Cash for Cars NYC would love to buy your car for cash however we’d be deceiving our customers if we didnt give good information on how to utilize your vehicle for it’s maximum value when trading it in for a new car.
For starters, when trading your older vehicle for a new one you need to understand what the sales tax break is.
The sales tax break is simple. When you purchased your current vehicle a few years ago, you may have purchase it for $40K and paid sales take on that amount. Now your car is only worth around $25K on trade but you are buying a new $40K vehicle. If you are a NYC resident and the dealer is willing to give you $25K on trade, that $25K is actually worth the same as if you sold it privately as $27,218.75. How, well when you used your vehicle as a trade in you subtract the trade in value and only pay sales tax on the balance owed. In the case shown above, you would only pay sales tax on $15K rather than $40K. Wich equates to the same if you sold your car privately for $27,218.75 or traded it for $25K.
Now, how do you know if you are getting played by the new car dealer? The first questions they will ask is if you have a trade. Even if you do say no. In most cased, you will pay more for the new car and they will give you an illusion of giving a higher trade value. It’s a smoking mirror. Negotiate the best possible deal first and then introduce the trade. When doing this, you force the dealer to give you a realistic price on trade so you know your options.
This is where we come in. Now that the dealer is giving you a bottom line trade, call us and we might be able to offer a better price which is giving you more money in your pocket than the sales tax break. Another advantage is if you are shopping for a used car, you might fair better by taking the cash first so you have flexibility when shopping by having the physical cash in pocket.
Any way you look at it, it’s definitely worth contacting us for a cash quote for your car. Appraisals are always free and in may instances we might be able to come to you. Feel free to call us toll free at (888)743-7620 or visit us online at www.cashforcars.nyc.