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Trade-In Value Quote

When it’s time to upgrade a current automobile, consumers are faced with the choice of trading it to the dealership or selling it elsewhere. While a private sale can be a hassle, it sometimes can get more money for your car. However, to obtain the best deal, one should consider local tax rates that determine the most lucrative path.

Using the Sales Tax to Save on a Trade-in

A lot of car buyers don’t realize that in Texas they get a break on their sales tax when they trade in a car. For example, if your tax rate is 8 percent and you are buying a $30,000 car, you will pay about $2,400 in taxes.

However, if you have a trade worth $15,000, you would only pay the sales tax on the difference between the two in Texas. In this case, it would be about $1,200. Therefore, if you plan on selling that $15k car to an individual or a company, you would want to get more than $16,200 for it to make up for the tax difference.

Therefore, if a dealership offers you $15,000 for a trade-in but an individual or company offers you $16,000, you are still better off trading to the dealership.

Bring your car to us and let us give you a great deal on the trade-in and your new vehicle. Fill out the following form and let’s get started.

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