Quote:
Originally Posted by Hal88
Yea, I never heard of tax savings when trading in a car.....if it is true then I will lean more towards trading it.
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Here in Colorado the trade in value is deducted from the selling price of the new vehicle when it comes to calculating taxes. In my tax area I save an additional 8% based on the trade in amount. If the difference between private party sale is less than 8% then it makes more sense to trade.
With that said it might be better to trade it in given the price of gas. Private party market may be limited for a low MPG vehicle such as the X5.