Automotive

Tax savings trade in vs down payment

  • Last Updated:
  • Jun 8th, 2016 1:16 pm
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[OP]
Sr. Member
Dec 24, 2009
817 posts
459 upvotes

Tax savings trade in vs down payment

Do you not save on the tax when putting a large down payment vs trading in your old car? This is such a scam
2 replies
Deal Addict
Dec 30, 2007
1005 posts
190 upvotes
Ottawa, ON
No. Your deposit it made after tax, your trade-in is deducted from the value before tax.
Banned
Nov 16, 2012
1837 posts
386 upvotes
EAST YORK
It's not a scam. And NEVER trade in a car. Spend a day thoroughly cleaning it inside and out, take good pictures and videos and post a good classified ad and you make much more than trading it in.

My mother was just offered $4500 on a trade for her civic(so $5085 equivalent once tax savings factored in). I did the above and within a few days I sold it for $7000. I could have gotten even more but she was happy enough with that and took the money on the spot. A day spent cleaning and posting an ad earned her $2000 more, simple as that.

Did the same with my gf's car a few months back. She was offered $1500 for her car on a trade and we sold it privately for $3500.

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