[rolling_stone]

LOL...

[expatpat]

Of course, market dynamics will bring the used-car price up close to where it would be if the tax applied, via this mechanism:

the lack of a sales tax on the used car would make it a more attractive purchase at its old price than a new car -- more people will buy the used car than they otherwise would -- the price will go up due to demand because of this, until the gross price of the used car and that of the new car will be close to the normal balance. The new car may be a bit lower in gross price, because of the lower demand due to the buyer switch, but used car prices will get up most of the way to what the taxed price would be.