When we put our deposit on our Model 3 (we also have an S) we were told that there would be no trade-ins. We expect to receive our invite to configure in the next two months (Arizona). Under these circumstances we thought it best to put up our second car (an Acura) for sale, thinking it might take a couple of months to sell it, especially during the holidays. We sold it the first day! In Arizona when you figure the sales tax on a new car you deduct the value of the trade-in from the amount paid for the new car and the sales tax is figured on that amount. So, under these circumstances, can Tesla then charge me the appropriate sales tax figured on the price of the Model 3 less the amount I sold my Acura for? If not, how can I make this work out? Please don't tell me I'm SOL
No, you cannot trade in sales tax.
You can however trade in a car and, in some states, not pay sales tax on the amount you get for the trade.
Ahh, I posted after you posted the empty topic ... forgive the snark ....
I don't think Tesla will be able to do what you hope. Since you've already sold it you'll be using that money as a down payment not as a trade in.
Please read the entire question - Maybe I did not word it clearly.
I did read the question, you want Tesla to reduce the sales tax basis of your new car by the amount that you sold your old car for. I'm pretty sure that that would fall under the tax fraud category, so no, I don't think they will do that.
Arizona is one of those States that chose to 'protect consumers' by upholding laws that support the 'franchised dealership system'. So, the dealership trade in benefit on sales tax relief is not available to Tesla there. It is my hope that the result of Tesla's Federal suit against regulators and elected officials in Michigan will set a precedent that changes the situation nationwide when it comes to direct sales. Because no business should be forced to use franchises when they choose to sell direct.
FYI for Texas, I called the Tesla gallery in Houston this morning and they say that in Texas (even though Tesla is not technically a dealership) you ARE able to deduct the trade-in value from the purchase price to determine sales tax.
You did not make a trade-in, Tesla cannot credit your Model 3 purchase price for a trade-in that does not exist.
Op - Take some comfort in knowing that you probably sold the Acura for much more than Tesla would give you in trade in allowance. The difference should more than cover the sales tax differential. Here is California, the Board of Equalization does not allow that. BOE Pub 34 Motor Vehicle Dealers
If you accept a trade-in on the sale of a vehicle, the allowance for the trade-in cannot be excluded from the amount
on which tax is based. For example, if you sell a car for $20,000 and accept a trade-in valued at $4,000 as partial payment, tax is based on the $20,000 selling price."