Exactly Commandoe! I have a vehicle that they are giving me $18,000 for trade-in value. I owe on it, but that's irrelevant. They subtract what they're showing me on trade from what they're asking for theirs and I pay the tax on the difference. So if our tax rate is 8.7% and I'm buying a VT for $26,600 and getting $18,000 trade, then I will have to pay tax on the difference, or $8600 and that total tax would = $748 (rounding). Without the trade I would have to pay $2314 in taxes. Therefore, if I were to sell my trade-in privately, I would have to sell it for $18,000 + the tax savings I would have gotten had I traded it in $1,566 = $19,566. Sometimes it's best to not hassle with private sells unless you have customized and need to get your worth out of it cuz the dealer only books it out with factory installed options.