You would still need to pay luxury tax on the difference regardless the trade in value.
example 100k car with 20k trade in, 15% on 80k
100k with 50k trade in, you still pay 15% on the 50k, not 12%
Quote:
Originally Posted by noclue
They calculate the luxury tax based on the purchase price no matter if you buy or lease. I heard there was a way that if you have a good relationship with the dealer they can inflate your trade in value to bring down the value of the car below the threshold.
That said, this is an awful tax policy to punish success. Even a toyota 4runner can get hit with the luxury tax. Bring back HST!
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