I'm looking at a bass boat right now... But I am waiting for mine to sell... I really don't want to wait so I'm thinking of the trade in method but want some clarification first...
If I trade in, the boat dealer will pay my other boat off and I will have the leftover balance to pay off correct?? Say I trade in 13,000 towards a 20k boat. I have 7,000 left to pay on the new boat?

Ya, it�s really that simple....assuming they are actually giving you your anticipated trade in of $13,000 PLUS your payoff on your used trade in boat. You will still owe taxes on the balance of the $7000 and the title and licensing fees.

Okay lol I thought so just seemed to simple. I appreciate it!!!

You will own sales tax on $20,000 not on $7,000.

If your boat was paid off, it would be as simple as them subtracting the trade price from the selling price of the new boat. Example:

$20,000-sale price
-$13,000-trade
--------------
$7,000 difference
+ TTL....
--------------
$7,500 total drive out

But if you have a lien on your current boat it is not that simple....

If they give you $13,000 trade but you owe $10,000 for example, that is a $3000 down payment off the $20,000...

$20,000 price
-$13,000 trade
---------
$7,000 difference
+$500 ttl
---------
$7,500 total difference
+$10,000 payoff balance (what ever your pay off is)
---------
$17,500 total due (will vary depending on your po)

You only pay taxes on the trade "difference"

Not true. You only pay races on the difference in trade in and new boat price. One of the advantages to trade in versus selling outright