Can the Trade In Value of the Car be used to Reduce Title Ad Valorem Tax (TAVT) amount in Georgia?

safe_bet · February 2019

Can the Trade In Value of the Car be used to Reduce Title Ad Valorem Tax (TAVT) amount in Georgia? One salesman told me no because the trade in discount applies to purchases not leases. Another dealer said only partially. My trade in would be about 10k (700 credit toward TAVT) which would be a nice compromise vs the money I lose selling it privately. Would be easier if TAVT does not apply and I can separate the 2 transactions but the extra money towards a lease would be a bonus. Text below says purchase.... ?

https://dor.georgia.gov/title-ad-valorem-tax-tavt-faq
How is the trade-in value determined?
As defined in O.C.G.A. § 48-5C-1, the “trade-in value” is the value of the motor vehicle as stated in the bill of sale for a vehicle which has been traded in to the dealer in a transaction involving the purchase of another vehicle from the dealer.

Thank you.

kyfdx · February 2019

I think between the dealer and the DMV, you'll get better answers than we will have here.

In many states, there is no trade-in credit, because the trader (you) and the new car owner (the bank) are not the same person/entity.

Michaell · February 2019

safe_bet said:
Thank you. That makes sense. Good point about the DMV. I was hoping someone might have recent experience since I got 2 different answers from sales people at different dealerships.

Not sure sales people are the right folks to ask --- see if you can talk with a finance manager.

safe_bet · February 2019

Thank you. That makes sense. Good point about the DMV. I was hoping someone might have recent experience since I got 2 different answers from sales people at different dealerships.

safe_bet · February 2019

Wanted to share my findings for others. Thank you.
https://dor.georgia.gov/documents/information-bulletin-tavt-trade-value-leased-vehicles
"...Likewise, a titled owner of a vehicle who trades in their vehicle to a dealer as part of an agreement to lease another vehicle may claim a trade-in reduction on the Fair Market Value for TAVT purposes."

kyfdx · February 2019

safe_bet said:
Wanted to share my findings for others. Thank you.
https://dor.georgia.gov/documents/information-bulletin-tavt-trade-value-leased-vehicles
"...Likewise, a titled owner of a vehicle who trades in their vehicle to a dealer as part of an agreement to lease another vehicle may claim a trade-in reduction on the Fair Market Value for TAVT purposes."

Good info... thanks!

Can the Trade In Value of the Car be used to Reduce Title Ad Valorem Tax (TAVT) amount in Georgia?

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