I live in ct and I'm wondering exactly what is trade-in tax credit? Is it simply the trade-in value of your old car subtracted from the amount of the new car they will tax?
This is from my state's dmv website but they don't elaborate:

"Full trade-in credit is allowed when computing the Connecticut sales tax, if the vehicle is purchased from a licensed dealer."

 

Not from Connecticut but I assume it means there is no sales tax due on the trade-in as compared to if you sold it outright to a third party. That's how it works here in KY.

04 5AT Coupe, DG/G, premium
If we weren't all crazy, we'd all go insane!

 

Justme,
You're right. It means that a trade-in value is subtracted from the final sale price of the new vehicle. The balance is then subject to Connecticut sales tax. It behoves you to negotiate the maximum trade-in (use Edmunds as a guide and stick to your guns) because the dealers will do everything in their power to low-ball you.
Keith

 

Thanks...that's what I hoped. I was gonna just sell my car while I waited for the g (it'll be here in a few weeks) but that didn't quite work out like I wanted. I would love to get edmund's trade-in but hopefully I can at least get kbb trade-in which is much lower.
I'm SO scared this is gonna throw I wrench in the deal...I want my g!!