How Trading Your Vehicle
May Save You Hundreds

Many consumers do not realize that states often offer a tax credit when they trade in vehicle. For example, if you purchased a $30,000 vehicle in a state with a 6% sales tax and you did NOT have a trade-in, the sales tax would be $1,800 ($30,000 x 6%).

If the state allowed for a tax credit for trade-in's AND you traded in a used vehicle worth $14,000 against this $30,000 vehicle, your tax liability would be calculated like this:

   $30,000     Price of new vehicle
-  $14,000    Value of trade-in
= $16,000    Price used to calculate sales tax

The 6% tax would then be calculated on the $16,000 and NOT the full $30,000! This means you would pay $960 in tax instead of paying $1800. A savings for you of $840!

It's particularly important to consider the sales tax credit if you are thinking of selling your car privately. In the above example, you would have had to sell your vehicle for $14,960 just to "break even." If you factor in the expense of advertising the vehicle and the value of your own time, your break even point becomes even higher. If you didn't sell the vehicle for at least $15,000, you would in essence be losing money by selling it yourself. By trading the vehicle in, you can avoid the hassle of selling it yourself AND you could pay less tax… a real "win-win" situation if ever there was one!

Wondering what YOUR trade-in is really worth? Check the Galves value! As always, we offer the Galves Money Back Guarantee so you have nothing to lose and lots to gain!

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