Auto Trade-In Calculator
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Your existing used car price, If you like to sale on your own: $26,750.00
If you accept the dealer’s Trade-In offer, you will be taxed only on $20,000.00, instead of being taxed on $45,000.00. A 7% sales tax on $20,000.00 is $1,400.00, while a 7% sales tax on $45,000.00 is $3,150.00. The taxes on that $45,000.00 car are $1,750.00 higher if you don’t accept the trade-in offer. Thus, if you decide to sell your car instead of trading it in, you will need to get at least $26,750.00 for it to cover the additional sales taxes.
If you accept the dealer’s Trade-In offer, you will be taxed only on $20,000.00, instead of being taxed on $45,000.00. A 7% sales tax on $20,000.00 is $1,400.00, while a 7% sales tax on $45,000.00 is $3,150.00. The taxes on that $45,000.00 car are $1,750.00 higher if you don’t accept the trade-in offer. Thus, if you decide to sell your car instead of trading it in, you will need to get at least $26,750.00 for it to cover the additional sales taxes.
Sales Tax
What is car trade in ?
If you're looking to buy a car, you may have an existing vehicle that you'll no longer need. One option is to trade it in at the dealer where you're buying your new car. Trading a car in at a dealership may require far less time and effort than selling to a private buyer. The dealership handles all the paperwork, and you won’t have to deal with strangers inquiring about your car or trying to test - drive it. Almost every state allows you to deduct the amount of your trade - in from the sale price of your next vehicle — before tax.
How to Use this Auto Trade-in Calculator?
This calculator is used to find out what price you should sell your existing used car to a priva te party given that you do not want to sell it to the dealer. In other words, if you decide to sell your car instead of trading it in a dealership , this calculator will help you determine the minimum sales price you must receive from the private party.
Let’s assume that you are to buy a vehicle for $45,000 and the dealership offers you $25,000 for your existing used car that you want to trade-in.You will only be taxed on $20,000. If the sales tax rate in your state is 7 percent, the savings add up quick ly.Rather than pay $3,150 in tax for a $45,000 purchase, you will pay only $1,400 in taxes.
Here is how you can use this calculator.
Vehicle Sales Tax (in your state):
Enter 7% or your state's sales tax. Your input should be greater than 0% and less than 99.999%.
New Vehicle Price(before tax):
You can enter the new vehicle purchase price that dealer is asking you to pay. For example, enter $45,000 as the price of your new vehicle. Your entry has to be greater than 0.
Dealer Trade-in Price for your used car
If the dealer is offers a price for your existing used car, enter that amount. For example,enter $25,000. Your entry has to be greater than 0.
Once you entered all the numbers as stated above, click on “Calculate” button. The calculator will show the sales price of $26,750.00. This means that you must sell your car to a private party for at least $26,750.00. In other words, selling your car to a private party for a price of $26,750.00is equivalent to selling your car to the dealer for a price of $25,000.00 under the trade-in deal.