I'm headed up to Lancaster to most likely, buy a used car on Saturday. The main question I have is about sales tax.
So in MD, as well as in PA, if you trade in a car to the same dealer you purchase a car from, you only pay sales tax on the difference, which could be a nice discount. Example - buying a 20K car with a 12K trade, you only pay tax on 8K, not the full 20K. That would save $720 on that example.
OK, so when I buy a car in PA as an MD resident, what sales tax am I paying? From what I can find on the interwebs, the PA dealer would most likely not charge me any tax because I am an out of state resident, and then I would pay the 6% when titling in MD the car based on the bill of sale. SO, does that mean I'm getting screwed $720 because they will tax me on the 20K, not the 8K? Should I not trade the car in to a PA dealership?
So in MD, as well as in PA, if you trade in a car to the same dealer you purchase a car from, you only pay sales tax on the difference, which could be a nice discount. Example - buying a 20K car with a 12K trade, you only pay tax on 8K, not the full 20K. That would save $720 on that example.
OK, so when I buy a car in PA as an MD resident, what sales tax am I paying? From what I can find on the interwebs, the PA dealer would most likely not charge me any tax because I am an out of state resident, and then I would pay the 6% when titling in MD the car based on the bill of sale. SO, does that mean I'm getting screwed $720 because they will tax me on the 20K, not the 8K? Should I not trade the car in to a PA dealership?