Trading your vehicle in at a dealership is a convenient and hassle-free process. You may be pleased to hear that it has tax advantages too. Our Mercedes-Benz financing team is outlining all the perks of trading in your vehicle at Mercedes-Benz of Owings Mills.
What’s a Trade-in?
When you sell your vehicle to our dealership and apply the positive equity to a new purchase, that is referred to as a trade-in. Keep in mind, you can still trade in your vehicle at our dealership without purchasing a new car, you just wouldn’t see these same tax advantages.
What are the Tax Advantages of a Trade-in?
You owe sales tax on every vehicle purchased in the state of Maryland. When you trade in a vehicle, the sales tax is applied to the total purchase price of your vehicle, minus the cost of your trade-in. This can lower the amount you pay in sales tax by a significant amount.
This lowered sales tax does not apply when you make a cash down payment. Even if your purchase price is reduced from a cash payment or incentive, you’ll still owe sales tax on the original cost of the vehicle.
What’s My Trade-in Worth?
In order to benefit from these tax advantages, you have to have positive equity in your vehicle to apply toward your purchase. We encourage you to bring your vehicle by our dealership anytime to get a quick estimate of your Mercedes-Benz trade-in value.
Trade-In Your Vehicle Today
To start the trade-in process, visit Mercedes-Benz of Owings Mills. Once you’ve traded in your current model, our team will be happy to match you up to your dream car!
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