Do you need to trade in a car to get a trade-in tax benefit?
Yes, you do need to trade in a car to get a trade-in tax benefit. It does not have to be the same brand as the dealership you're trading it into. For example, if you have a Volkswagen and you decide that you want that new 2019 Toyota and you come to us, we'll take your trade-in. We'll follow the normal trade-in process and make sure you get the car that suits you.
How do you trade in your car for the tax incentive?
We would say there are three simple steps to this. First, you decide on what car you want. Then we evaluate your car based on service records and market value. And finally we fill out all the paperwork and you drive off in your new car. It's as simple as that.
Tax Credit = State Tax Rate X (Total Car Price - Trade-In Value)
8.88% x (Total car price - Trade in value) = Tax credit |
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NY tax rate (8.88%) | TP- Total car price | TV- Trade in value | TP - TV = Final Price(FP) | Tax without trade (.0888*TP) | Tax with trade (.0888*FP) | w/o trade - w/trade = Savings |
.0888 | $20,000 | $4,000 | $16,000 | $1,776 | $1,420.80 | $355.20 |
.0888 | $10,000 | $1,200 | $8,800 | $888 | $781.44 | $146.56 |
.0888 | $32,540 | $6,500 | $26,040 | $2,889.55 | $2,312.35 | $577.20 |