Tax Advantages of Trading in Your Vehicle

Struggling to sell your vehicle? There’s no need for all that hassle. Trading in your vehicle is just part of the convenient Chevy financing process at Carlen Chevrolet—plus, it has tax benefits.

Reduced Sales Tax

When you buy a new vehicle, you have to pay sales tax on the total purchase price. However, when you use your trade-in towards your new purchase, the total cost is reduced. In the state of Tennessee, the value of your trade-in isn’t subject to sales tax, so your sales taxes will be lower.

Tennessee state sales tax is seven percent, so if you are looking to buy a $20,000 vehicle, you’d have to pay $1,400 in sales tax. However, if you trade in your current vehicle for a value of $11,000, you’d only pay sales tax on the remaining $9,000, reducing your sales tax cost to $630.

Trading In vs. Selling on Your Own

We know many car owners are tempted to sell their vehicle on their own. They believe they can get more money this way. However, that isn’t always a guarantee and selling can be a difficult process.

Our dealership is happy to offer you top dollar for your trade-in any time. It’s quick and convenient, and you don’t have to wonder when (or if) your vehicle will sell. And, you certainly don’t have to worry about suspicious buyers or fraudulent payments. You’re invited to visit our dealership anytime to get a free estimate on your trade-in value.

Buying and Selling at Our Chevy Dealership

If you’re considering buying one of our new Chevy vehicles for sale in Cookeville, TN, we encourage you to consider selling your vehicle to us too. Visit Carlen Chevrolet to get started today!