Upgrade Your Vehicle Before January 1, 2020

Who does this tax affect?
It affects everyone trading in a vehicle towards the purchase of a new or pre-owned vehicle.

What is changing?
Under current law, your trade allowance (vehicle value) reduces the overall amount of sales tax you pay on the vehicle purchase. However, under new law your trade allowance is capped at $10,000.

How much will this new law cost me?
Currently there is no sales tax on your car's trade value since the allowance reduces your overall taxable amount. Starting January 1, 2020, your vehicle trade allowance over $10,000 will not count as a credit and you will be taxed on the purchase price minus $10,000. Examples are below.

Current Tax Credit		New Tax Credit
Vehicle Sale Price	$60,000	Vehicle Sale Price	$60,000
Trade-In Allowance	$35,000	Trade-In Allowance	$35,000
Trade-In Tax Credit	$35,000	Trade-In Tax Credit	$10,000
Taxable Amount	$25,000	Taxable Amount	$50,000
Tax Paid	$1,812	Tax Paid	$3,625

What can you do?
If you intend to upgrade your current vehicle we recommend you do so before January 1, 2020. Taking advantage of the current tax law can save you thousands on your purchase.

We have several programs available to not only get you a great deal on a new vehicle, but also to get you the maximum amount on your current vehicle. You can use the link below to get started.