Selling my 2017 GT350 - how much should I deduct for my rear-end collision?

[gravedgr]

I was hit from behind last year in a 5-10 mph accident. I have photos, insurance payout and parts replaced, etc. It was essentially the rear bumper cover and diffuser plastic parts.

I need to trade or sell it in preparation for a new car order and I'm wondering how much of a hit I should be expected to take on the trade, or how much I should lower my selling price if I go private party.

If I were the buyer, I wouldn't care about a non-structural accident, especially when parts (particularly plastic ones) are replaced with OEM new vs. pair repair, metal repair, etc. I realize that is not the same for all buyers and so I expect I need to adjust my price.

The dealer for the new car said the market is good for trades right now and I should expect to get near/full KBB estimate, which is around $46k. PP sale estimate is around $49k. Tax savings on a $46k trade is about $3,300 so its wash in net value either way if KBB is remotely accurate, +/- whatever loss I have to take from the accident.

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[ZX3ST]

For a minor incident like that, I wouldn't think it would or should affect resale much, if at all.

If I were the buyer, as long as the repair workmanship was top notch, it wouldn't concern me. Data point of 1 person FWIW.

As for taxes, unless GA is different, you're not required to trade at a dealer to get your taxes back.

In MO you get 180 days to file, regardless of how the transactions was done. As long as you have the right paperwork. Bill of sale, etc.

So if I buy a vehicle at a dealership in February, then sell a vehicle private-party in June. All I need to do is take the paperwork (for both sales) to the DMV and they will mail out a check for the net difference in taxes applied to each sale price.

In other words, the tax handling for doing a trade at a dealership is more CONVENIENT, but it shouldn't be (and is not in my case) a REQUIREMENT.

It's my understanding that many, if not all states, have similar rules to MO. Something about the deal where they're not supposed to tax the same $$$ multiple times.

 

[gravedgr]

Thanks for the feedback, and I hop you're right. On the taxes, we're not talking the same thing. If you trade a car in to a dealer as part of purchasing another car, the calculated sales tax it [new car price - trade value] x tax rate. At 6.6%, a $46,000 trade saves me ~$3,300 in taxes.

 

[ZX3ST]

Thanks for the feedback, and I hop you're right. On the taxes, we're not talking the same thing. If you trade a car in to a dealer as part of purchasing another car, the calculated sales tax it [new car price - trade value] x tax rate. At 6.6%, a $46,000 trade saves me ~$3,300 in taxes.

I'm saying that we ARE talking the same thing.

Purchase price - trade value = net taxable

In a trade situation
60k purchase - 40k trade means you pay taxes on 20k when you title the car.

In my previous example
60k purchase, you pay taxes on 60k when you title.
4 months later you sell something else for 40k. You take paperwork to DMV and you get a credit for 40k worth of taxes.

The net result is the same. You paid taxes on 20k.

This also works in reverse. I can buy at 40k, sell at 60k. I end up with 20k worth of taxes in my pocket.

 

[peoples1234]

Thanks for the feedback, and I hop you're right. On the taxes, we're not talking the same thing. If you trade a car in to a dealer as part of purchasing another car, the calculated sales tax it [new car price - trade value] x tax rate. At 6.6%, a $46,000 trade saves me ~$3,300 in taxes.

NC is like that as well, you have to have the trade on the same invoice/transaction as the purchase to get the benefit of the tax savings. It would be awesome if that wasn't the case though...

 

[gravedgr]

NC is like that as well, you have to have the trade on the same invoice/transaction as the purchase to get the benefit of the tax savings. It would be awesome if that wasn't the case though...

Right. If the exchange is not done at the dealer as part of the same deal, you cannot get the tax benefit. Sounds like MI is different.

 

[ZX3ST]

NC is like that as well, you have to have the trade on the same invoice/transaction as the purchase to get the benefit of the tax savings. It would be awesome if that wasn't the case though...

Right. If the exchange is not done at the dealer as part of the same deal, you cannot get the tax benefit. Sounds like MI is different.

Of the handful of friends I know that live in other states, they operate under similar rules to MO. To be fair, none of them are NC or GA.

Wow. That's shady AF. I'd like to know what that works out to in an effective tax rate on the typical car over its lifetime.

Sorry OP for derailing. Was just trying to help.

I've met many people in my state that were shafting themselves because they didn't know the rules.

 

[gravedgr]

No worries. No info sharing is bad.

 

[V8 Voodoo]

I could not tell from the original post, but check your car insurance coverage. Most car insurances cover diminished value. If you can prove that your car is worth X but you got y because of the accident, they should be writing you a check. In Minnesota, I did insurance defense litigation, and it was a hard fight to win for the insurance company. Basically, find other very similar vehicles with similar miles as a "this is what my car is actually worth". Go to small claims court if they deny your claim. Pretty simple.

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