Trade in car tax credit question

Jsolo

I don't see how the amount owed can be taxed?? Yes it gets rolled into the new loan, but as a separate entity. Essentially a loan is being taken out for a loan. That's my understanding here in IL.

In other words, you'll pay tax on $15K, but your loan will be for the $35K (+ whatever the tax on the $15K is).

If the remaining loan does get taxed in your state, perhaps it makes sense to pay off the loan first then trade the car in.

__________________
G37S Sedan 6MT, Eibach swaybars, Invidia Exhaust, Weaker Clutch Pedal Spring

For sale links