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Well, my plans have just been shattered. I just found out that I am obligated to pay sales tax on a new car even if I don't register it and even if I sell it tomorrow. I had planned to sell my base Sky and wait for the RL I have on order, but that plan just got shot to heck, unless I sell it for a high price.

My other plan was to use the vehicle exchange program to get a credit and use it toward a Sky, but from the looks of it, I would still have to pay the sales tax, although at that point I think I could claim that the new Sky is a trade and only pay tax on the price difference. Of course, the salesman told me that they won't let me do the VEP because there is no other Sky available right now to exchange for. I think that's baloney and I'll be calling Saturn about it.

So I could pay the sales tax and sell the Sky anyhow, or else trade the Sky when the RL comes. Either way, this is going to be more costly then I had expected :mad:
 

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Well I paid a 9% premium over MSRP, so I would have to sell for a steep price to break even. I'm not looking to come out ahead. Thanks for the input though!
 

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Could you apply for a Retail Tax license... basically saying you are a small business and can buy items for business with no tax, and resell - collecting tax?

In that scenario, you'd have to see about getting the tax back from when you purchased the car, and the tax would only be paid by the final buyer.

But may not be possible to do it after-the-fact.

The dealership buys cars from Saturn, and they don't pay a tax at that point. A small used car guy goes to an auction and buys cars for resale, and he doesn't pay taxes. Seems like there is a chance for you to do the same.

But consider the downside also... quarterly tax forms (even if no taxes)

Still a long, long shot... but I toss out just as an idea.
 

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jarcher said:
Well, my plans have just been shattered. I just found out that I am obligated to pay sales tax on a new car even if I don't register it and even if I sell it tomorrow. I had planned to sell my base Sky and wait for the RL I have on order, but that plan just got shot to heck, unless I sell it for a high price.

My other plan was to use the vehicle exchange program to get a credit and use it toward a Sky, but from the looks of it, I would still have to pay the sales tax, although at that point I think I could claim that the new Sky is a trade and only pay tax on the price difference. Of course, the salesman told me that they won't let me do the VEP because there is no other Sky available right now to exchange for. I think that's baloney and I'll be calling Saturn about it.

So I could pay the sales tax and sell the Sky anyhow, or else trade the Sky when the RL comes. Either way, this is going to be more costly then I had expected :mad:
Plus the next person still has to pay the taxin the car for the price you sell it to them. I see nothing wrong with what Saturn is asking from you. Make a choice Get the Sky or let someone else by it and wait for the Sky RL to come out. This is not a house or property you can just flip.
 

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jarcher said:
Well, my plans have just been shattered. I just found out that I am obligated to pay sales tax on a new car even if I don't register it and even if I sell it tomorrow. I had planned to sell my base Sky and wait for the RL I have on order, but that plan just got shot to heck, unless I sell it for a high price.

My other plan was to use the vehicle exchange program to get a credit and use it toward a Sky, but from the looks of it, I would still have to pay the sales tax, although at that point I think I could claim that the new Sky is a trade and only pay tax on the price difference. Of course, the salesman told me that they won't let me do the VEP because there is no other Sky available right now to exchange for. I think that's baloney and I'll be calling Saturn about it.

So I could pay the sales tax and sell the Sky anyhow, or else trade the Sky when the RL comes. Either way, this is going to be more costly then I had expected :mad:
You are going to have to pay the taxes if you have taken delivery. Get a retail sales license will NOT do the trick unless it is a vehicle wholesale/retail permit. And it would not be retroactive. How about this ---- drive the car until the RL shows up. If the RL was recent it will be a while before it shows up! The resell it or run by CarMax and see what they will pay you for it. I have seen some amazing prices paid to buy in-demand cars. Lastly, in some states you may only have to pay tax on the difference in price.

Good luck.
 

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Discussion Starter #8
snaponbob said:
How about this ---- drive the car until the RL shows up. If the RL was recent it will be a while before it shows up! The resell it or run by CarMax and see what they will pay you for it. I have seen some amazing prices paid to buy in-demand cars. Lastly, in some states you may only have to pay tax on the difference in price.

Good luck.
This looks like my best option. The Saturn dealer won't honor the vehicle exchange program because they don't have another Sky in stock. RI will charge sales tax on the amount I pay less my trade in, but if I sell the Sky privately then I have to pay full tax on the RL.

But I can probably do much better selling the Sky outright. The dealer won't give me much for the trade-in. I'm thinking I should sell it soon, while demand is still high. I can drive my Jeep until the RL comes in, which won't be real soon. Or I can sell the Sky when the RL arrives and eat the difference :eek:
 
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