If you’re shopping for a new car, you should think about trading in your older vehicle. This can offer you a variety of benefits, including those related to taxes. Here, our Volkswagen finance department goes over the many advantages.
A Big Sales Tax Reduction
Sales tax—which is 6.25 percent in Massachusetts—is often forgotten when budgeting for a new car. In fact, it can raise the price of a vehicle by hundreds, or even thousands, of dollars. However, there is a way to lower sales tax.
When you trade in a vehicle, it reduces the price of the car you are buying, therefore lowering your sales tax. Let’s say you’re looking at a new car that’s $30,000 and your old vehicle is worth $10,000. By trading your car in, the cost of the new car is now $20,000, which trims the sales tax substantially.
More Reasons to Trade in a Vehicle
Aside from the tax benefits, there are other reasons to think about using a trade-in. First of all, this can supply you with some of (or most) of your down payment.
The more money that can be paid initially, the better off you will be down the road. You won’t have to take out as large as a loan and your monthly payments will shrink. With less money to pay back, you might be able to pay off the loan a lot faster.
Get the Trade-In Process Started at Patrick Volkswagen
If you’re ready to trade in your car for something new, the first thing to do is to find out what it’s worth by using our online Volkswagen trade-in estimate calculator. Then, visit Patrick Volkswagen, where we will help you find the perfect replacement.