If I settle on 25,550 for my new rav, and didnt have a trade, I would pay tax on this whole amount, right? What if I have a trade in of 14,000. Would I only have to pay tax on that difference? I was told by one dealer to be careful of the "tax advantage" He explained it, but I didnt quite understand it. I dont actually have a trade per say. I am turning in a leased vehicle with a payoff of 13,28, but this dealer is willing to give me 14,000 and treat it as a trade. I want to make sure they are not over charging me on tax!! Any help would be appreciated. thanks..