Electroman
Well-Known Member
Thanks.Only if you are trading in to the dealer you are purchasing from. For example, if you got $5K on trade for your car and bought a new car from the same dealer for $50K, you would owe tax on $45K. If you sold your car to CarMax (or any other dealer or even a private sale), you would owe tax on the full price of the new car, $50K. This means you need to consider the amount of additional sales tax when you plan on selling your car to someone else before buying a new one.
This means I get the difference in tax benefit only if I do a trade in with Tesla?
But Tesla is not considered a dealer in Texas. How will that impact this equation?