Tax Benefits of Trading in Your Vehicle

Dodge financing is more affordable than you think, especially if you’ve considered trading in your vehicle. Not only does trading in simplify the process of buying a new car, it can also offer some helpful tax benefits. Read on to find out how trades-in and tax credits can help you afford a new Dodge vehicle.

How Trade-Ins Work

Trade-ins are a way to make the process of buying a car much more streamlined and affordable. Here’s how they work: ®

Let’s say you’re ready for a new Dodge vehicle. You can bring your old one to our Houston Dodge dealership and we will issue you a credit for it, which you can apply to any new car on our lot. It’s basically like getting a discount for the price of your old car, and it can potentially save you a lot of money on a brand new vehicle.

Tax Credits on Trade-Ins

Any time you purchase a new car, you are required to pay sales tax, a percentage of the total price of the new car. In Texas, the state sales tax on car purchases is 6.25% of the price, which can rack up to a hefty total on some new vehicles.

However, most states, including Texas, offer tax credits on trade-ins as a way to reduce sales tax on new cars. This means that if you choose to trade in your car, the sales tax won’t be calculated until the dealership-issues credit has been deducted. So both the price of the new car and the sales tax will be significantly reduced!

Dodge Financing at Helfman Dodge Chrysler Jeep® RAM FIAT

If you have any questions about financing your new Dodge vehicle, you’re always welcome to visit Helfman Dodge Chrysler Jeep RAM FIAT to discuss what works for you. We understand that affordability is important to you, and we want to help you find the perfect vehicle no matter what your budget is!