Trade in sales tax saving

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Hello, new here and never looked at leasing before.
Typically for buying a new car, trade in works that with 10% sales tax, trading in a 20k car saves you 2k in sales tax because the purchase price is lowered.

Does that same tax saving happen for trading in a car I owned (not a leased or financed car) , for a new lease?

Thanks for your knowledge sharing

For WA yes, for CA no. It’s state dependent.

Basically it lowers your payments and no back tax is applied. Tax for the payments will still apply.

Reading the link below it implies that if you trade in a leased vehicle for 8000, you get 8000 worth tax saved even if you owe $8000 on it. Neat

https://dor.wa.gov/education/industry-guides/auto-dealers/trade-ins

I am in WA. Is it a good idea to trade in? How does it work with a 20k car? It would be more than the one pay amount on a lease.
Thanks!

then tax is zero. nothing else
HOWEVER WA has an EV Tax rebate , so your point might be moot.

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