https://www.motorenn.com/vehicle-trade-in-tax-benefits-by-state (not the biggest fan of this but can’t find one I like better)

The same thing applies to houses and many other large purchases. Also most states that offer a trade in discount also let you sell the car private party (or to another dealer) and claim it on your taxes. You just have to file more paperwork vs the dealer figuring that out for you.