8 tips for negotiating a car trade-in #rent #a #car

#trade in cars

8 tips for negotiating a car trade-in

5. Negotiate the new purchase and car trade-in separately. Conventional wisdom dictates that each transaction should be treated separately. However, rather than negotiating the new car price first, Reed suggests you start the deal with the car trade-in, especially if you have a fairly sought-after car. One way to find out is to put up an ad on Craigslist.org and see what kind of responses you get. Leave off your phone number if you like and just use the Craigslist.org e-mail address, but see how many people bite.

“The trade-in is the weakest part of the deal. But if you have something desirable, the only reason the dealer won’t take it is if he already has two or three of the same vehicle on his lot,” says Reed.

6. What should you say? Start your negotiation by letting the salesperson know you’ve done some research, says Scott. “Say something like, ‘I was researching cars online to see what I can get for this car,’ not ‘it’s worth $4,000 and not a penny less,'” Scott says.

7. Avoid game playing. Reed says some unscrupulous car dealers have been known to throw your keys on the roof so you can’t leave until you drive off in a new car .

“Avoid all this game playing, and don’t surrender your keys,” says Reed. “Make a phone call before you go, ask the used-car manager what the value of your trade-in is. If you get a negative feeling on the phone, you’ll want to scratch them off your list and save yourself a trip.”

Salespeople may also try to hold on to your driver’s license and registration, says Emerson. “Carry a copy of your driver’s license to give them and don’t part with the registration until you’re in the finance office.”

8. Explore the tax advantage. All but eight states allow you to pay sales tax on the purchase price of the new vehicle minus what the dealer is giving you for your car trade-in. The reduction in sales tax in states with rates of 9 percent to 11 percent can be substantial. Check your state’s tax advantage. Emerson says you can save as much as $1,000.

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Used Car Trade-In Value from Black Book #car #loans

#trade in value of car

Get a Black Book Used Car Appraisal on Your Trade-In

In addition to your used car appraisal, get a free new car price quote.

Widely known and highly respected in the automotive industry, Black Book is an online leader in offering timely, independent and accurate used car values. Black Book pulls actual numbers that vehicles are fetching at wholesale auctions nationwide and uses them to find an accurate, up-to-date value for your used car or truck. To learn the Black Book appraisal value of your used vehicle, simply follow the directions below. It’s as easy as 1..2..3!

If you do not want a new car price quote, click here  to get your Black Book used car value.

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There’s no such thing as exact pricing when it comes to your used car trade-in. The exact appraisal amount will change based on where you live, the time of the month even who does the work-up. So to control the process, work with the used car appraisal system that more dealers count on.

Coming in with a Black Book appraisal gives you credibility with the dealer. After all, those are the numbers a majority of dealers use and those are the numbers you’ll be negotiating with. And make sure to print out your Black Book appraisal and bring it to the dealer. That way the dealer will know up front that you’ve done your homework.

Using Black Book to Appraise Your Used Car

One more thing. The Black Book appraisal you receive doesn’t replace the actual on-the-lot appraisal. The final price may be lower (or higher) on that day based on market trends and your used car’s condition. Good luck!

We take privacy seriously. By submitting your request, you agree that you are subject to our privacy policy and terms, and that an Internet dealer or their representatives may call you using an automated telephone dialing system or automated voice message. Your agreement is not a condition to the purchase of any goods or service.

Your Vehicle s Trade-in Value: The Real Truth! #car #and #driver

#trade in value car

Your Vehicle’s Trade-in Value: The Real Truth!

Car dealers have a bad habit of telling you they’re giving you more for your trade-in than they actually are. They do this by artificially inflating the price of the vehicle you’re purchasing, then artificially inflating the trade-in allowance to make you think you’re getting a tremendous amount for your car.

In reality, all they are going to give you is wholesale value. Just ask yourself this: Why should they buy a car from a customer for more money than they can buy a similar car for at a dealer auction? A car dealer is no different than any other merchant in that they have to buy inventory to resell. Just like the grocery store owner, they have to buy at wholesale and sell at retail in order to make a profit. If they can’t make a decent profit they’re out of business.

The problem is that I’ve never met a customer who is satisfied with wholesale value for their trade-in. Everybody thinks their car is worth way more than it really is! It doesn’t help when Blue Book and others list unrealistic values for most vehicles. The only way to get more than wholesale value is to sell the vehicle privately.

Car dealers even have terms to differentiate between the real amount they are putting in a trade (ACV) and the fake number that they list on your sales order (Over Allowance). ACV stands for “Actual Cash Value.” They have these two terms so that when they are discussing the deal between management and salesperson, and when they are calculating their profit after a deal is complete they can differentiate between the real number for the trade and the false, inflated one!

So what happens when you trade a vehicle to a car dealer is that they’ll inflate the selling price of the vehicle you’re buying and then artificially inflate the trade-in allowance so you think you’re getting a high trade allowance. It’s all “Smoke and Mirrors!”

If you’re buying a used vehicle they will have the price jacked up high enough over their cost to allow them to show you an artificially inflated trade-in allowance and still make a decent profit. In the case of a new vehicle they will start with the sticker price, and even add the rebate if any into the pot to give them some extra room to over inflate the trade-in allowance.

If you’re buying a new vehicle always tell them to put the rebate aside until after the deal is agreed upon. Then, and only then do you subtract the rebate. Otherwise you risk losing the rebate in a jumbled up mess of numbers!

This is why I recommend on this website to always negotiate the selling price without the trade-in. Spring the trad-in on them after you have agreed to a price on the vehicle you’re buying. This is the only way you can know for sure how much they are actually giving you for your trade. The car sales person won’t like it, but so what. No one says you have to do a car deal their way. Their way will usually cost you more money!

If you tell them up front that you have a trade-in they will always hold back some money in the selling price so they can show you – on paper – an inflated trade-in allowance. The “price difference” will be the same in both scenarios, but the latter always looks better on paper to the customer even though it’s all BS!

Doing car deals in this convoluted way is not all the car dealer’s fault. As I mentioned earlier, most customers have an inflated opinion of what their trade-in is worth, so in order not to make the customer mad the dealer will show them on paper what they want to see. a high trade-in allowance, even though there is absolutely no way a car dealer could or would pay that amount for the trade.

What a Crazy System!

Nada car values – How to use Nada guides to get MAXIMUM trade-in dollars! #cars #for #sale #qld

#nada used car values

Nada Car Values

Nada Used Car Value

Learn to use Nada car values, Nada used car price guide to MAXIMIZE your trade-in value, research used cars with “Consumer Retail Edition” of Nada book is what this page is all about!

Nada stand for National Automobile Dealers Association. Nada Guides is another leading Used Car Valuation book you should get familiar with.

Depends on your physical location, and your local dealership’s preference. Some places used Nada book to determine Car Trade-In Value. they are different than Kelly blue book, you generally get HIGHER value for your trade than blue book value, so it’s in favor of you!

Nada car values information is OPEN to general public, unlike Black Book Value which is ONLY reserved for industry users like car dealers, financial institutions etc.

Nada car values guide is known for their BRIGHT orange color book that details:

* Average loan value

* Average trade-in value

* Average retail value

In different regions of the country. The numbers in the book reflect ACTUAL transactions at the dealerships.

Unless you are in the automotive industry, you wouldn’t be able to access the “The Official Used Car Guide” which is for dealer-only, thin pocket book published monthly.

However, there is a consumer retail edition of Nada used car price guide published quarterly, you can purchase through Online Book Store and research on used car market price in the United States.

Nada Used Car

Value Classification

Make sure you properly classify the car based on miles and options, conditions etc. Go to nadaguides.com and browse under Used Car section.

I’d like to remind you that even the values with NADA used card guide are very close to the dealer book value, this is still a guideline.

Be prepared to get a lower quote when you DO take your vehicle to a car dealership for Used Car Appraisal. Check out the used car valuation variables section to find out why you’re getting a low number than the book value.

If you are interested in knowing approximately how much is your car worth, go to NadaGuides.com and select the body style, vehicle make, year and model information etc for detailed pricing information.

Are you selling your car

to dealers or private parties?

If you are in the market of buying or selling your car with dealers or private parties. I strongly suggest you get a copy of

Nada Guide Consumer Retail Edition from Amazon Book Store. The book gives very clear instructions on how to determine the classification. Read it carefully so you don’t end up paying too much or selling for less.

One last thing I’d like to point out that you will see the loan value in the Nada used car pricing guide refers to what the bank will loan for the car.

Dealers know banks will only finance loan value. So the dealer will sell the car for loan PLUS X amount of dollars for ADDED PROFITS.

By having the Nada guide book in your hand, you are in a much better position to negotiated and WIN by the end.

Other Book Guide You May Not Know About

Did you know that dealers use Black Book to determine used car values and that’s the MOST common way to appraise used cars wholesale values.

If you live in Canada, used Canadian Black Book as the official guide.

Maximize Your Car Trade-In Value with These 5 Tips #honda #car

#trade in value of car

5 Ways to Increase a Car s Trade-in Value

The day had finally come and it was time for me to sell my car and obtain an auto loan to buy a brand new vehicle. My old, battered Honda Civic was still in great running condition, and with nearly 180,000 miles on the odometer, had accompanied me on many journeys. But it had seen better days, and the rust, the peeling paint, the nicks and the dents all but convinced me that its trade-in value would be modest at best, backed by all the research I did on its overall worth.

What came as a surprise upon selling it was that I was offered nearly double its Kelley Blue Book trade-in value (and this was after my generously sentimental appraisal of my old four-wheeled companion). That was last year, and some reliable sources have since informed me that the car has had not one, but two possible owners since I sold it, a clear indication that it s further retained what value it still has.

I discovered that day that the trade-in value of my car was much higher than I expected due to a number of relative factors and, that I underestimated its said value due to being misinformed about trade-in values in general.

Granted, it fetched a higher dollar amount since I sold it instead of trading it in, but that s OK. If you re looking to part ways with your vehicle, don t go unprepared. When you understand what affects your car s worth, you ve got a clear path to knowing how to maintain or even raise its value. It can earn you more money for your old ride, therein saving you money when upgrading to a new one, especially when an auto loan is concerned.

How Are Trade-In Values Determined?

To calculate trade-in value, visit the Kelley Blue Book website. You ll be asked to enter the make, model, year, mileage, features and condition of your car, plus whether you re looking to trade it, sell it or if you re just curious for a dollar figure.

But the Kelley Blue Book price goes beyond those simple details. Priced high or low, the trade-in value of cars takes into account other important details.

1. Brand

What s really in a name? A whole lot, according to the writers at High Gear Media. The first name of a vehicle can have a tremendous effect on its resale value, regardless of the condition or quality of the vehicle in question, they said. So, even if your Geo Prizm or Ford Pinto is in tip-top shape, it probably won t command that much coin in the trade-in process.

On the other hand, marques relied on for their reliability namely, Japanese automakers like Honda, Toyota, Subaru and Mazda do demand high resale values, as do many luxury car makers.

2. Transmission

Despite claims that they re better at connecting the driver to the car and to the road, stick shifts have declined in popularity in recent years in favor of the more passive P-R-N-D-3-2-1 of an automatic transmission. In general, an automatic transmission will recoup its cost, typically between $1,000 and $2,000, writes High Gear Media.

And while manual transmissions won t exclude you from trading in, it can be made more difficult due to their decreased demand.

3. Paint, Tech and Mods

Your car s garishly neon pink color is for few people in this world of freeways lined with sober, silver-hued vehicles. So too might be your car s super-hi-fi stereo, which could actually backfire on the resale value if you spent more on it than the car.

Though your Toyota Corolla might hold a solid auto trade-in value, aftermarketing it into a super-modified, super-charged, super-rimmed Formula 1 wannabe won t do you any favors on the resale front. Upgrades and options can detract from a car s value.

4. Mileage

It s worth repeating that mileage affects your car s worth. Even when the exterior, interior and mechanical conditions are ideal, too many miles means a shorter lifespan for your car, and will be reflected by low trade-in values.

Getting the Best Car Trade-in Value

According to Edmunds.com, a new car depreciates in value up to 9 percent in the first minute it s driven off a dealer s lot. After five years, your car holds only 40 percent of its true market value and that s without all the other considerations that can reduce its trade-in value.

Before taking your car to sell or trade in, consider spiffing it up with five of these value boosters.

1. Make Repairs

From major engine problems to minor maintenance issues or cosmetic, paint or upholstery defects, a vehicle in solid running order is one of the most fundamental value boosters. The goal is, after all, to sell your car so someone else can drive it.

Nationwide suggests talking to your mechanic to see if repair costs will outweigh trade-in value. No need to fully restore your car, but a vehicle in like-new condition makes a good lasting impression.

2. Keep It Clean

Wash your car! As well as wax and detail it, too. Appearances count, and if the first thing a buyer or dealer sees is a filthy car, he won t even bother looking under the hood to see what s inside. A few hundred dollars (or less) for a quality car wash could increase the value of your car by thousands.

3. Keep Records

Websites like Carfax.com will have your vehicle s history on file based on its VIN number. Take it to the next step by saving copies of your maintenance and repair receipts. Document everything from oil changes to servicing.

Documenting the vehicle’s service history can increase its value by showing that it’s been well maintained, according to Nationwide.

4. Get It Appraised

Kelley Blue Book or NADA guides can only estimate what your car is worth. Contact a professional appraiser for a full inspection and true valuation of your vehicle. In tandem with repairs made from your mechanic, this will give you more bargaining power when going to trade in your car, and hopefully more value for your ride.

5. Don t Settle

If you ve learned to not take the first offer that comes along from a dealer when shopping for a new car, don t settle for the first dollar figure given to you on a trade-in. One of the best ways to increase the trade-in value of your vehicle is to shop your car around to several places and people for the best offer you can get. You never know when the next dealer will give you top dollar for your investment. And remember: it is an investment.

I realized that my car was worth more than I expected, even in its battered state. If I had done my homework and taken the steps above to improve its resale and trade-in values, I might have gotten an even higher offer.

Remember this when it s time to trade in your vehicle. You might miss the times you had together on the road but you won t miss the added savings your old friend brings you when it s time to buy a new vehicle.

Determining the Trade-in Value #car #magnets

#car trade in value

Pricing Your Car

Online ads make it easy to see what other people are asking for the same type of car.

В­TВ­he most important thing you must remember before you decide to sell your car is that you generally can get a lot more money by selling the car yourself than by trading the car in at the dealership. If you do decide you want to trade in your car at a dealership, beware of two things: a very high trade-in value and a very low one.

According to Cars.com. when a dealership offers you a high trade-in value for your vehicle, it will most likely use the price against the purchase of your new car. The dealer will cover the loss on the used car by making you pay a higher price for the new car. Thus, you won’t be saving any money. If the dealer offers you too little for your trade-in, it may suggest that you’re getting a low price for the new car. Remember that you can negotiate a fair trade-in price at a dealership, but know that you will probably get a higher price selling the car on your own.

The best way to price your car is to know what other sellers are asking by looking at online ads as well as print ads.

You can also find the suggested retail value for your car. The best way to find out this information is by using a common reference guide such as the Kelley Blue Book or the NADA Gold Book. which are available in the reference section of most libraries as well as online (including at Cars.com ). These books include domestic and foreign cars that are 21 years old or newer.

Another good way to determine a car’s price is to find out what wholesale price dealers are paying for your car at auction. The Black Book is one of several guides that provide this information. Black Book features wholesale prices on used cars and motorcycles from as early as 1946 to the present. With all this information in hand, you will be able to determine a fair and reasonable asking price for your car.

Finally, be sure to leave a little room in your asking price. In other words, ask for slightly more money than you are actually willing to accept. For example, if you want to get $15,000 for your car, you can list the car at $15,500. Then, if you have to go lower in price, it won’t be a big loss. After you’ve decided on your asking price, it is time to make your car attractive to buyers.

Trade-In Options for Your Used Car #car #sales #ireland

#trade in your car

Trade-In Options for Your Used Car

1 of 4

Trading in an old car was once the Achilles’ heel of car buying, exposing owners to lowball offers and complicated negotiations. But happily, the process now can be more lucrative and user-friendly. From up-front price quotes to guaranteed trade-in values to car-buying consultants who handle the entire transaction via the Web, dealers are providing smoother transitions between your old car and your new one.

Shoppers love the convenience of trading in, since it completes all auto-related chores in one dealership visit. They avoid the headache of selling their old car and, as a bonus, the dealer handles all the DMV paperwork. And in some states, trading in can provide a break in sales tax. Our article, “What New Car Fees Should You Pay?” explains this in more detail.

But what if you were offered less than you expected for your car? Your best bet is to sell it yourself, but that takes time and perhaps more effort than you had in mind. Here are a few alternatives to trading in your used car at the dealership.

Before you begin exploring trade-in alternatives, you should have a baseline figure on what your car is worth. A good starting point to assess that worth is to use the Edmunds used-car appraisal tool. Also, check online classified ads and find cars comparable to the one you want to trade in. This helps establish your car’s current value. Remember that trade-in prices are lower than private-party and dealer retail prices.

Here’s a round-up of trade-in alternatives for consumers. We ranked them in alphabetical order:

AutoTrader’s Instant Trade-In Offer: Long known for used-car classifieds, the AutoTrader Web site now offers to appraise your trade-in. give you an up-front price and connect you with dealers. Input a few details about the car and then a few minutes later, you’ll get an e-mail with an estimated value. The site lists dealers who will either give you a check for your car or a value for trading it in on a new car. Restrictions apply, but it does present a stated price that might give you a greater sense of confidence before you go to a dealership.

Make sure you honestly answer the questions about the car’s condition level, because the offer is subject to change when the participating dealership sees the car. While it is nice to get an instant offer, the “instant” part only applies to the e-mail you get: It actually takes longer at the dealership than a typical trade-in appraisal. This is because the dealership will conduct its usual inspection and then has to input its findings in the AutoTrader tool to verify the figures.

AutoNation Direct: AutoNation Direct is the online arm of AutoNation, the country’s largest auto dealership chain. One of its car-buying consultants will appraise your car based on your description of its condition and other factors, such as mileage, and give you an up-front price. This removes the negotiating that car buyers dread. The entire transaction can be concluded at the car buyer’s home or office, including the trade-in. Here’s more about AutoNation Direct’s pricing system .

It’s important to understand that AutoNation Direct isn’t trying to distinguish itself by offering the best trade-in prices, says Simon Smith, its national sales director. The main benefit is what Smith calls a “protected buying experience” that is free from negotiating pressure. While Edmunds.com hasn’t itself used the AutoNation Direct trade-in process, many car shoppers give the service high marks.

CarMax: This used-car superstore has more than 100 outlets in 27 states and promises, “We’ll buy your car even if you don’t buy ours.” Edmunds has used this service many times when selling long-term test cars and we’ve often been pleasantly surprised at the high prices CarMax has offered. Sometimes the used-car chain offers us less than we expected, but it at least gives us a guaranteed back-up plan and we can decide whether it is worth our time to try and improve on the offer. As one CarMax salesman once told us, “Our checks don’t bounce.”

Inspection takes about 30 minutes and the trade-in offer is good for seven days. Some customers have found that the best way to dispose of their old cars is to negotiate a deal for a new car elsewhere, then sell their old one to CarMax, where the prices are typically better than at a traditional dealership. Another effective strategy is to get the CarMax estimate and list the vehicle for about $1,000 over the CarMax offer in a free online classified. If the vehicle doesn’t sell in six days, you can take it back to CarMax and sell it there before the offer expires.

Factory Trade-In Programs: These alternatives are really for a future trade-in, not the current one. If you buy a new Subaru or Tesla, the car comes with a guaranteed trade-in price. For example, Subaru’s Guaranteed Trade-In Program states how much a Subaru dealer will give you for the car when you bring it back later as a trade-in. For some, this removes the doubt about the impact of depreciation. The buyers can, in a sense, see into the future and know what their new car will be worth as a trade-in. This trade-in price is available for six years.

If you finance your Model S electric vehicle purchase with Tesla (admittedly, a small pool of people), the company guarantees that the car will have “the top residual value of any high-volume premium sedan brand (Audi, BMW, Mercedes or Lexus)” after three years of ownership. Buyers will get a “resale value guarantee” letter shortly after they purchase the vehicle, according to Tesla. The method to calculate the value and to cash in the offer is somewhat complicated and is outlined on the Tesla Web site.

Will You Save Sales Taxes if You Trade-In Your Vehicle? Adam Goldfein #book #value #car

#trade in vehicle

Will You Save Sales Taxes if You Trade-In Your Vehicle?

Depending on where you live (see the list below) your trade-in vehicle(s) may be exempt from Sales Taxes.  For example, if you are purchasing a $30,000 vehicle and are trading a $10,000 vehicle, you would only pay sales tax on the difference – $20,000.

So remember, if your trade is exempt from sales taxes and you are considering selling your vehicle to another party – e.g. selling it privately or to a different dealership from the one you are planning on buying a vehicle – you will be losing that tax break.

For example, if you were to sell your $10,000 vehicle on the Internet to a private party it would be the same as receiving $9,345.80 as a trade in (if your Sales Tax was 7% for example). The reason being that you would be saving another $654.20 in Sales Tax savings from trading.  Put another way, if the dealer offered you $10,000 – it would be the same as you selling your vehicle in the private market for $10,700 (if your Sales Tax was 7% again).

So what happens if your State is one of the 12 States that does not exempt the trade-in from Sales Tax? In that case, whether you trade in your vehicle or not, it has no effect on the Sales Tax you pay. You would pay the full amount of Sales Tax on the vehicle you are purchasing. If you are buying a $30,000 vehicle and your trade is worth $10,000; you would still pay Sales Tax on $30,000.  As such, residents of those 12 States end up paying more in total for their vehicles.


Used Car Trade-in Values Expected to Increase in June #used #cars #seattle

#used car trade in value

Used Car Trade-in Values Expected to Increase in June

2009 Chrysler PT Cruiser

If you re planning on trading in your used vehicle for a new car or different used vehicle soon, you may want to wait until June. The National Automobile Dealers Association says that compared to June 2010, trade-in values of small cars are predicted to increase more than 30 percent in June.

“Strong consumer demand for small used cars is driving up prices,” says Jonathan Banks, senior analyst with the NADA Used Car Guide, in a statement. “The NADA Guide increase in trade-in values for June should come as no surprise because it reflects a shortage of both new and used cars entering the market.”


NADA s Used Car Guide also reports that trade-in values for small cars are up 18 percent through the first half of the year. Dealers are paying an average of $11,660 for a used vehicle, which is an increase of almost 30 percent since December 2008, the Associated Press reports.

Because used car values are up, sometimes it can be cheaper to buy a new car compared to the same used car .

“Fewer new cars have been produced as a result of the crisis in Japan, which has shifted consumer demand to the used car market,” Banks says. “High gasoline prices are also increasing the demand for both new and used small cars.”

If you own a small car and need to upgrade to something bigger or newer, waiting until June could help you get more for your trade.

Looking for an affordable small car. Check out the U.S. News rankings of this year’s best cars. Then, look for a great deal on a new car by checking out this month s best car deals. Also, be sure to follow us on Twitter .

Calculating Sales Tax for a New Car Purchase With a Trade-In #car #leasing #uk

#trade in cars

Calculating Sales Tax for a New Car Purchase With a Trade-In

Your car sales contract will break down how tax is calculated.

Stockbyte/Stockbyte/Getty Images

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In 42 out of the 50 states, when you trade in a car to purchase a new one, you will get some sort of sales tax credit on the value of your trade. The amount of tax you pay depends on what you are buying, what your trade is worth and your state’s sales tax policies. The dealer will calculate and collect the sales tax, but it does not hurt to check the dealer’s numbers.

Tax on Net Cost

Across most of the country, the sales tax you pay on a car purchase at the dealership will be the sales tax rate times the difference between the purchase price and trade-in allowance. The new car cost and trade value will come off the sales contract for the car deal. For example, if you are buying a new car for $25,000 and the dealer is giving you $10,000 for your trade, you will pay sales tax on the $15,000 difference. If sales tax in your state is 8 percent, the tax would be $1,200. Without the trade value sales tax on the purchase increases to $2,000.

Sales Tax Considerations

States handle the sales tax rate on car purchases differently from state to state. In some areas, the sales tax rate you pay is the rate in effect where the dealer is located. Other states require that the rate be based on your home address tax jurisdiction. The sales tax will be the same whether you pay cash or finance the purchase with a regular car loan. In most states you do not pay sales tax and do not get a tax credit on your trade-in if you lease the new car.

Trade-in Value Increase

Another way to view the sales tax reduction from trading a car — and a favorite view of car dealers — is that the reduced sales tax can be equated to a higher value for your trade-in. If the dealer gives you $10,000 for your trade and trading the car reduces your sales tax bill by $800, you are in effect receiving $10,800 for the car you are trading. If you sold the car on your own, you would not receive the sales tax savings, so would have to sell the car for more than $10,800 to come out ahead of going the trade-in route.

States without Tax Benefit