Submitted by KJAE85 on Mon, 2019-03-04 06:48
Hi. I apologize if this has been answered previously but I could not find my answer through google.
Scenario: i have a car trade-in value $10k, but i still owe $5,000. I want to buy the M3 at $35k. Does tesla apply $10k towards my purchase and I effectively pay the taxes for $25k (and i pay the $5k loan balance) or does Tesla consider only the positive balance and i would have to pay the taxes for $30k?
To be concise, should i pay off my car before trade in to take advantage of the tax benefits or is it not necessary?