[jcasey]

The previous comments are correct. If you have a trade-in, you pay sales tax on the difference, or balance after figuring in the trade-in's value.

If you don't have a trade-in, you pay sales tax on the total price of the new vehicle rather than the difference.

So, to avoid a mistake, do the math ahead of the time with both options. I did this, so I am pretty clear on my bottom line for accepting an offer.

By the way, five Kenyan circus acrobats in California wanted to buy the truck with a sizable down payment. But, they wanted to pay the balance to me over time. I don't think I would do that, even with my 2nd cousin. And, I didn't make that up.