Tax Benefits of Trading in Your Vehicle

Thinking of trading in your car? It might not be a bad idea. Not only does trading in make getting a new car much easier, but it can also help you save a lot of money. During the GMC financing process, it’s important to know how trading in your vehicle can open up avenues for tax benefits. Here’s how sales tax works when you trade in your car.

Tax Credits on Trade-Ins

Every time you buy a car, you’re required to pay an additional sales tax, which varies by state. In Louisiana, the vehicle sales tax is four percent of the price of the car, and there can be additional local taxes of up to six percent.

Fortunately, most US states offer a tax credit on trade-ins, and Louisiana is one of them!
You can lower the total sales tax amount due on a new car by trading in your vehicle. That’s because when you trade in a used car, our dealership will offer you a credit that can be deducted from the price of a new car, and the sales tax won’t be calculated until after the credit is deducted.
Basically, the credit issued for your used car will be deducted from the price of the new car you want to buy, and the sales tax will be calculated from the reduced price rather than the full price.
If trading in is an option for you, it’s a great way to simplify the process of buying a new car and potentially save a lot of money!

Financing at Alford Motors

At Alford Motors, trading in your vehicle is one way to gain access to our complete inventory of new and used cars while staying within your budget, but we have plenty of other finance options for those who qualify.

Our first priority is getting you into the perfect vehicle, no matter what your budget is, so consider trading in your used vehicle or inquiring about financing options at Alford Motors before you buy your next car.

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