Used Car Sales Tax when trading in a car in Michigan?

If i trade in my car to a dealer and purchase a used car in michigan, do i pay sales tax on the total price of that used car, or do i pay sales tax on the difference between what my trade in value is and the price of that used car i am buying?Used Car Sales Tax when trading in a car in Michigan?
This is actually a really good question. I am not positive but think of it this way.



Your trading in your car. They are going to give you a price and write you a check and hand it to you (Theoretically). Then you are going to turn around and use that check to buy a new/used car. So my answer would be yes. You will pay sales tax on the entire sale of the new/used car...I think





HTH

ski doo