Quote:
Originally Posted by BAN SUVS
Regarding loans, I was referring to cars suddenly being far more upside-down upon signing than they currently are. I think car sales would suffer across the board until either lenders considered taxes paid as part of the purchase price and inherent value of the car, or taxes were collected based on the dealer's cost and applied prior to the sale. Adding $4-6000 to the typical loan amount on a vehicle without adding it to the value of the car makes it a lot harder for most people to get a loan with normal down payment amounts as they are today. It's not really an issue about people not being willing to pay it.
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Buy used? No taxes on used cars. In fact, no taxes on used anything! Once the gov't gets their cut, they're not allowed to double dip. (The only exception would be on property taxes that get assessed annually.)
Plus, since many cars are "staple" items, they wouldn't be taxed anyway. Anything that qualifies as basic transportation (which is what people that are pinching pennies would likely buy anyway) would be categorized as a "staple" and therefore would be un-taxed. But if you want a sports car or luxury car or something "baller", well you're paying 20% tax... you gotta pay to play after all!