Observation on sales tax -- the trade does not reduce it. Look carefully at the pricing and you'll see the price of the Caddy, less discount, plus delivery,etc and taxes on the net amount. Then they subtract the $15k trade-in. It sucks, but the tax collector always gets his pound.

 

I haven't traded in any car (so I don't know first-hand), but when I was at the dealership a little while ago the sales guy was telling a story about someone who bought a car, and mentioned that you do save on the taxes with a trade-in.

 

It depends upon the state.

It is true in Connecticut, buy your mileage may vary.

 

First ask what your sales tax is on auto's? Most average 8.75% here in AZ, but in rural areas there is no city sales tax. So traveling a bit may save you sales tax. Another issue is whether your state allows you to carry your vehicle registration over to your new vehicle.