When you purchase or lease a new or used vehicle and you already own another vehicle, you have a few options available to you: You can choose to keep that vehicle, you can sell it privately, or you can trade it in at a dealership, potentially the dealership from which you are buying the vehicle for the ultimate convenience.
Some people choose to sell privately because they believe they can sell it for more than the dealership will pay, but they often don’t realize the hassle and money that goes into advertising the car for sale and paying for a second registration until it sells. It’s also a considerable time commitment (with some significant risks) to meet strangers on their schedules to test drive a car.
But trading in your car at a Kentucky dealership like Chip Wynn Motors may actually make you more money than a private sale. That’s because of a 2014 Kentucky sales tax law on automobile trade-ins. When you pay the 6% sales tax on the purchase of a new vehicle, the value of your trade-in will be deducted from the vehicle sale total, meaning you will pay less in taxes. Kentucky estimates that customers will save an average of $600.
For more details on the trade-in tax credit in Kentucky, contact us at Chip Wynn Motors.