Quote:
Originally Posted by mwaussie
I'm still a little ditzy on the trade-in thing. KBB says my cars value is about 29k. I'm assuming GM will credit that towards the price of the camaro. But I still owe 18k on my infiniti. So how is the financing on my infiniti resolved?
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Assuming that the 29k is trade-in value, then they would pay off your 18k balance on the Infiniti and show 11k towards the Camaro. The sales tax would be based on the Camaro price (approx. 36k) minus 11k = 25k.
36,000 - 11,000 = 25,000 x .0825 = Est. Sales Tax of $2,062.50
Amount to finance: 25,000 + 2,062.50 = $27,062.50 + title & registration fees
I did a few calculations on kbb for you and it looks like you could come out about $1,800 better if you sell it yourself. But you would pay about $900 more in sales tax for a net gain of $900. However, under the economic stimulus bill you would gain some additional value in the deductibility of sales tax on auto purchases. You would have to talk to an accountant to determine exactly how much that would translate into.
Hope this helps!
