Taking a bath on a dealer trade in.

[Serpent]

This isn't me, but besides getting a deal on the next purchase from dealership, why would anyone decide to lose out on over $10k and trade in a vehicle? Compared to selling to an interested buyer?

Example: someone trades in a '16 C7Z for $50k. Car had 10k miles, nothing wrong with car. Car is barely put up for sale, maybe a little over 7 days. Buyer didnt get a purchase either.

I'm just wondering why anyone would go that route, are they too proud to sell to another person for a decent price and would rather take a bath?

Its like me getting offered 14k for my '13 mustang GT (25k miles) and continuing with that deal, vs selling it on my own for mid 20s (i sold it for 24k, it was for sale for about 2 weeks).

 

[DHG1078]

Some states give you a tax savings when you trade in a car. Sometimes its just "easier" and you don't have to deal with shady craigslist individuals coming after you in 6 months because they wrecked the car and want their money back.

 

[Serpent]

Some states give you a tax savings when you trade in a car. Sometimes its just "easier" and you don't have to deal with shady craigslist individuals coming after you in 6 months because they wrecked the car and want their money back.

Whew, good thing im passed that 6 months mark! lol just need to pass that year mark!

 

[CV355]

Time, stress, aggravation.

I took a bath last year trading a motorcycle in towards a Jeep. Probably could have got an extra $7k by selling it myself, but I didn't have the time and didn't want to deal with the aggravation of tire kickers

 

[Sonic605hp]

In NY the trade value is deducted from the purchase price of the vehicle you're purchasing. So if I got $35k for my truck and bought a vehicle for $40k I'd only pay tax on $5k...I thought it was like this everywhere. Even if you take a hit on the trade price you can make a good bit of that up on the taxes....if you had to pay the full tax on that $40k in NY it's $3,200 so if you take $2400 less as a trade than you would have sold it outright for it's a wash, that's why people do that instead of dealing with tire kickers and retards trying to sell personally.

 

[DHG1078]

In NY the trade value is deducted from the purchase price of the vehicle you're purchasing. So if I got $35k for my truck and bought a vehicle for $40k I'd only pay tax on $5k...I thought it was like this everywhere. Even if you take a hit on the trade price you can make a good bit of that up on the taxes....if you had to pay the full tax on that $40k in NY it's $3,200 so if you take $2400 less as a trade than you would have sold it outright for it's a wash, that's why people do that instead of dealing with tire kickers and retards trying to sell personally.

Not all states do that. Some, like CA, tax you on the full amount regardless of the value of the trade in. In CA you trade in a car out of convenience rather than tax savings.

 

[03cobra#694]

I'll trade my wife's 04 escape for a new one. I don't want to deal with the idiots.

 

[dooberGN]

My brothers mother in law trades in her Volvo (not sure of the model) SUV, gets 10k for it and puts 7k down on a lease for a Ford Edge.

Of course she went by herself.

 

[Sonic605hp]

That's crazy to me. If that were the case here I'd always sell outright.

Not all states do that. Some, like CA, tax you on the full amount regardless of the value of the trade in. In CA you trade in a car out of convenience rather than tax savings.

 

[HudsonFalcon]

Time, stress, aggravation.

I took a bath last year trading a motorcycle in towards a Jeep. Probably could have got an extra $7k by selling it myself, but I didn't have the time and didn't want to deal with the aggravation of tire kickers

Think you nailed it for a lot of people. If you've ever sold anything on Craigslist you know how aggravating it can be to deal with scammers, lowballers, etc. etc.

 

[13COBRA]

I'm not sure the convenience factor would be worth $10k...but if the tax benefit was $5k, and the convenience factor $5k...I'd do it.

I hate Craigslist. I get enough of the general public every day trying to think they know how everything works...I don't need someone coming to my house to do the same thing.

 

[Serpent]

Not all states do that. Some, like CA, tax you on the full amount regardless of the value of the trade in. In CA you trade in a car out of convenience rather than tax savings.

Yea, my dumb ass finally realized I cant swing a 90k car just yet when tax is almost $10k.

Basically in Cali, for every $50k its 5k in tax (initial registration). SO a $200k car has $20k tax. Also depends on the year of the car too, but pretty much 50k=5k taxes (again initial registration).

Also, my thread is talking about the deal going down in Cali.

 

[13COBRA]

Yea, my dumb ass finally realized I cant swing a 90k car just yet when tax is almost $10k.

Basically in Cali, for every $50k its 5k in tax (initial registration). SO a $200k car has $20k tax. Also depends on the year of the car too, but pretty much 50k=5k taxes (again initial registration).

Also, my thread is talking about the deal going down in Cali.

Shit, my tax rate here is 8.725%. 10% in Cali isn't sounding so bad.

 

[tones_RS3]

Time, stress, aggravation.

^^This.
Especially if you find a car that fits your exact wants/needs.

I hate Craigslist. I get enough of the general public every day trying to think they know how everything works...I don't need someone coming to my house to do the same thing.

Same here. I'll pass on that.

 

[Never_Enough]

$10k? I'll deal with a couple idiots. To save myself troubles, I always tell people no test drives unless you have the cash to buy the car on you.

 

[PaxtonShelby]

I will never trade a car at a dealer.

Dealer offered me $1k for my 80k '94 F150 4x4. I sold it on CL in a week for $4k.

Dealer offered me $1k for my 130k 2001 Eddie Bauer Explorer. I sold it on CL in a week for $4k.

To me a little aggravation is worth $3k cash. That money comes in handy for mods.

It helps that everything I own is kept really clean - and a little older - as it can be a lot easier to sell a car in the $4k-$10k range. Even CL buyers can scrape up smaller piles of cash. Not a knock on CL buyers - I've been there many times. Just the way it is.

 

[03cobra#694]

Ballers

 

[Blk04L]

For the most part I've gotten good trade in values.
To the point where factoring in the car I wanted to switch to may be sold when I finally private sell my car, and that the price difference between private sale vs trade in+ tax savings is close enough.

While I may of gotten an extra k or two via private sale, the time + tire kickers and low ballers just isn't worth it to me.

 

[RustyRodder]

Sonic got it for NY. Also, it depends on the cash- cars under 10k seem to sell on craigslist. Once you get up to 10+ range, it gets more difficult. If it isnt a specialty car (toyotas, Hondas) most buyers are looking at dealers since they can walk in, sign a paper, and drive out without any DMV hassles and whatnot.

 

[nxhappy]

depends on the value. on CL, I can sell shit fast if the price is under $15k. Once you crack a certain point, people don't have money. Then you are dealing with banks and all the other bull shit.