I’m thinking about trading in a Ram 1500. If Payoff is 60k and trade in value is 60k, you do save the sales taxes? Or do you have to pay off the car first in order to save on the taxes?
This used to be the case in NJ, but it’s not anymore. I had one deal recently where it still worked, but another one had a chargeback. I looked it up, and it had indeed changed (and apparently no one noticed prior to that).
So you have to pay it off first? Can you send me a link to the MVC info? Thanks!
Huh? You can get a tax credit if you buy a car and then trade it in, but then you’re paying sales tax on the buy-out and negating the savings.
Wait, I forgot to mention that I’m financing this car, not leasing. I’m a moron…
Still doesn’t matter - you have to pay sales tax on $50,000 to get a $50,000 credit on sales tax. Even if your buyout gives you some equity, even $5,000 of equity will only net an extra $350 in savings. It’s not worth it.
I already paid the sales tax at the time of purchase of the Ram. If I trade it in now, I expect to get 0 equity. So that means if I trade it in, the sales tax I paid is just lost?
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