If Carvana is willing to give you $25k, what's the problem? Take the money and run
I live in FL where the trade in amount reduces your overall tax.
In my case, not trading in would result in tax of about ~$3400.
- Trading in at their $18k offer is $2400 in taxes
- Trading in at $24k would be $1900 in taxes
I would be willing to trade in with Tesla with a lower offer where the offset of tax and equity is just a little less to save the hassle, but not when it's $5k+ less in equity and the difference of not trading in and trading in at $18k is $1k in taxes.