Trading In Your Vehicle! (Page 3)
autoXcite Appraisal Services
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Referring back to our previous example:
If your "trade in" was valued at $5,000 and the trade difference was $10,000 after your trade in, you'll still receive the tax break but will have to finance the balance owed on the trade in .
If you had a $5,000 balance, you then add that balance (whatever it may be) to the trade difference amount of $10,000 bringing the total financed amount to $15,000 (plus the state tax, title registration and applicable dealer fees).
Following so far?
Here's what the mathematical equation might look like:
Purchase Price . $15,000
- Take the Trade In. $5,000 ACV (Actual Cash Value)
- Equals Trade Difference Amount. $10,000 + your Trade In
- Plus Tax of Trade Difference Amount $500 (State Tax, i.e. MA 5% would = $500)
- Plus Pay Off (if applicable) $5,000 (balance owed to a lien holder)
- Equals Total Amount Financed $15,500 (plus Registration & Dealer fee's)
The registration fee includes the new title issue and either the transfer or new plate fee. The dealer fee varies on the documentation, acquisition; VSI and so forth. This will depend on the individual dealer (and also the bank, if financed).
We recommend you pay the state taxes and not finance that amount, if you're financially able to do so. Why pay interest on taxes?
IF YOU FIND THE PURCHASE PROCESS INTIMIDATING YOU ARE NOT ALONE.
That's why we've created autoXcite to help you
