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In PA is there a law stating that a new vehicle buyer must pay sales tax on the trade-in vehicle amount if the trade in vehicle title is not in the same name of the person buying the new vehicle?In: Car Buying |
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Yes. Here's why:
A person buying a new vehicle can only trade in a vehicle he/she owns personally. So, if you come to the dealer with a car your boyfriend owns, that he gave you to trade in on the car you're buying, the title to the car being traded must first be transferred into your name so that you can legally trade it. Unfortunately, in PA, sales tax is collected by the state every time a car is sold or the title changes hands. In a gift situation, tax is figured on the value of the car, except when a vehicle is given to an immediate family member (such as mother to daughter), in which situation no tax is charged.
However, it can all be done at one sitting, so long as all the documents and ID's are in order.
A person buying a new vehicle can only trade in a vehicle he/she owns personally. So, if you come to the dealer with a car your boyfriend owns, that he gave you to trade in on the car you're buying, the title to the car being traded must first be transferred into your name so that you can legally trade it. Unfortunately, in PA, sales tax is collected by the state every time a car is sold or the title changes hands. In a gift situation, tax is figured on the value of the car, except when a vehicle is given to an immediate family member (such as mother to daughter), in which situation no tax is charged.
However, it can all be done at one sitting, so long as all the documents and ID's are in order.
First answer by Rtb3rd. Last edit by Rtb3rd. Contributor trust: 1 [recommend contributor]. Question popularity: 2 [recommend question]
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