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Re: your trade in deal (sales tax collusion?)
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Posted by Floppymoose (more from Floppymoose) on Sun, 22 Apr 2001 05:30:27 Share Post by Email
In Reply to: your trade in deal, amtsst, Fri, 20 Apr 2001 16:34:25
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Soo.... the $340 question is....

Can the salesman and customer collude on a "buy new and trade in old" deal to lessen the sales tax? Say the two of you agree to a $35000 price on the new car with a $5000 trade in on your SUV. Can you then both decide to do a $31000/$1000 deal instead? The same amount of money changes hands, yet the sale price on the vehicle is $4000 less, which here in California would be $340 savings on the sales tax, plus some additional savings on the registration, which is based on sales price rather than a fixed schedule.

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