We ordered a car from Toyota and have the option to trade in our Jetta to Toyota. However, we are also considering taking the Jetta to Carmax to sell. Assuming that both places offer the same amount, my question is whether or not there are additional taxes or something on a car that you sell to carmax if you are just going to walk away with the money? Do you save anything by trading in at the dealership?
2007-03-07 03:44:53 · 2 answers · asked by Tracy 2 in Cars & Transportation ➔ Other - Cars & Transportation
I know that if you trade in your car at a dealership (in Canada anyways) you can put your plates on the new car and drive for 10 days without having to switch your insurance over..... I did find on msn.ca that there is a tax advantage, in Canada as well. It says "Trading-in may also offer a tax advantage if you are buying a vehicle at the same time....." I will put the link below....
I found another car site that says:
"Your current car's trade-in value can be used to lower the effective purchase price. Some states tax only the negotiated price minus the trade-in value, which results in a lower taxable amount and considerable savings for the buyer. Others tax the full negotiated price. If you're not sure which applies to you, ask the dealer — they're certain to know and should have no problem providing this information."
that's all I could find for US information though. Good luck!
2007-03-07 04:01:33 · answer #1 · answered by Sunny 2 · 0⤊ 0⤋
Better to clean it up, and sell it on the corner. Both Carmax and the Dealer are gonna give you less, so they can profit. The dealers make more on used cars than new, by percentage of the total sale.
2007-03-07 11:52:36 · answer #2 · answered by Ben H 5 · 0⤊ 0⤋