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Computing Basis of New Vehicle When Trading in a Vehicle

When you trade in a vehicle for another one, how you compute the basis of the new vehicle hinges on your business use percentage of the old vehicle.

If you used your old car 100% for business and subsequently trade it in for a new one, your basis in the new vehicle is equal to the remaining basis in the old vehicle, if any, plus any other amount you paid for the new vehicle.

Less than 100% Business Use

If you used your old vehicle less than 100% for business, a special trade-in adjustment is required to establish the depreciable basis of the new vehicle. Keep in mind that this adjustment has you pretend you used the old vehicle 100% for business up to the trade-in date even though you actually did not.

This adjustment is only used for determining the depreciable basis of the new vehicle, not for figuring gain or loss.

Here are the steps to follow if you used your old vehicle less than 100% for business:

Determine excess depreciation:

1. Figure the amount of depreciation you theoretically would have been allowed to deduct for the old vehicle, from the date it was placed in service up to the date of the trade-in, had it been used 100% for business.
2. Jot down the amount you determined in Step 1.
3. Next, add up the amount of depreciation you actually claimed on your old vehicle based on your tax returns .
4. Finally, subtract the amount of depreciation in Step 3 (what you actually claimed) from the amount figured in Step 1 (what you theoretically could have claimed). The difference is excess depreciation and is the amount used in the basis computation for the new vehicle explained below.

NEW VEHICLE

Basis computation:

(A) Start with the basis of the old vehicle before deducting the excess amount figured above. In other words, this would be the original cost minus the actual depreciation you claimed on your tax returns.

(B) Add any additional amount you paid to acquire the new vehicle to the basis of the old vehicle figured in (A) above. For example, if your forked over some cash in addition to your trade-in.

(C) Subtract the excess depreciation figured under the steps listed for the old vehicle from the total figured in (A) and B). above.

(D) The depreciable basis in new vehicle equals: (A + B) – C.

Refinance Auto Loan – When to Refinance Your Car Loan #kbb #car #value

#refinance car loan
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5 situations when it makes the most sense to refinance your car

By Russ Heaps • Bankrate.com

With interest rates remaining so low, an auto refinance may have crossed your mind — and it could be a good idea.

Doing so could save hundreds of dollars each year and sometimes thousands over the life of the loan.

If your current car loan interest rate is above 6%, you might want to investigate refinancing.

Unlike refinancing your mortgage or even consolidating credit card balances, refinancing your vehicle loan is usually quick, easy and painless. No appraisal will be required. And usually there are minimal, if any, fees.

But refinancing is not for everyone. It makes sense if, since the original loan, you find yourself in one or more of these five situations:

• Interest rates have dropped. If interest rates have dropped more than a couple of points since purchasing your vehicle, you could save some money. In this case, loans at refi rates are considered used car loans and as such, the rates usually are higher than new car loans. Remember, even a percentage point or 2 can make a big difference over the life of the loan.
• Your credit score has improved. If you had a few negatives on your credit report — or had no history of credit — when you bought your car, but your credit is healthier now, you may qualify for a lower interest rate. Interest rates of 18% or more for consumers with a thin credit history are common. Several months of on-time payments could entice a lender to refinance that loan at a lower rate. Steve Schooff, a former spokesman for Capital One Auto Finance, says consumers should check their credit scores before refinancing.

Your credit score has a major influence on auto loan rates. Get your score for free at myBankrate .

• You didn’t get your best rate when you purchased. Just because you had a high credit score and unblemished credit history doesn’t mean you got the best rate you could have received when you purchased the car. Dealer-sourced vehicle loans commonly carry a higher rate than the consumer deserves because the consumer simply didn’t know better. The extra money is a profit source to the dealer, like rust-proofing or extended warranties. When this is discovered after the fact, it may pay to refinance.
• Your personal financial landscape has deteriorated. If you have had a financial setback and need to reduce your payments, refinancing could be a solution by increasing the loan term, thereby lowering the monthly payment.
• Your car lease is expiring and you want to purchase the vehicle. When you fulfill the terms of a lease, you typically have the option to buy the vehicle.
• Finding a lender that refinances is the easiest step in the process. Credit unions do big business in vehicle loan refinancing and they have money to lend. You will need to open a checking or savings account at one if you’re not already a member.

How much can you expect to save? According to Schooff, if one year ago you took a \$25,000 auto loan for five years at 7.75% interest, refinancing the balance today at:

• 4.75% for the remaining four years of the loan would save \$1,373 — \$28.60 per month.
• 5.75% for the remaining four years of the loan would save \$906 — \$18.88 a month.
• 6.75% for the remaining four years of the loan would save \$448 — \$9.33 a month.

Refinancing isn’t an option for everyone. If the vehicle is worth less than the loan balance (upside down), a lender probably won’t take the chance and at the same time lower your interest rate. You can determine the current value of the vehicle through Kelley Blue Book, or KBB.com, Edmunds.com or AutoTrader.com.

Other requirements may also disqualify you, such as the age of the vehicle and the outstanding balance to be refinanced. Capital One Auto Finance, for example, will not refinance a vehicle more than 7 years old; the amount of the loan can be no less than \$7,500 and no more than \$40,000.

It’s important, Schooff says, “that consumers determine if their current auto loan has any penalties for paying off the loan early. This will impact how much they can save from refinancing.”

Call your lender and request the current payoff amount of your loan. This is the amount of money you need to refinance. It is also the figure you’ll compare against the vehicle’s value to determine if the vehicle is worth more than the amount you need to borrow.

There is no required amount of time from the date of the original loan until you can refinance. Actually, because of the way most auto loans are structured, the majority of the interest is paid during the first half of the term of the loan. The younger the current loan is, the more money refinancing will usually save.

Once you know your payoff, you can determine how much refinancing can save each month by using Bankrate’s auto loan calculator to find your new payment, then subtract it from your existing payment.

Because most refinancing loans are fairly straightforward, decisions are usually made quickly. Schooff says Capital One Auto Finance typically gives the consumer a decision by email within 24 hours of submitting the online application.

If you find yourself upside down in your car loan and for personal reasons need to lower your payment, you may be able to persuade your current lender to modify your loan, lowering the monthly payments by extending the term of the loan or reducing the interest rate.

It’s important to act before your payments fall behind. The earlier you open communications with your lender, the better the chance of coming to an arrangement.

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When’s the best time to buy a car?

18 August 2011 by Lewis Kingston Last Updated: 22 Jul 2015

• We run through the ideal times to buy both new and used cars
• Avoid buying convertibles in summer and off-roaders in winter
• Search for a new car now at Parkers New Cars For Sale

Whenever a new plate change is due, many people are tempted into buying a new car – but is this the right time to buy?

Sometimes it’s a good idea to hold fire – timing, as they say is everything. So what are the best times to buy a new or used car? Here are our top tips:

1) Convertibles are most expensive during the summer months – so shop around in the winter when demand is low and dealers will be quiet.

2) Off-roaders are cheapest when the weather is good. This means it’s worth buying one during summer, when there will be plenty of deals around, before prices start to rise coming up to the winter.

3) If you are looking to buy during the year, buy at the end of each quarter. This allows you to put pressure on the dealer as they will be looking to complete sales and are more likely to make a deal.

4) If you want to buy a car later in the year, aim to buy between October and December. Many dealerships discount their cars strongly during these months in order to improve sales figures, and to clear the way for models arriving in the New Year.

5) The weeks around Christmas and the New Year can deliver massive savings. This period is between new plate releases and the dealerships will be quiet, so heavy cuts will be offered in order to maintain sales. Don’t be put off by pre-registered cars – there are some great bargains to be had.

6) The best time of the month to buy in is the last day or two, as the dealership will do everything they can to complete a sale.

7) Go into the showroom on a Friday. Dealerships are always quietest during the week – this means the staff will be more attentive and more likely to offer discounts in order to meet weekly targets.

8) Buy the previous generation car at the launch of the new one. The older version will drop in price and many dealers will be offering good deals in order to make room for new cars.

9) Buy at the release of facelifted models. Much like the release of a new car, the new facelifted models become the more desirable purchase and consequently dealers look to quickly sell on the pre-facelift cars in order to restock with new ones.

10) Look to buy after the release of new plates. The previous-plate cars will be discounted with the arrival of the new ones, or there may be an excess of new stock, or a run-out model, that allows leverage for a good deal.

Lastly, don’t forget to keep an eye on the market. If new or used car sales are struggling then that can give you even more leverage against a dealer, as they’ll be working harder to complete sales.

Parkers works in partnership with carloans4u, to find out more about getting a loan and an idea of what your monthly repayments could be, click here to head to our dedicated section.

Parker’s Top Tip

You can use the Parkers New Cars for Sale to search your local area for cars, while our Cars for Sale section lets you browse used cars for sale in the UK. Our Car Valuation tool will show you what kind of price you should be able to negotiate on all models. Don’t forget to get a Car History Check on any used purchase.

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When Should You Trade In Your Car? Don t Listen To What Others Say Run The Numbers Yourself

The week’s most interesting and impactful posts about financial lifestyle.

A reader writes in describing a debate she s having with her husband:

I m not sure but someplace on your site I think I saw something about how often to trade in your old car. Our SUV is a 2005 with 55,000 miles on it. My husband says its time to trade it in. He says the longer we drive it the worse off we will be. I m not so sure. We will pay cash for the difference if we trade. Can you give us any pointers?

The husband s philosophy, if I understand it correctly, is that the older a car is, the less trade-in value it will have and that s absolutely correct. An older vehicle will have less trade-in value.

But let s look at some real numbers. Let s look at the trade value of Dodge Durangos (they have a SUV, after all) from 1998 to 2006 and assume the median of the range given.

A new midrange 2008 Dodge Durango, according to AOL Autos, costs \$31,835. Let s just assume this is the price one would have paid in earlier years for a Durango. It may have been less, but probably not significantly so.

A 2006 Dodge Durango would have been owned for 24 months and would have a cash value of \$18,225. This is a total depreciation of \$13,610, or \$567 a month for the entire time of ownership.

A 2005 Dodge Durango would have been owned for 36 months and would have a cash value of \$14,062.50. This is a total depreciation of \$17,772.50, or \$493 a month for the entire time of ownership. Over that last twelve month period, the vehicle only depreciated \$4,162.50 or \$347 a month.

Let s keep going for two more years so the picture becomes clearer. A 2004 Dodge Durango would have been owned for 48 months and would have a cash value of \$12,500. This is a total depreciation of \$19,335, or \$402 a month. Even more impressive, over that last twelve month period, the vehicle only depreciated \$1,562.50 or \$130 a month.

A 2003 Dodge Durango would have been owned for 60 months and would have a cash value of \$10,512.50. This is a total depreciation of \$21,322.50, or \$355 a month. Again, over that last twelve month period, the vehicle only depreciated \$1,987.50 or \$166 a month.

What s the meaning of this data? The longer you hold onto a car, the less it depreciates each year, and thus the more cost-effective it becomes. A 2003 Durango has a trade value much less than a 2006 Durango, but if you break it down into the depreciation per month, the person owning the 2003 Durango lost much less money per month than the owner of the 2006 Durango.

Another thing to notice is that car depreciation is at its worst during the first few years of owning a car. Thus, to maximize the bang for your buck, your best bet is to buy a model three or four years old. That way, it doesn t depreciate thousands of dollars each year you own it.

What s the conclusion? The best value in cars is buying a late model used and driving it until the repair bills start seriously racking up. This plan minimizes the per-year cost of your car and gives you the most years of cost-effective reliability. If you insist on buying new (not the best move), the more years you drive your older car, the more cost-effective your purchase becomes.

Upgrading a three year old car to a new model is not cost-effective in any real way the only advantage it provides you is the prestige of constantly having a new car at the cost of many hundreds of dollars a month versus using a more cost-effective method of getting around.

How to Take Over Car Payments When Buying a Used Car #sell #used #car

#take over car payments
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How to Take Over Car Payments When Buying a Used Car

One can take over car payments or assume a car loan. It is a good idea for an individual who doesn’t have the upfront cash or money for a car. This article will show you how you can take over the loan.

Tools and Supplies Needed

• Car Title
• Proof of Income
• Proof of Residence

Step 1: Contact Loan Company

Contact your loan company and find out what will be required for the process before you go and begin it. In many instances, you will be required a down payment. So be prepared for that as a requirement and find out how much it should be before you pay it. This way you can be sure you have the money ahead a time.

Check your credit and FICO score before you go in. They will likely run a credit check on you, and you want to make sure it is in good standing. Otherwise, your interest rate may change than want the previous owner held. So be sure to find out what it is and know what to expect when you sign over the car payments.

Much like a regular loan, you will need to be “approved” before you can sign the paperwork and make a payment schedule. So that can take up to a week or two, though some do have instant results. That will depend on the credit company and how they work.

When to buy a car – Money Advice Service #nada #used #car #values

#buy a car uk
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Getting a good deal on a new or used car often depends on the time of year you buy it. Make sure you keep an eye on the calendar so that you can take advantage of seasonal factors that affect the car trade. To find out when to time your purchase, read on.

When to buy a new car

Top tip

To help you work out the car’s running costs, try using our Car costs calculator .

Choosing the best time of the year to buy a car could potentially save you thousands of pounds. Here’s what to bear in mind:

• In February and August many dealers offer some real bargains, while sales are slow as buyers wait for the new number plates coming in March and September. But If you take advantage of this lull, your ‘old’ number plates will make your car seem older than it really is, so it will depreciate faster.
• At the end of each quarter – particularly the end of June and December – dealers may be keen to hit their quarterly sales targets and more likely to offer you a good deal.
• Find out when new models or ‘face-lifted’ existing models are due out, then buy the previous version during its last few weeks in the showroom. Dealers will be want to shift this stock and be more likely to offer you a good deal. But remember that the older model will depreciate faster than the new arrivals, even though it’s roughly the same age.
• Convertibles are more desirable in the summer, so there may be bargains to be had in the winter .
• Demand for four-wheel-drive vehicles usually peaks during autumn and winter because of poorer weather, so you may get a bigger discount in the summer .
• Showrooms are quieter on weekdays so drop in on a Friday – when the dealer will also be keen to meet their weekly target. This gives you a double advantage when bargaining with the salesperson.
• Wait a few months after launch before buying a new model – by then there will be less showroom buzz about it so the dealer may well offer you a better deal.

When to buy a used car

Seasonal trends in sales of new cars have a knock-on effect on the cost of used cars. So time your purchase right and you could get a real bargain:

• March and September are the peak months for sales of new cars, often through part-exchange deals. So dealers will have lots of used cars to sell, which puts you in a strong position when negotiating.
• Dealers are also often keen to clear out used cars in July and early August in readiness for new models and the registration plate change on 1 September.
• December and January are quiet months for the used car trade. Cars aren’t on people’s minds around Christmas and the New Year so dealers and private sellers are keen to make a deal.
• Avoid buying used convertibles in the spring and summer – wait until winter when demand is lower.
• But buy four-wheel-drive vehicles in the summer – demand peaks in the late autumn and winter because of the poorer weather.

How to Rent a Car When You Are Under 25 #trucks

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How to Rent a Car When You Are Under 25

Most rental car companies allow drivers over age 21 to rent a vehicle. (Photo: Creatas/Creatas/Getty Images )

Related Articles

Whether you’re traveling for business or pleasure, there are times when you need to rent a car. In the past, if you were under age 25 and needed a rental car, you were out of luck. Because younger drivers tend to be more inexperienced, rental-car companies often were reluctant to rent to them. Even now, most major rental-car companies rent to younger drivers only with the addition of a hefty daily fee. In some cases, the fees can almost double the overall cost of the car. However, if you have the available cash, the process for renting is the same as for any other age group.

Step 1

Inquire with your company’s travel department or travel agent about corporate rental-car accounts if you’re traveling for business. In most cases, when you rent a car for work through a corporate account, the rental agency will waive the underage driver fee. Either ask your company’s travel department or travel agent to make the reservation for you, or make your own reservation using the information you receive.

Step 2

Visit the website for the car-rental agency. Enter your information into the reservation form; in general, you’ll need the pickup and drop off locations, dates the car is needed and the size of the car you want to rent. Check the box indicating that you’re an underage primary driver.

Step 3

Indicate whether you need any additional options for your rental car, such as insurance coverage or a GPS device. If you already have car insurance, your rental car may be covered under your insurance policy, in which case you don’t need to add the additional cost of the rental-car insurance.

Reserve your rental car. In most cases, you need to provide only your name, contact information and a credit card number to reserve the car. Your card is not charged until you pick up the car.

Pick up the car at the rental counter. Have your valid driver’s license and a credit card available.

Georgia MVD Paperwork When Selling a Car #car #breakdown #cover

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Paperwork When Selling a Car in Georgia

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Paperwork Required to Sell a Car in Georgia

So, you’ve got a car you want to sell in Georgia. How exactly do you go about the process? We’ll boil down some of the essentials right here!

Selling a Vehicle in Georgia

Here we’ll be focusing on the state regulations for selling a car in Georgia, but obviously there’s a lot of groundwork to be laid before you actually transfer ownership. After you’ve assessed your vehicle’s market value and condition, you’ll decide how you want to go about advertising it to potential buyers. You’ve never had more options in terms of the channels you can use, from online marketplaces to time-tested classifieds.

If you’d like to review some basic tips for selling a car, browse through our helpful Guide to Selling Your Car.

Once you’ve identified a buyer, the official title transfer is a matter of paperwork. Once the required documents are complete, your car will have a new owner.

Required Documents for GA Car Sellers

To successfully sell your car in Georgia, you and the buyer will need to sign off on several documents:

• The vehicle title. unless your car’s exempt from holding a title. You can find out more about Georgia’s title requirements at the state’s Department of Revenue website.
• If your car doesn’t need a title, you can provide its certificate of origin or the bill of sale (see below).
• A Georgia bill of sale. The Georgia Department of Revenue’s Motor Vehicle Division provides a downloadable Bill of Sale (Form T-7) that you can use for this document, but you can also craft your own. If you do, remember to include the following information:
• The date of the transfer of ownership.
• The agreed-upon cost of the vehicle.
• Your name and address. as well as those of the buyer.
• Your car’s year, make, model, vehicle identification number (VIN), and odometer reading (see below).
• A list of any liens presently on the car.
• A statement of the buyer’s agreement to purchase .

Georgia’s odometer disclosure requirements exempt certain vehicles from mileage declarations during a title transfer. For more information, see our Title Transfers in Georgia page.

If you’re not presently in Georgia and are directing a member of your family to sell your car for you, you’ll give them limited power of attorney so they can oversee the title transfer. The Georgia DOR’s Motor Vehicle Division offers a Limited Power of Attorney/Motor Vehicle Transactions (Form T-8) at its website.

Duplicate Georgia Title

If your car title is damaged or missing, you can obtain a duplicate title by submitting the following paperwork to the Georgia DOR:

You can find out more about duplicate titles (including the protocol for cases where the original title was assigned to you rather than issued in your name) on our Replacing a Lost Title in Georgia page.

Salvage Titles

Applying for a title for a car that’s been wrecked and rebuilt requires its own special process in Georgia. Along with the standard Motor Vehicle Title/Tag Application (Form MV-1), additional documentation such as the Request for Inspection of a Rebuilt Motor Vehicle (Form T-22R) and a Labor and Parts Certification (Form T-129) must be completed and submitted.

Vehicle History Reports

The savvy purchaser of a used car will obtain a vehicle history report to learn more about the car’s background, including details on past accidents, damage, and theft.

You can also order your own vehicle history report in order to gain the trust of potential buyers and hopefully sell your car faster.

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What is SQL, and what are some example statements for retrieving data from a table?

Overview

Structured Query Language (SQL) is a specialized language for updating, deleting, and requesting information from databases. SQL is an ANSI and ISO standard, and is the de facto standard database query language. A variety of established database products support SQL, including products from Oracle and Microsoft SQL Server. It is widely used in both industry and academia, often for enormous, complex databases.

In a distributed database system, a program often referred to as the database’s “back end” runs constantly on a server, interpreting data files on the server as a standard relational database. Programs on client computers allow users to manipulate that data, using tables, columns, rows, and fields. To do this, client programs send SQL statements to the server. The server then processes these statements and returns result sets to the client program.

SELECT statements

An SQL SELECT statement retrieves records from a database table according to clauses (e.g. FROM and WHERE ) that specify criteria. The syntax is:

In the above SQL statement:

• The SELECT clause specifies one or more columns to be retrieved; to specify multiple columns, use a comma and a space between column names. To retrieve all columns, use the wild card * (an asterisk).
• The FROM clause specifies one or more tables to be queried. Use a comma and space between table names when specifying multiple tables.
• The WHERE clause selects only the rows in which the specified column contains the specified value. The value is enclosed in single quotes (e.g. WHERE last_name=’Vader’ ).
• The semicolon ( ; ) is the statement terminator. Technically, if you’re sending only one statement to the back end, you don’t need the statement terminator; if you’re sending more than one, you need it. It’s best practice to include it.

Note: SQL is not case sensitive (i.e. SELECT is the same as select ). For readability purposes, some programmers use uppercase for commands and clauses, and lowercase for everything else.

Examples

Following are examples of SQL SELECT statements:

• To select all columns from a table ( Customers ) for rows where the Last_Name column has Smith for its value, you would send this SELECT statement to the server back end:

The server back end would reply with a result set similar to this:

• To return only the Cust_No and First_Name columns, based on the same criteria as above, use this statement:

The subsequent result set might look like:

To make a WHERE clause find inexact matches, add the pattern-matching operator LIKE. The LIKE operator uses the % (percent symbol) wild card to match zero or more characters, and the underscore ( _ ) wild card to match exactly one character. For example:

• To select the First_Name and Nickname columns from the Friends table for rows in which the Nickname column contains the string “brain”, use this statement:

The subsequent result set might look like:

• To query the same table, retrieving all columns for rows in which the First_Name column’s value begins with any letter and ends with “en”, use this statement:

The result set might look like:

• If you used the % wild card instead (e.g. ‘%en’ ) in the example above, the result set might look like:
• Learning more about SQL

To learn more about SQL programming, Indiana University students, faculty, and staff can register for instructor-led workshops offered by UITS IT Training. For more about IT Training workshops and other self-study options at IU, see:

For the general public, various online tutorials are available, such as the w3schools.com SQL Tutorial .

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Computing Basis of New Vehicle When Trading in a Vehicle

When you trade in a vehicle for another one, how you compute the basis of the new vehicle hinges on your business use percentage of the old vehicle.

If you used your old car 100% for business and subsequently trade it in for a new one, your basis in the new vehicle is equal to the remaining basis in the old vehicle, if any, plus any other amount you paid for the new vehicle.

Less than 100% Business Use

If you used your old vehicle less than 100% for business, a special trade-in adjustment is required to establish the depreciable basis of the new vehicle. Keep in mind that this adjustment has you pretend you used the old vehicle 100% for business up to the trade-in date even though you actually did not.

This adjustment is only used for determining the depreciable basis of the new vehicle, not for figuring gain or loss.

Here are the steps to follow if you used your old vehicle less than 100% for business:

Determine excess depreciation:

1. Figure the amount of depreciation you theoretically would have been allowed to deduct for the old vehicle, from the date it was placed in service up to the date of the trade-in, had it been used 100% for business.
2. Jot down the amount you determined in Step 1.
3. Next, add up the amount of depreciation you actually claimed on your old vehicle based on your tax returns .
4. Finally, subtract the amount of depreciation in Step 3 (what you actually claimed) from the amount figured in Step 1 (what you theoretically could have claimed). The difference is excess depreciation and is the amount used in the basis computation for the new vehicle explained below.

NEW VEHICLE

Basis computation:

(A) Start with the basis of the old vehicle before deducting the excess amount figured above. In other words, this would be the original cost minus the actual depreciation you claimed on your tax returns.

(B) Add any additional amount you paid to acquire the new vehicle to the basis of the old vehicle figured in (A) above. For example, if your forked over some cash in addition to your trade-in.

(C) Subtract the excess depreciation figured under the steps listed for the old vehicle from the total figured in (A) and B). above.

(D) The depreciable basis in new vehicle equals: (A + B) – C.