Proper way to calculate loan amount with trade - Jeep Wrangler Forum

Go Back   Jeep Wrangler Forum > JK Jeep Wrangler Forum > JK General Discussion Forum

Join Wrangler Forum Today

Thread Tools

Please support our sponsors and let them know you heard about them on
Old 11-08-2011, 01:49 PM   #1
Join Date: Oct 2011
Location: MA
Posts: 880
Proper way to calculate loan amount with trade

I couldve sworn Im doing this right, but after doing my math and double checking it with a few online calculators, my numbers are off.
Its been a while since Ive traded anything in on a new car purchase, but I *thought* it went like this

(New car - trade value) * sales tax (+ title and reg) = out the door price

basically when trading in, you only are taxed on the new car MINUS the trade in. So on a $30k car, with a $15k trade, you are only taxed on the $15k difference.

This is different than having no trade and paying cash down. That being

(New car * sales tax) - DP = out the door

Those two equations differ about ~$700 in my case.
After plugging in these numbers onto a few online calcs, that doesnt seem to be. Is this a state by state thing?
Where am I buggering my numbers up? Its been a good 10 years since Ive traded anything in, so its a bit fuzzy to me....

R4D4R is offline   Quote
Old 11-08-2011, 02:34 PM   #2
Retired Mod

5-Year WF Supporting Member
panthermark's Avatar
Join Date: Aug 2011
Location: Chicago-land
Posts: 11,112
Correct, not every state allows you to tax the new car amount minus the trade in amount.

We can do it in Illinois...but I'm not sure about MA. I think Edmunds has a list of what states can do what.

panthermark is offline   Quote
Old 11-08-2011, 02:49 PM   #3
Join Date: Oct 2011
Location: MA
Posts: 880
Ok, good. I thought I remembered thats how it went. Guess these online calculators should give this as an option. I was trying to use Edmunds and Bankrate's calculators. I was not aware this was a state by state thing. I just did a quick dig on Edmunds and found this

What Fees Should You Pay? -

This chart was updated this past January so hope its current enough

R4D4R is offline   Quote
Old 11-08-2011, 03:03 PM   #4
vgerardi's Avatar
Join Date: Oct 2011
Location: Alexandria, OH
Posts: 284
Thanks for the link! Good info guys!
vgerardi is offline   Quote
Old 11-08-2011, 07:42 PM   #5

WF Supporting Member
ShaneDiddy's Avatar
Join Date: Feb 2010
Location: Alamogordo
Posts: 222
I use edmunds only thing is that every dealer ive been to the fees are calculated in to the sales price tax..the online calc doesnt account for that.
The tax incentive as well as your trade ammount are added like cash down. And not all states do the trade tax incentive.
(Sale price+title and fees)+ tax - rebates - cash down - trade annount - tax of trade ammount.
2012 Deep Cherry Red Sport 2Dr 6-speed 3.73, Tow Pkg, Power Grp, Connectivity Grp, Hard Top, Deep Tint - (reordered 9/20 for Gears)
D1 Status 9/23
Built Pending Inspection 10/5
Delivered 10/24

2010 Bright Silver JKU - Sold
ShaneDiddy is offline   Quote
Old 11-08-2011, 09:17 PM   #6
Join Date: Jan 2011
Location: Eastern Iowa
Posts: 994
Watch for the "doc" fee, most dealers charge $30 but some crooks,,, I mean dealers charge as much as $800. Don't get taken by it. Also add in to the amount financed any balance owed on the trade.
Silverton34 is offline   Quote
Old 11-08-2011, 10:27 PM   #7
ladyjane's Avatar
Join Date: Jul 2011
Posts: 3,221
If you are placing an order and put down a deposit, don't forget to take that deposit amount out of the price when you go in to pay. I had to tell the finance guy that I had paid a $500 deposit and that he needed to remove that $500 from what he said I needed to pay.

ladyjane is offline   Quote

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
MI: Trade my 03 chevy zr2 EXT cab for a wrangler tj Dirtbikedrew Classifieds Archive 1 07-27-2011 07:25 PM

Download our Mobile App

» Featured Product

All times are GMT -5. The time now is 01:44 AM.

User Alert System provided by Advanced User Tagging v3.1.0 (Pro) - vBulletin Mods & Addons Copyright © 2016 DragonByte Technologies Ltd.

Jeep®, Wrangler, Liberty, Wagoneer, Cherokee, and Grand Cherokee are copyrighted and trademarked to Chrysler Motors LLC. is not in any way associated with the Chrysler Motors LLC