Quote:
Originally Posted by MysticLlama
Not CA specific, but WA has a similar sales tax issue.
What people will do is arrange to trade in both cars to a dealer and then the other party buys them back at that price, the trade-in credits the value of sales tax back and you only pay tax on the amount over that.
So up here, people will organize the trade with a friendly dealer and give them $500-1000 or so for the paperwork trouble depending on other factors. Goes pretty quick.
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California doesn't have that "pay tax on the difference" thing. Trade in a $90k last year Porsche on a new $100k one and pay tax on $100k.