Calculate the trade's real effect on the next loan
Enter the numbers from the deal sheet. Trade-in sales-tax treatment varies by state, so use the toggle to match the rule that applies to you.
Planning estimate only. Tax treatment, taxable fees, lender rules and dealer paperwork vary. Use the written buyer's order and lender disclosure for final figures.
Trade value and trade equity are not the same thing.
A $14,000 trade with a $9,000 payoff contributes about $5,000 of net equity before other deal details. If the payoff were $17,000 instead, the same vehicle would bring $3,000 of negative equity into the deal.
Tax treatment can make the trade more valuable in some states.
Some jurisdictions reduce the taxable purchase amount by eligible trade-in value while others use different rules. The calculator lets you turn that assumption on or off so the estimate matches your deal more closely.
FAQ
How does a trade-in lower a car payment?
Positive trade equity reduces the amount that needs to be financed. A smaller financed balance generally means a smaller payment when APR and term stay the same.
What if I still owe money on my trade?
Subtract the payoff from the trade value. A positive result is trade equity; a negative result is negative equity that may need to be paid or rolled into the new transaction.
Does trading a car always reduce sales tax?
No. Trade-in tax treatment varies by jurisdiction and transaction. Verify the rule that applies to your purchase.