GRAND RAPIDS (WZZM) -- In just a couple of months you'll no longer pay a sales tax for the full value of your new car when you trade in your old vehicle.
Starting December 15, people will no longer pay Michigan's six percent sales tax on up to $2,000 of the value of their trade-in, for a savings of up to $120.
At Van Andel Flikkema Chrysler-Jeep, the sales staff has been waiting.
"The Michigan Auto Dealers Association has been fighting for this for over 30 years," says Chris Brokaw.
Brokaw says the state is offering a tax credit to anyone trading in a used car for a new one.
"It's basically getting credit for a car you trade in and getting a tax credit for a car you're buying," he says.
Like many dealers they hope it will bring more people in to buy cars.
"They want to do it for the consumer," says Brokaw. "If it's less expensive for the consumer to buy a car then they'll buy more cars."
Brokaw believes it will result in sales, so much so, they're starting, now.
"If it's good for the consumer it's good for us, we're so excited about it," he says. "We're going to start it a month early."
The credit isn't huge, but every year the state will be increasing the cap. The trade-in value subtracted from the sales price will rise $500 a year, which equals an extra $30 tax break per year until it is fully phased in 25 years from now.