I understand you receive tax credits on a trade in if you buy a new vehicle from that same establishment but what if you sell to a vendor like vroom or carvanna. Are you eligible for tax credits when you buy/lease your new vehicle? Or are these separate transactions now ?
Every state has different laws and methods. However you technically never own the vehicle during a lease. You would never be eligible for those tax credits. The financing bank would get them
So if you sell your owned car and then lease you wouldn’t get tax credits?
Or are you saying if you sold your lease and then bought a car?
Let’s just be clear - when you trade in a car, you aren’t getting a “tax credit.” The value the dealer is giving you for the car is credited against the selling price of the new car, as in subtracted. Most states do not tax this value, but some do and will tax it as they do incentives and as if it is part of the selling price of the car.
People use the term “tax credit” too liberally and end up confusing themselves.
If you sell your car to CarMax or Carvana, it is a totally separate transaction, in which you receive money. It has nothing to do with the purchase or lease of a new car from a completely separate dealer with regard to a wholly separate transaction.
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He probably meant sales tax credit. You do get it in most states, not in VA though.
I was speaking more for Texas sales tax law on leases. The finance companies that do transactions in Texas receive Sales Tax credits when a vehicle is returned to a dealer. In Texas, leased Vehicles are Taxed 6.25% on the full sales price after Discount and Incentives. The Finance companies, Owners/Lessors of the of the Vehicle, get a Sales Tax credit from the State of Texas based on the RV or Trade in Value, not exactly sure what value is used. Those Finance companies are able to apply those Tax credits on a future lease to reduce Tax obligations.
Not sure what state the OP resides. But regardless he would not be eligible for sales tax credits in any scenrio selling and buying from seperate Entities.
Ehh, it’s probably because I’m more familiar with the technical terms. It’s still not a “tax credit” in the sense of what is defined as one. It’s a credit toward selling price (as in credit or debit), reducing the selling price. Some states don’t tax it, but others view it like down payment money and still tax it (like in VA).
Assets = Liabilities + Capital
Thanks, basic accounting from a balance sheet!
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I wanted to throw out my breadth of knowledge as well.
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You cast a very wide net of knowledge there. 
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That’s the one and only thing I remember from accounting class, but at least it’s the most important!
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Thanks. I am aware the trade value deducts the cost off the the new auto purchase (taxable amount) just making sure I’m not leaving anything on the table. Although a few years back I traded in a lease vehicle (bought out by dealer) and bought a jeep. The jeep dealer sent me a check for 1200 to make up the tax credit that was not deducted during the sale.
That’s called an early Christmas present
In your lease deal with the jeep, more than likely you had equity when the dealer bought it out that was returned to you by the dealer
Naw. There was negative equity actually. But either way I dont beleive I’m getting any break in taxable amount with my vroom deal.
In texas you do not get Tax credits on a leased vehicle… If a dealership screws up and does (seen it happen before) they get a chargeback later on down the road…
You can get Tax Credits in Texas when the Leasing company offers them (ex. Instead of paying 6.25% you pay 1.25% + L&M Fee)
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You do get some tax credit relief when trading in an owned vehicle for the difference between trade and sale price of new vehicle lease or buy.
$10,000 difference is a savings of $625 in tax.