Sales Tax Strategy

RAnderson

I have a 2018 Jeep, looking to trade-in for new car. The trade-in value is still unknown because I have not yet picked which new car to get, but CarMax has offered 37k through their online portal. Because of the direct NJ sales tax savings when trading in, I would prefer to trade-in through the dealer, but I am worried that they may quote significantly less than CarMax, by even more than the sales tax savings.

My question for the group is can I sell to CarMax, buy new from like a BMW dealership, and still somehow offset the sales taxes as though I had directly traded in to the dealership? Thank you.

Michaell

RAnderson said:

I have a 2018 Jeep, looking to trade-in for new car. The trade-in value is still unknown because I have not yet picked which new car to get, but CarMax has offered 37k through their online portal. Because of the direct NJ sales tax savings when trading in, I would prefer to trade-in through the dealer, but I am worried that they may quote significantly less than CarMax, by even more than the sales tax savings.

My question for the group is can I sell to CarMax, buy new from like a BMW dealership, and still somehow offset the sales taxes as though I had directly traded in to the dealership? Thank you.

Short answer: no.

It would be two transactions, with two different businesses.

On a positive note, years ago I used a CarMax bid to up the dealer offer of my trade, so they matched it.