Vehicle Trade Tax Credit

What is a Trade In Tax Credit? - Almost every state allows you to deduct your trade-in amount from your next vehicle's sale price before tax. So, if you want to buy a vehicle for $40,000 and the dealership offers you $15,000 for your trade-in, you will only be taxed on $25,000 instead of the original $40,000. This will result in significant tax savings for the customers which is referred to as a tax credit.

Example:

Customer is looking to purchase a 2024 Camry. See below to see how a trade in vehicle can result in significant savings.

1- With no trade. The customer will pay a total of $1,769.83

1 - Total Trade Allowance $20,000

2 - Trade Pay-Off $15,000

3 - Trade Tax Savings $1,200

4 - Total Effective Trade Allowance $21,200

5 - Remaining Tax Customer Must Pay $569.83

Thoughts:

Customers can save big on taxes when trading in their current vehicle. If a customer is hesitant to trade a vehicle in and think they can receive more money to sell it themselves. Remind them of the hassles that come with selling the vehicle themselves. Wasting time with low ball offers, Customers not being able to provide proper payment for the vehicle, handling DMV paperwork. Additionally, they will have to sell it for a significant amount of money more to actually be saving money. In this example the customer would have to sell their vehicle for $21,000 on their own just to break even compared to our $20,000 offer.