If you’re looking at purchasing a new car, you may be considering a trade-in. Our Mazda financial team wants to ensure you know the tax benefits of trading in your vehicle.
Tax Benefits of a Trade-In
When purchasing a new car, buyers have the option to trade in their current vehicle, which helps lower the price of the new car they are buying.
In addition, there are also tax benefits of trading in a vehicle: lower sales tax. You will only need to pay sales tax on the difference after the trade-in credit is applied to the new car’s cost. This could mean hundreds to thousands of dollars you will be saving.
For instance, if you are buying a $30,000 car and you have a $10,000 trade-in, you’ll only need to pay sales tax on the remaining $20,000. Since the sales tax in New Jersey is 6.625 percent, you would lower your sales tax cost by over $600!
Additional Information Concerning Trading in Your Car
There are many factors that are taken into consideration when you trade in your car. They include:
- Condition of your vehicle
- Mileage
- Make and model
- Any needed repairs
Before you decide to trade in your vehicle, get an estimate of your car’s current trade-in value to plan your down payment and estimated remaining costs.
Contact Sansone MAZDA To Learn More
Do you still have more questions about the tax benefits of trading in your car? Contact Sansone Mazda today. Once you’ve traded in your vehicle, we are happy to match you with the perfect new car!
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