If a black book worth is 12,000 as well as we owe 12,000ish… is it an next to traffic or do they supplement a 12,000 we owe to a sum of a brand new car? we goal this creates rather of since, we do not know how to put my subject in to difference upon paper.

In almost every state:

(Price of car you are buying – trade value) = net taxable price of the car. To that number you add the payoff amount + sales tax on the net taxable price + title and doc fee to get the total amount financed.

The reason I included this formula is to show you that it’s NOT a wash trading in a car with a similar payoff amount. You get to deduct the value of the trade from the price of the new car before calculating sales tax. So, if you are buying a $20,000 car and trading in one worth $12,000, you only pay sales tax on the $8,000 difference, not on the $20,000 new car price.

Check with your dealer to see if you get "sales tax credit" in your state. If so, trading in can save you a lot of money in sales tax.

if cars worth 12k and you owe 12K its a wash…you pay full new car price,,theres no trade in..