Do I Have to Trade in a Vehicle to Receive Tax Benefits?

September 25th, 2019 by

A lot of questions can arise when buying or leasing a new Nissan. We understand at Boch Nissan how important it is to have them answered fully so that you feel comfortable with your decision, especially when it comes to finances.

One of the best ways to save money and help pay for your new Nissan is to trade-in your old vehicle. Not only will it reduce the price you pay on your beautiful new car or truck, the state of Massachusetts will only require you to pay tax on the difference after trade-in.

So, for example, say that you want to buy a new Nissan priced at $30,000 to cruise around Norwood or go on trips to Boston. You decide to trade-in your old vehicle worth $10,000, whose value is subtracted from the original price ($30,000 – $10,000). This brings the cost down to $20,000 after trade-in.

You will only pay taxes on the $20,000 difference, instead of on the $30,000 original price. That’s a big difference!

The only way to receive this special tax discount is through a vehicle trade-in because we need the value of that asset to make up for the extra cost.

If you want to learn more about vehicle taxes, check out our other articles that go more in-depth about trade tax incentives in Massachusetts and the tax advantages of leasing versus buying.

Receiving Tax Benefits by Trading-in at Boch Nissan | Woman doing financial calculation

If you have any more questions about buying or leasing a Nissan, don’t hesitate to reach out to us at Boch Nissan! We hope this was helpful!

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