Trading in a car

Keep in mind you get tax credit for trading in. If it’s something cheap go private or try give me the vin. The last two I traded in a got close to 6k off on taxes on my new vehicle. Made it worth it for me to trade in.

I also forgot to get the best of both worlds you can have the private buyer do an in and out at the dealership. Give me the vin will also do an in and out. This works well because sometimes they smoke the dealers trade in offer and you get the tax credit.

If I would have traded my car into the dealer I would have had 42k to put down from my trade plus 4k in tax credit, so around 46k savings on new ride. With Give me the vin and doing the in and out I had 55k to put down.

Get a CarMax offer and bring it with you when you go buy your new car. Tell them you want the same amount as CarMax or you’ll just bring it to CarMax

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I know carvannna was overpaying for cats and they were the best place to sell to for a while. But those days are gone.

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Well that's not helping their business model.

Get the online estimate from Carmax. The last 3 cars that we have sold/traded in the past few years we did that and the dealership beat the offer.

I see someone suggesting Give me the Vin. That was a joke for me. Recently traded in a 2019 Accord. They offered $14k. Carmax $20k. Traded it at a dealership for $22k.

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You get a sales tax credit for a tradein.

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Which may or may not be worth it if you get screwed on the trade in

It really depends on the economics of what you are selling and what you are buying. I hadn’t traded a car to a dealership for a discount on a new car until about 2 months ago, when I traded in a 14 year old Ford that was not in perfect condition. In a private sale I wouldn’t have expected to get more than $3k to $4k, but the dealership offered me more as a trade in. The reduction in sale price and tax gave me much greater value than I could have expected from a private buyer.

In the past (before auto prices went crazy a few years ago) our practice was to sell the old car before it got so old and road worn. In the old market we always got more from a private sale than any dealership would offer, so we would buy the replacement car and then clean and fix up up the old car and sell it.

There’s no single answer. It depends on circumstances.

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The last two I traded in a got close to 6k off on taxes on my new vehicle.

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You traded in a vehicle(s) worth $72,000 on one vehicle? (Assuming 8.25 tax rate). Interesting.

What happens with sales taxes if you trade in a car that you still owe on?

For example if the dealer gives you $10k and you still owe $5k, do you get sales tax credit for the 10k or the 5k in equity you have in the trade in?

What kind of vehicle ?