Buying a used truck in Ohio tax question

[firecadet613]

You're always better off selling to a private individual and negotiating the price of the new vehicle w/o the trade when it comes to $. Time and inconvenience, maybe not so much.

It is all how you negotiate. And when you're talking more expensive vehicles, saving the sales tax on your trade in amount is a nice bonus.

 

[HoughMade]

Not true. I just bought a truck in Illinois and they collected Indiana tax on the trade difference only (as it should be), not the full sales price of the truck.

It varies from state to state.

 

[firecadet613]

It varies from state to state.

Very true.

If the state is a state that borders Indiana, it likely has a sales tax agreement in place and the dealership will collect taxes on behalf of Indiana.

If there is no agreement in place, you'll typically pay that states sales tax and settle up the rest when you register it in Indiana...

 

[ws6guy]

I ended up talking with another dealer that also has a truck I'm trying to get a deal on. He said I will only pay the 7% indiana tax on the value after the trade.