Why do you pay less taxes if you trade in your car?

I've noticed this before on my 350z purchase when i traded in my scion, i paid less taxes, does anyone know why this is?

sorry if this is noob question.

Im wondering the same thing. It doesnt sound right to me, but I hope it is true.

when you trade in a vehicle to purchase a new one, you only pay tax on the difference in price.

example:
new car = $30,000 ; trade-in value = $20,000
you only pay tax on $10,000.

Ordered my 370Z 6M/T Touring with nav, sport package, illuminated kick plates, carpeted mats, spare tire for $43,800 OTD...that was about $1,500 under invoice. Got the Platinum Graphite with Bordeaux Top and wine interior...

Got you, thanks.

what about down payment?

if you have more down payment for a car would you pay less taxes too then?

You could finance the whole $10k or pay it all in cash, but the sale price is still $10k after trade-in. Tax would still be the same amount.

no, the tax break only applies on the car you are trading in since you already paid tax on it...

Well i just bought the 2010 370z base+sport including, floor & trunk mats, illuminated kick plates, splash guards all for 31,600.00 OTD thanks to Robert's VPP. Dealer is also paying to have the car trailered here.

The reason why its so low is because the taxes only came out to be $802.37 I believe because of my trade in. Needless to say, I'm a happy customer. =) Thank you Robert!

They were trying to add an "environmental protection plan" for 995.00 for dealer add on, which included, a premium coating which helps the paint, window tint, nitrogen and wheel locks. pshhh rip off. at first they said it was mandatory which was bs, then they said help them pay half of it which was bs, then they just took it off the add on all together. haha

i just got home with my new 2010 PW base coupe + sport package + floor mats + splash guards... $32,518 OTD.

NICE! is it MT or AT? Did you use the VPP? any trade in? What is the tax rate there?

6MT, no trade, 6% tax...

i used the VPP discount, and it worked great!

Great Deals guys! I live in Las Vegas and was wondering if I can get in on these VPP pricing deals still? Thanks in advance :)

^ http://www.the370z.com/nissan-370z-p...companies.html

Which dealer did you go to, were you happy with their customer service? I'm up in Middletown and looking for a good dealer in Cincy.