The team at A.M. Maus and Son knows the importance major financial decisions hold for your future, and we’re here to help ease those worries. Auto financing doesn’t have to be a stressful task, and there are even tax benefits to take advantage of when trading in your car.
Does a Trade-In Reduce Sales Tax?
When trading in your vehicle, you get to use the value of the trade-in to reduce the overall cost of your new vehicle. When you go the trade-in route and reduce the total cost, your taxable amount will be the final sale value.
For example, if the vehicle you’re looking to purchase is $20,000 but your trade-in is worth $8,000, the taxes will be a percentage of $12,000. If you were to purchase the vehicle without a trade-in at $20,000, you would pay the taxes at that higher amount.
Vehicle Trade-In Savings
Trading in your vehicle doesn’t just save you money, it can save you time as well. Selling your vehicle privately is a waiting game of finding an interested buyer, letting them test drive the vehicle, and, once it’s purchased, you may be without a car until you purchase your new vehicle.
By trading in your vehicle, you skip the wait while also contributing directly to the cost of your new vehicle, and reaping tax benefits in the process. It’s a win-win-win.
Make Auto Financing Easier at A.M. Maus and Son
When shopping for a new car, there are many tax benefits that come with trading in your old vehicle. Check out our car trade-in calculator to estimate the trade-in value of your current vehicle, then visit A.M. Maus and Son in Kimball, MN to find your next new vehicle today.