What entry should be made when a vehicle is purchased with a trade in.?

Question

I think the new vehicle should be listed at its sale price not the loan price. So I would write off the old vehicle at its original price and the related accumulated depreciation and record a gain on the trade in. Thanks

Answer 1

You need be cautious when going to trade your vehicle to a dealer.  If you are not sure of what your car is worth then you can get really ripped off.



Dont be suprised if a dealer makes a terrible offer. It's simple to get a quote online to see how much your car is going to fetch.  I have recommended http://tradein.123thebest.info - Good luck.

Answer 2

These are two seperate entries.

The trade is already on your books and has been depreciating.Cost less dep is your value. Trade in value is your profit or loss.

Sale price on new truck entered as an asset and set up for dep.

Is this what you want?