repairable, it is being restored to pre-loss condition, therefore, the value is not adversely affected.
Georgia has special laws regarding this type of claim, so that you can claim DOV for a cracked windshield if you like, but everywhere else, there has to be some kind of notation going forward on the title.
This is what makes Carfax so useless to consumers. It’s best used to determine if a vehicle has ever been salvaged, lemon-lawed, or had odometer fraud. All accidents, from tiny bumper dings to major crashes that do not result in a total loss or change in title status look identical. It just says “Accident.” Carfax ads imply that their reports are much more informative than they actually are. People look up their cars on Carfax, are horrified to see several “reports” on their VIN, spend $20 to see the report and all the “reports” are of perfectly innocuous things like change of ownership or even change of registration by the same owner.
Courtesy of Y!Answers