Can You Get a Tax Credit for Trading Your Car in East Stroudsburg?


Trading in your car can be a great way to help pay for a new vehicle. However, sometimes the process can be confusing to navigate, leaving you with a lot of questions. At Halterman’s Toyota, we know that clarity is of the utmost importance when making such a big purchase, so we did the research for you to ensure that you feel confident in whatever decision you make.

The best year for you to trade in your vehicle might be different from your neighbor or even your spouse. There are a lot of factors that play into making it a good year for you to trade in your vehicle. We’ll cover some of those factors and hopefully help you decide if 2021 is the best year for you.

 

Car trade in tax credit at Halterman's Toyota in East Stroudsburg | Blurry Dealership Lot

What are Tax Incentives?

Tax incentives are a way for businesses to attract buyers with the offer of paying fewer taxes. It’s like a special discount that could ultimately lead you to get a great deal on your new purchase. For instance, say you can’t stop thinking about that new 2021 Toyota Tundra, but it’s priced at $52,000 and you have no idea how you’ll afford it. Thankfully, Halterman’s Toyota is having a trade tax incentive going on that will make your dreams come true.

This means that we buy your old vehicle (or trade-in), take the amount we bought it for and subtract it from the total price of your new 2021 Toyota Tundra. So if your trade-in was worth $10,000, we would subtract $10,000 from the $52,000, bringing your total price down to $42,000.

That way, instead of paying taxes on the whole $52,000, you will only be paying them on the $42,000 after trade-in.

Who Benefits from Trade Tax Incentives?

Pretty much anyone with a car to trade in can benefit from these types of incentives. The degree of benefit will vary depending on the actual market value of your vehicle, how well maintained it is, and a few other factors. The best thing to do is to come in and let us look over your vehicle and service records so we can give you a fair price.

How Do You Trade in Your Car for the Tax Incentive?

To keep it as simple as possible, we broke it down into three simple steps:

  1. You decide on what car you want
  2. We evaluate your car based on service records and market value
  3. Together, we fill out all the paperwork and you drive off in your new car – simple as that!

How does it work, you ask?

(State tax rate) x (Total car price – Trade in value) = Tax credit

Car trade in tax credit at Halterman's Toyota in East Stroudsburg | Wallet and Key Fob

6% x (Total car price – Trade in value) = Tax credit

[dealer state] tax rate (6%) Total car price (TP) Trade in value (TV) TP – TV = Final Price (FP) Tax without trade (.06*TP) Tax with trade (.06*FP) w/o trade – w/trade = Savings
.06
$20,000
$4,000
$16,000
$1200
$960
$240
.06
$10,000
$1,200
$8,800
$600
$528
$72
.06
$32,540
$6,500
$26,040
$1,952.40
$1,562.40
$390


Want to learn more about the trade tax incentives? Ready to get that new Toyota? Contact our staff at Halterman’s Toyota for more information or come in to see our wide variety of vehicles!