Question about trade-in

[LIPony]

Today I went and ordered a Gt with 5oth AP in DIB with X-plan. They appraised my car and offered me more than I expected. They asked if they could take my car now or it would be 600 less by the time the new car arrives,
Has anyone ever done this?
I don't need the car since I also have an suv. It will be written in the contract that if they cannot get the 2015 with 50th AP, then they will cut me a check for the trade.

Sponsored

 

[GT Pony]

I'd say if you don't need the car then let the dealer take it and you save $600 plus you don't have to worry about anything happening to the car while you wait for the new GT to come in. Just make sure everything is covered and written down to protect yourself in the deal.

 

[Furilic]

I'm trading in my 14 Camaro, and my dealer is going to appraise my car once the GT arrives but assured me it would be similar to KBB trade in value which I am perfectly fine with. However, if I was offered a good price before hand I would have definitely traded in early. Just figure that its going to take roughly 2 months for your new Stang to arrive.

 

[Scorpion]

Today I went and ordered a Gt with 5oth AP in DIB with X-plan. They appraised my car and offered me more than I expected. They asked if they could take my car now or it would be 600 less by the time the new car arrives,
Has anyone ever done this?
I don't need the car since I also have an suv. It will be written in the contract that if they cannot get the 2015 with 50th AP, then they will cut me a check for the trade.

If you trade your car to them now, they will have to actually buy it from you. You will not save money trading if you use the cash to buy the car since you will have to pay full tax on the new car. I was in the same situation. I have not driven my car since we talked and they said we would have to renegotiate at the time my mustang comes in.

Since then I have minimally driven my car, and the trade in value has gone up almost $1,ooo. I was ready to have to take less for my car, but it looks like my gamble is paying off. My car only has 6800 miles. 2013 Challenger with the Black Top package. A fairly rare car.

1 - Rethink how much tax you will save.

2 - If you don't drive your car, it might increase in value. Use a couple of sites to check the value of your trade in.

 

[Furilic]

If you trade your car to them now, they will have to actually buy it from you. You will not save money trading if you use the cash to buy the car since you will have to pay full tax on the new car. I was in the same situation. I have not driven my car since we talked and they said we would have to renegotiate at the time my mustang comes in.

Since then I have minimally driven my car, and the trade in value has gone up almost $1,ooo. I was ready to have to take less for my car, but it looks like my gamble is paying off. My car only has 6800 miles. 2013 Challenger with the Black Top package. A fairly rare car.

1 - Rethink how much tax you will save.

2 - If you don't drive your car, it might increase in value. Use a couple of sites to check the value of your trade in.

Good point, I completely forgot about the difference in tax. You'll most likely save more than $600 in tax if you keep your car, also depends on the amount your getting for the car.

 

[GT Pony]

Good point, I completely forgot about the difference in tax. You'll most likely save more than $600 in tax if you keep your car, also depends on the amount your getting for the car.

I think it depends on what state you are in. Some states don't give you much of a tax break on a new car purchase with a trade-in.

 

[Scorpion]

I think it depends on what state you are in. Some states don't give you much of a tax break on a new car purchase with a trade-in.

It's not a tax break. It's the fact of double taxation.

 

[GT Pony]

It's not a tax break. It's the fact of double taxation.

Not following you. In some states you only pay the difference between the new car price and the trade-in value, but in some states it doesn't quite work that way. It varies from state-to-state.

So for instance, in some states, if a car was 40,000 and your trade-in was 30,000, then you only pay sales tax on the 10,000 difference. But if you bought the car with no trade-in you'd pay sales tax on the whole 40,000.

 

[Mr Monte]

I've bought 8 new cars in the last 10 years and all my trades have been KBB trade in value or higher plus I've got 4-10K off MSRP on the new purchase. Not having a sales tax in Oregon really helps too.

 

[LIPony]

Thanks everyone,
I have to go back today to finalize everything, but on the paperwork i have, it has the price of the car, the trade in price and the the sales tax. I checked carmax's online tax calculator and the sales tax looks to be equal to the difference between the trade in and the price of the new car.
So I'm going to triple check with them, that I will still be only paying tax on the difference and not the full price of the car. If i'm not going to save on the tax with the trade in, I will just keep the car until the new one comes in and take the 600 dollar loss which is less than the paying full tax price. Oh and this is in NY by the way.

I also checked with my insurance agent (state Farm), as soon as i surrender my plates to motor vehicles, i just get the receipt, fax it to the insurance company and they will put my policy account on hold for up to 6 months. So as soon as I get the new car, it just gets reactivated.

 

[LIPony]

Not following you. In some states you only pay the difference between the new car price and the trade-in value, but in some states it doesn't quite work that way. It varies from state-to-state.

So for instance, in some states, if a car was 40,000 and your trade-in was 30,000, then you only pay sales tax on the 10,000 difference. But if you bought the car with no trade-in you'd pay sales tax on the whole 40,000.

Thats what I thought too and according to my paperwork, it looks like I am only paying tax on the difference.
Just going to double check with them before I sign over my car. and it is written on the contract.

 

[LIPony]

I've bought 8 new cars in the last 10 years and all my trades have been KBB trade in value or higher plus I've got 4-10K off MSRP on the new purchase. Not having a sales tax in Oregon really helps too.

Must be different in Oregon, but in New York, You would be lucky to get KBB full price, let alone a higher value.

 

[LIPony]

If you trade your car to them now, they will have to actually buy it from you. You will not save money trading if you use the cash to buy the car since you will have to pay full tax on the new car. I was in the same situation. I have not driven my car since we talked and they said we would have to renegotiate at the time my mustang comes in.

Since then I have minimally driven my car, and the trade in value has gone up almost $1,ooo. I was ready to have to take less for my car, but it looks like my gamble is paying off. My car only has 6800 miles. 2013 Challenger with the Black Top package. A fairly rare car.

1 - Rethink how much tax you will save.

2 - If you don't drive your car, it might increase in value. Use a couple of sites to check the value of your trade in.

According to the paperwork/contract, I am only paying tax on the difference.
My car will not increase in value, Its only a 2013 2LT RS Camaro, they are a dime a dozen. I checked KBB, Edmunds and black book(customer one) not the one the dealers use and KBB was the highest.

 

[Mr Monte]

Must be different in Oregon, but in New York, You would be lucky to get KBB full price, let alone a higher value.

My last purchase was a 2014 SS Sedan (LS3 V8 Powered) which I got $4,500 of MSRP and I got $30,000 trade in on my 2012 Camaro SS/RS when KBB trade in was only $29,000. Note that the SS Sedan had been on their lot for a few months which could explain the above KBB trade in.

The dealer listed my used Camaro for $29,500 but I don't know what they sold it for. All the other Chevy dealers in my area would not come off MSRP on their 2014 SS Sedans which are pretty hard to find. 3 months later the KBB trade in on my Camaro dropped by $6,000 so I really dodged a bullet with that one.

 

[LIPony]

Well it's official, the camaro is gone, and wait begins.

Sponsored