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Interested in other OSD experiences on actual transaction. I was contacted to finalize payment for my car to be received next month in Sweden and delivered in US in September. I was originally told I could get estimate of trade in value of my car that would be adjusted/confirmed when car is delivered in Sept., could transfer my tag at that time and would pay sales tax on difference (not sure this is a big deal in other states but in Florida could be several hundreds to in excess of $1,000). When dealer phoned me this week to come by and pay for car, he said I would need a new tag and would not receive any tax benefit from my trade as they were separate transactions unless I want to trade next week and not have a car until September (hardly practical). I'm paying cash for vehicle and understand need to pay fully in advance with risk of any changes to trade value on me until September, but does rest of explanation on transaction seem consistent with what others have experienced?
 

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It seems cosnsistent...

You sell your old car to the dealer, and you buy your new car directly from Volvo. You will get the Certificate of Origin from the manufacturer, and you, personally, will be the importer of the new car. Two independent transactions.

In CA though, I can take my license plate off the old car, before handling it to the dealer and then transfer it to the new car at the registration...cannot comment on Florida law...
 

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They are 2 separate transactions, however, If I were you I would call the Fla DMV and ask for a clarification on the tag transfer and if there is a trade allowance for the current vehicle when you transfer the tag.
 

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Same deal here in NM. It isn't a trade. You sell the old car to dealer - at time you need to pay or when Volvo is at dealer. We do not get any benefit from transferring our license plates/tags; we have to pay full amount of new plates when you register car. Only advantage - you don't need to memorize new plate # !!
 

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Same deal here in NM. It isn't a trade. You sell the old car to dealer - at time you need to pay or when Volvo is at dealer. We do not get any benefit from transferring our license plates/tags; we have to pay full amount of new plates when you register car. Only advantage - you don't need to memorize new plate # !!
It all depends on when you trade the car. If you decide to trade it right before you depart for Europe (when full payment is expected) you can include it in your transaction and, thus, take advantage of a sales tax credit as allowed per individual state law. Done it countless times.
 

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Interested in other OSD experiences on actual transaction. I was contacted to finalize payment for my car to be received next month in Sweden and delivered in US in September. I was originally told I could get estimate of trade in value of my car that would be adjusted/confirmed when car is delivered in Sept., could transfer my tag at that time and would pay sales tax on difference (not sure this is a big deal in other states but in Florida could be several hundreds to in excess of $1,000). When dealer phoned me this week to come by and pay for car, he said I would need a new tag and would not receive any tax benefit from my trade as they were separate transactions unless I want to trade next week and not have a car until September (hardly practical). I'm paying cash for vehicle and understand need to pay fully in advance with risk of any changes to trade value on me until September, but does rest of explanation on transaction seem consistent with what others have experienced?
Here in Missouri we have 6 months to sell an old vehicle and use that sale price against the purchase price of the new auto. So sales tax would only have to be paid on the difference....if you needed to pay the sales tax in full prior to that sale, you could apply for a refund from the state (6 months time limit). I would check with the Department of Revenue in your state............

BTW........I pick up my new S60 Monday here in town!!! Happy dance... :)
 

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Discussion Starter · #8 ·
Here in Missouri we have 6 months to sell an old vehicle and use that sale price against the purchase price of the new auto. So sales tax would only have to be paid on the difference....if you needed to pay the sales tax in full prior to that sale, you could apply for a refund from the state. I would check with the Department of Revenue in your state............

BTW........I pick up my new S60 Monday!!! Happy dance... :)
Greg, interesting thought. I will check and see if an option in Florida. Have a great trip.
 

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This is some info that had me concerned re: trading for OSD. Has anyone in Texas figured out the sales tax situation involved with trading your current vehicle? I know the trade amount is deducted from the new vehicle sales price and Texas sales tax is calculated on the difference(At 6.25%, it is considerable with a +- $30K trade). It looks like a fairly straightforward deal IF one completes the transaction on the 'front end'; but, naturally, that leaves one/me/you without a vehicle for a number of weeks.

How'd y'all handle this in Texas???
 

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This is some info that had me concerned re: trading for OSD. Has anyone in Texas figured out the sales tax situation involved with trading your current vehicle? I know the trade amount is deducted from the new vehicle sales price and Texas sales tax is calculated on the difference(At 6.25%, it is considerable with a +- $30K trade). It looks like a fairly straightforward deal IF one completes the transaction on the 'front end'; but, naturally, that leaves one/me/you without a vehicle for a number of weeks.

How'd y'all handle this in Texas???
We sold our trade after taking delivery in the states. We have 1 month to get new Volvo licensed and pay taxes.....6 months to sell old car to offset taxes on the new vehicle. Check with your Department of Revenue for your state regulations....
 

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We sold our trade after taking delivery in the states. We have 1 month to get new Volvo licensed and pay taxes.....6 months to sell old car to offset taxes on the new vehicle. Check with your Department of Revenue for your state regulations....
Thanks for that info. I've not handled a situation like this in my too many years of buying automobiles. I/we should have tried OSD a decade ago...THEN we would have all the answers!:D

Texas is a little screwy when it comes to vehicles brought in to the state AFTER purchase(use tax/sales tax/emissions test on brand new vehicle, etc)...I'm hoping to hear from a fellow Texan as to the appropriate procedure per their experience.
 

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In MA you end up paying the tax on the price of the OSD vehicle's bill of sale amount. The only provision for a reduction in tax is if you have a bill of sale that shows a vehicle being taken in trade - which of course can't be done with the VCNA arrangement. Unlike other states there's no provision for deducting the income from a private sale from the cost of a new car for tax purposes. Welcome to the United States of Inconsistency.
 

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In MA you end up paying the tax on the price of the OSD vehicle's bill of sale amount. The only provision for a reduction in tax is if you have a bill of sale that shows a vehicle being taken in trade - which of course can't be done with the VCNA arrangement. Unlike other states there's no provision for deducting the income from a private sale from the cost of a new car for tax purposes. Welcome to the United States of Inconsistency.
i believe OH is the same as MA.
 
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