Some drivers don't realize that trading in their car can actually help them reduce their tax bill. If you have a trade-in when you shop for a new car here at Hall Honda Elizabeth City, our Honda finance experts can tell you all about how you can lower your sales tax by trading in at our dealership.
Sales Tax
When you trade in your vehicle, the dealership will pay you a certain amount for it. You can take the money and go, or you can do what many other drivers do: put that money towards a new Honda vehicle.
Doing this can actually lower your costs by a significant amount because the sales tax you pay on a new Honda car won’t be based on its original price. Instead, it is calculated based on the original price with the trade-in value deducted.
Calculating Sales Tax
The state of North Carolina charges a three percent Highway Use Tax, which is similar to a typical sales tax. It may not seem like a lot, but it can definitely add up when you're dealing with something expensive like a new car.
Take a car that costs $45,000. If you trade in your vehicle and knock $15,000 off of the asking price, you'll pay $900 in taxes on $30,000 instead of $1,350 on $45,000.
Start the Honda Finance Process Today!
If you're ready to purchase a new vehicle and you have a trade-in, visit Hall Honda Elizabeth City today. We'll help you find the perfect car, truck, or SUV.
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