Bmr4life

Sorry, I'm not sure what you mean by that. Good thing or a bad thing?

ShaneM

my cousin is a finance manager at a local dealer, he explained it to me but i stopped listening to him. boils down to if you want 10k for a car private sale or 10k at trade, the 10k at trade saves you sales tax so you actually would need to sell the car privately for more than 10k to have the same value at trade. someone that knows more will have to explain it better. i do remember him saying if i traded a car for 10k it was like bringing 12k as a down payment thanks to the tax break.

Bmr4life

I understand what you're saying, but I'm not sure it would work that way. Would be nice if someone that knows for you would chime in.

I see it either working or not working.

If I get $10k for trade, it potentially turns a $33k new car into a $23k new car. Question is do they put tax on the $33k or the $23k.

Update. I looked it up.

For Georgia (my state)
Q. Is sales tax calculated before or after the amount allowed for a trade-in?
A. After. The tax is calculated after deducting the trade-in amount that the dealer is allowing as credit on a purchase

You're example is close to being 100% right.


You do only pay tax on the difference, so $23k for my example. It doesn't make $10k = $12k, but it does make it = $10.7k since the taxes are 7%.

vbstang13

Ok someone explain this to me....I sold one of my cars a few years ago for 19k and I had 19k to put towards a new car. I did not have to pay sales tax for selling my own car the buyer paid the tax. Maybe I misunderstood something.

Anyway, according to Kelly Blue Book your car would be worth aprox 12.3 k as a trade and 14.1 k if you sold it yourself. Sell it yourself and make the extra it's not difficult. Just don't have strangers come to your house to see it arrange to meet at a mall parking lot or something like that

Lethaldosage423

my 05 has 94k on her and people are selling them on autotrader for over 12k. im putting her up for 11,500 but ill more than likely take 10,500.

i spoke to the dealer today and im going on on saturday to get pre approved for a loan so i dont sell my car and get stuck with nothing. the dealer said they may be able to give me more than book value so ill see...

Bmr4life

You're talking about the V6 right. Those numbers aren't bad. Maybe my car is worth more than I've been thinking.

Lethaldosage423

yupp my sixxer in my sig.

look on auto trader just do a 200 mile search for a 2005 v6 with the same transmission as yours and select like 65 000 miles or more for the mileage and see what comes up, theres some crazy stuff

but i do know prices vary from state to state, im in California and everything seems to be more expensive than when i lived in NJ

FloRida Livin

[QUOTE=Lethaldosage423;7591319]my 05 has 94k on her and people are selling them on autotrader for over 12k. im putting her up for 11,500 but ill more than likely take 10,500.

i spoke to the dealer today and im going on on saturday to get pre approved I

I was a Sales Manager for several new car dealerships over a 14 year span- know the industry and the inside scoop well. I can help make sure you are getting a fair deal across the board.
Sorry it took me a while to catch this thread- I could have clarified a lot of stuff that you all finaly found out-
PM me your VIN # and miles - i can do a real time appraisal based on real trade value as well as find out what the incentives are for the new car if you tell me what you are looking at.
Happy to help if you still need it.

FloRida Livin

In a situation like that- you are right on. A buyer has to pay the taxes on a car he buys- private or otherwise. If its from a private seller like yours was, they pay taxes (and plate fees, registration) when they go to the DMV.
As for getting a tax break when you trade a car in- not all states do that. Some (like MI) make you pay taxes on the full selling price- NOT the price of the car AFTER your trade value is taken into consideration.
Also- if you have a lien on your trade- that eats up the trade value and therefore the tax break.
I was a Sales Manager for many years... Kinda know this stuff in and out. If ever I can help, I'm willing. The dealership world can be a little challenging for sure.

ym42

Just read that used cars are to get more expensive very soon, it has something to do with people leasing less cars and no more off-lease cars to sell... You can tell them that :-)