SOooo How much more......?

Apparently he lives in La La Land (or some mystical magical place) where taxes are capped at $300.


I want to live in this place.

 

I want to go to there

 

Sounds like you just like to throw away money trading like you say.
What a way to waste money. You are saying you spend 5k already abd will spend another 5k to get the 16 over the 15.
Plus the money lost making payments if you have been doing that.
So tye reall cost will be in the range of 8 to 14 k over all from the 15 to 16 and you could add another 5 k for the other truck to your 15....


BTW what is it you really like about the new 16, have you driven it, what will the MPG be, what about the new motor......

You are in love with something you know nothing about.....

But the world is full of it...
If it floats your boat go for it.

 

Must be South Carolina, that's where taxes are capped at $300 on new vehicle purchases. I bought my Ducati Panigale there for that reason.

 

Its the way SC does things. You can buy a Boat plane, car, RV and sales tax is capped at $300 which is good because people are not financing TAX...However if you buy a $300,000 Maybach the Sales tax is $300 But every year you pay a property tax on your registered property depending on the Value...

For instance my 2012 Mazda costs $230 to register every year and it goes down to 0 depending on the value and mileage. High mileage cars are exempt.

It also makes selling your vehicle easier because there is no tax advantage to trading it in.

 

its called "ad valorem" tax in some places, personal property tax in others in regards to vehicles. they do this during registration to get away from the sales tax stigma.

 

It's all relative. I have watches that cost more than $5000...I am doing my part pumping up the economy LOL. My father taught me "you can spend your life PAYING interest or Collecting interest" There is a choice. But it requires giving up a lot of fun things when young.I chose the latter which meant buying old trucks and clunky junky cars and saving like crazy for most of my working life. That said, I never had a NEW vehicle until i was in my 50's, recently retired, and could pay cash,

The thing is I always paid cash for my cars, "lending to myself" and only bought what I could afford to pay cash for from <$1000 back in the day to a bit more today and always pay myself back with interest out of income. I know there are those who will take a low or no interest loan and use the funds to earn a higher interest rate. If someone needs 1-3% on $30,000, I guess that's an option. I would rather be the lien holder.

It was well worth five grand to trade the 14 with 19K and buy a new 15 .

It may be worth another $5000 to go for a 16 if I like it. You are right, I have not seen it yet. but I am making plans just in case I DO like it..If I don't I still have a great truck. I don't think a $10K spread between 14 and a 16 is a lot to pay.

I will know when I see one. MPG means nothing to me. It's a truck and I don't have a commute and drive a 12 MX5 most of the time. ( looking at the redesigned 16s there as well) So I don't put many miles on the truck. Knowing Toyota, Be lucky to get over 20 AVG anyway. The hint was the cafe standards to have 30% sold with a Tonneau Cover.

I am looking at $32k for a DCSB OR 2WD with tech...TOPS If it's over that I keep the 15. If I can get a"trade allowance of $27K I am all in. If not I decide what I would pay when I see the 16s. Hell I may like the LTD and really step up..

Some states charge 8% Sales tax PLUS property taxes every year

 

But you have to pay attention to laws in the state you live. You can buy a car in another state but when you go to register the state you live in may charge you the difference in sales tax.

Always assume taxes will screw you over at the end of the day, because that is almost always the case. Just like the SC tax. People are getting double hosed with excise and personal property tax. Shit, I'd rather pay $2500 in sales taxes once than pay twice that over the life of the car with bull shit tax.

 

luckily my state only charges 5% for new vehicles and that's it, no local/city/county tax required on top of that. also we get the tax credit for trade in's.

 

If you take a loan now, the dollar you borrow is worth 1:1. When you make a loan payment in 3 years, you are paying for one dollar of loan with money that is now worth less than a dollar due to inflation. You could have spent that dollar on something else when it was worth more. Spending it all on a truck when the dollar's value is high is a waste if someone will give you a 1-2% loan

 

You are making a huge assumption.

One would never pay $2500 in property tax in 10 years on a $30,000 vehicle. Nor would they pay $8000 total on a $100K vehicle. A $100K vehicle would be assessed a tax of $1500 the first year and would never total to $8000 over the life of the car.

After year four and five property tax is minimal as the values of the vehicles decrease and also goes down to 0 depending on miles well before 10 years. Its a far better tax situation than paying an 8% sales tax and for those who finance, pay interest on the sales tax. I have lived in five states and none were less expensive to buy a car than SC when it came to taxes.

There are States that charge full sales tax PLUS a property tax..Those people are getting hosed.

DAV here pays no property tax on vehicles or Home.

 

I understand what you are saying but as far as I am concerned,
Debt is debt.The only good debt, IMO is that which makes a business grow. ....I am at a place in life where I don't need to count pennies.

Inflation rate is 0.1% Too low to make that math work while paying 2% If someone can pay off a vehicle and does not need to earn the spread between a loan and a 2.9% SAFE (30 year bond rate) on there is no reason to take out a loan if they have the cash and at least 5X that cash invested or in savings..

So 2.9% on $30K earns $4609 over 60 months Minus taxes. Paying 2% on a loan leaves a .9 "profit" Not worth it to me.

Now if they gave 0% for five years that's $4600 that an be earned today using a 30 year bond with the inflation rate, That may be worth it for many people. Free money is always good but one has to be disciplined enough to invest the rest in a risk free environment. Most people just blow it on other things.

I don't see Toyota offering 0 % financing on a new 16 Tacoma.

 

That is a good deal.... I don't care for the trade in tax credit as it forces one to trade. Private sales are much better on popular vehicles. I would try to sell my Taco myself before trading it. I would rather sale it at low book to someone and still make more than dealer's "auction" prices. I sell most of my vehicles using AutoTrader. I only trade if it makes sense to me. Like paying $5000 plus my truck for a new 16 is worth trading...Much more than that and i am better off selling it privately

 

I understood what you said to mean that one is paying excise tax AND personal property tax on a vehicle each year. The personal property tax being a way of making up the loss of sales tax the state is taking in by the sales cap being $300.

My state excise tax alone for the first ten years of my vehicle are $2,019. No way do I want to pay an additional property tax on that. Especially one that could accumulate to be more than a typical sales tax rate.

As far as financing tax. The tax doesn't get more expensive, the borrowed amount gets more expensive. The IRS gets the same amount regardless. Plus one who takes a loan understands the law of interest. You ALWAYS pay more than the initial principal. One accepts that when taking a loan and shouldn't expect anyone to feel sorry for them.

Now then. I am going to go cry in a corner over the fact that I am paying the government around $4,400 in taxes for my vehicle in the first 10 years of owning it.

 

If I was a Toyota salesman you'd be on my Christmas and BD card list. Plus an anniversary, your wife's BD, your kids BDs, your Mom's BD and your dogs shot days.

 

Ouch..I guess there is no excise tax here except for the first $300 sales Tax. High mileage vehicles are exempt from property taxes.

Problem with loans is they get most of their INTEREST (edit) up front. After three years of a five year note much of the interest has been paid and it makes little sense to pay a car off. The first year is brutal when using a bank to finance. Amortization tables can be eye opening.

 

You mean interest up front, right?

Cash is king anyway. Loans are for the banks benefit.

 

Yeah they love me over there. .When it comes to service, I never hear "They all do that"

I deal solely with an Internet Sales Manager. I really don't think a $10K premium from a 2014 to a 2016 is a big deal. My trade is worth $27K+ which means my target price for the OR 2WD will be $32K If I can get that done, and I like the 16, I will do it and keep the truck over the long run. I cannot see wanting a 17 or 18.

 

ops yeah....Interest is paid up front....and I agree cash is king Despite 2% interest rates.

 

'LOL Cut from the same cloth.......It's only money right? Money gets converted to fun and security....That's what it's there for.