Price negotiated from MSRP

[JoeCo]

For those looking to sell their trade in, I recently sold a vehicle to AutoNation, they were higher than Carvana, Vroom, CarMax and all others.

Thanks for the heads up, will check with them. My carvana offer recently came up about $3,000 on my 2017 longhorn, I wish my new truck would start being built so I could cash this one out soon.

 

[JoeCo]

In many states, the problem with selling to another dealer, or a third-party, is that you lose the tax benefit on the trade. Typically the tax benefit far outweighs the additional money you got by selling it elsewhere.

This has always been the case for me, but the $3,000 more I can get from carvana right now would cover the additional taxes and then some. Hoping to be able to maintain that offer (or increase it) over the next few months while I am waiting.

 

[SergsRam]

Thanks for the heads up, will check with them. My carvana offer recently came up about $3,000 on my 2017 longhorn, I wish my new truck would start being built so I could cash this one out soon.

After my initial online quote, I went back like a week later and did a new quote and it by was $500.00 higher.

 

[Horty222]

I sold my 2012 Maxima Sv for 3k higher than KBB and what Carmax was offering. Now waiting for my Ram order to get built!

 

[JoeCo]

After my initial online quote, I went back like a week later and did a new quote and it by was $500.00 higher.

That's awesome, I'll definitely be keeping an eye on both AutoNation and carvana. AutoNation got back to me at $1500 more than carvana, I wish I could sell now but I have to wait until I know my new truck is on its way at least.

Do you know what autonations process is compared to carvana? I liked hearing that carvana cuts you a check right when they pick up the truck without taking the vehicle anywhere to inspect. I'd sacrifice a little money for that convenience, but if autonation is the same then I'll happily sell to either once the time comes.

 

[Cliffrunner88]

Used prices are so high, that if you MUST buy now, buy new. If you don't have to buy. Put off the purchase until supply normalizes and rebates return.

Is this normalization not expected until 2023? Don't want to wait that long, lol. (I know no one really knows but what's the general consensus?)

 

[Cliffrunner88]

In many states, the problem with selling to another dealer, or a third-party, is that you lose the tax benefit on the trade. Typically the tax benefit far outweighs the additional money you got by selling it elsewhere.

How much is the tax benefit? I'm (possibly) trading in my 2005 Mitsubishi Eclipse GTS (122,700 miles) and dealers are only offering $1,500. If I can sell it private party for $3,000 then I just figured I would do that. Can someone explain how the tax savings works and how much it is? I'm in FL if that makes a difference?

 

[Cliffrunner88]

Only high gas prices will bring the price down. But ever increasing MSRPs are here to stay, they will just increase rebates.

I'm debating right now what to do. It isn't a secret I don't love the eTorque on my truck I got at the end of September. Getting more used to it, but still would rather not have it. I only have 4200 miles on it. Carvana will give me about $47,500 (MSRP $55,135), I paid $43,500 new. I would get a Longhorn from one of the two volume dealers mentioned on here frequently, but would like to see if MY 2022 has UConnect5. I don't see inventory getting much better for about a year from now, with COVID still a thing and now the chip shortage. I would think I could still get a very good trade-in around November or December and a better deal on a possible 2022.

What don't you like about the eTorque?

 

[Nova90]

How much is the tax benefit? I'm (possibly) trading in my 2005 Mitsubishi Eclipse GTS (122,700 miles) and dealers are only offering $1,500. If I can sell it private party for $3,000 then I just figured I would do that. Can someone explain how the tax savings works and how much it is? I'm in FL if that makes a difference?

Usually, the price they are giving you for your trade-in reduces the purchase price & hence the tax you pay. For example, if the new truck is $50,000 and the dealer gives you $1,500 for your trade-in allowance, you would pay sales tax on $48,500 (selling price - less trade) for the new truck. So, your savings would be $1,500 x your sales tax rate (6% in PA). If you can get $3,000 selling privately vs. $1,500 trade-in allowance...there will be no tax benefit & you should sell it on your own & gain the additional $$.

 

[securityguy]

Usually, the price they are giving you for your trade-in reduces the purchase price & hence the tax you pay. For example, if the new truck is $50,000 and the dealer gives you $1,500 for your trade-in allowance, you would pay sales tax on $48,500 (selling price - less trade) for the new truck. So, your savings would be $1,500 x your sales tax rate (6% in PA). If you can get $3,000 selling privately vs. $1,500 trade-in allowance...there will be no tax benefit & you should sell it on your own & gain the additional $$.

EXACTLY...THIS^^^

 

[Silent Bob]

How much is the tax benefit? I'm (possibly) trading in my 2005 Mitsubishi Eclipse GTS (122,700 miles) and dealers are only offering $1,500. If I can sell it private party for $3,000 then I just figured I would do that. Can someone explain how the tax savings works and how much it is? I'm in FL if that makes a difference?

When you buy a new car and trade in your old car, the amount of sales tax you pay depends on state and local sales tax rates and whether the taxable purchase price is figured before or after you subtract your trade-in allowance. In most states, you will pay the sales tax on the value of your new car minus the amount of your trade-in.

Seven States Do Not Allow Trade-In Tax Credit

The following 6 states, as of 9/2020, do not offer tax credit on trades.

California

Hawaii

Kentucky

Maryland

Michigan

Virginia

In the following 3 states, it is not an issue, as they do not charge sales tax:

Montana

New Hampshire

Oregon

So if your state is not listed above, you are able to get the taxable amount in a transaction reduced by the amount of the trade-in item.,

 

[Eldodroptop]

Is this normalization not expected until 2023? Don't want to wait that long, lol. (I know no one really knows but what's the general consensus?)

It is absolutely impossible to make an intelligent forecast. The market has been disrupted in more ways than anyone in the industry could have dreamed. Covid-19 forced dealerships to severely cut staffing a year ago when the shutdowns hit and sales tanked, EVERYONE in the car biz was certain that Armageddon was nigh. Armageddon was short lived and as sales rebounded dealerships adapted to the short staffing and put in new procedures to adapt. The ultimate result of this is eye opening, dealerships are posting record high real profits on fewer units sold. This has led many to believe that constrained production of new cars and the lower inventory as a result are going to be an ongoing fact of life, bottom line, it’s profitable... The used wholesale market has been hit from the lower new car inventory because if you don’t have as many new cars to sell you will receive that many fewer trades. But that is an oversimplification, part of the used car wholesale bubble is absolutely due to Carvana, CarMax etc.. Carvana/CarMax are paying OVER retail for late model cars either buying from the auctions or from the public. Their business model is based on making profit from the back end of the deal selling service contracts and finance, and subsequently squeezing the brick and mortar dealerships into having to overpay severely for good used inventory. Even if/when production of new cars returns to “normal”, the underlying fact of the Carvana business model will not change. Carvana is going to overpay for late model inventory. That influence is going to keep wholesale prices very high. The higher used vehicle pricing is going to influence lower rebates and incentives on new cars because the gap in used vs new price points cannot be this narrow. In the end, dealerships and manufacturers are going to make a killing and the consumer is going to PAY.

 

[mtehonica]

Awesome. Curious who was your sales guy?

Robert was my sales guy - really nice guy. For anyone making the trip, beware, the area is in bad shape from Hurricane Laura last year - lots of rebuilding still happen - as in, hotels without windows still and only the highest floors are open

Guess this is my contribution to helping rebuild the area and stimulating the economy... even if Biden did screw me out of any stimmy

 

[wallyuwl]

What don't you like about the eTorque?

Also trying to get past page 666...

It is the regenerative braking I don't like. The smooth shifting is great, power good, but when slowing down around 15-20 mph it kind of brakes a little for you to recharge the 48v battery, kind of like engine braking. Also don't love the auto stop where it shuts off at lights, but not a huge deal.

 

[Genxeration]

When you buy a new car and trade in your old car, the amount of sales tax you pay depends on state and local sales tax rates and whether the taxable purchase price is figured before or after you subtract your trade-in allowance. In most states, you will pay the sales tax on the value of your new car minus the amount of your trade-in.

Seven States Do Not Allow Trade-In Tax Credit

The following 7 states, as of 9/2020, do not offer tax credit on trades.

California

Hawaii

Illinois

Kentucky

Maryland

Michigan

Virginia

In the following 3 states, it is not an issue, as they do not charge sales tax:

Montana

New Hampshire

Oregon

So if your state is not listed above, you are able to get the taxable amount in a transaction reduced by the amount of the trade-in item.,

I guess it’s never been a consideration for me since South Carolina sales tax caps at $500 on a vehicle purchase. It was actually $300 until a few years back.

 

[JoeCo]

I guess it’s never been a consideration for me since South Carolina sales tax caps at $500 on a vehicle purchase. It was actually $300 until a few years back.

That sounds nice, the tax on my truck without trade is nearly $5,000 here in NY. Gets cut about in half with the trade in.

 

[Genxeration]

That sounds nice, the tax on my truck without trade is nearly $5,000 here in NY. Gets cut about in half with the trade in.

Ouch! That’s a hefty sales tax. Do you guys also have to pay county or registration tax on top of sales tax? For example, I’ll have to pay a county tax of about $1,300 on a $75k truck before i can get my license plate issued.

 

[jimothy]

Robert was my sales guy - really nice guy. For anyone making the trip, beware, the area is in bad shape from Hurricane Laura last year - lots of rebuilding still happen - as in, hotels without windows still and only the highest floors are open

That's too bad; hopefully the area bounces back.

When it's time to pick up my truck, I'm contemplating taking my wife and son and turning into a mini-vacation. But maybe the Lake Charles area isn't a good destination right now? I'll have to see if any nearby areas (Galveston, perhaps?) faired any better.

 

[greenlawnracing]

I sold my 2012 Maxima Sv for 3k higher than KBB and what Carmax was offering. Now waiting for my Ram order to get built!

Do you mind sharing some details about your Maxima? And your selling transaction? I just listed my 2012 with 140 K earlier this week

 

[Cliffrunner88]

Also trying to get past page 666...

It is the regenerative braking I don't like. The smooth shifting is great, power good, but when slowing down around 15-20 mph it kind of brakes a little for you to recharge the 48v battery, kind of like engine braking. Also don't love the auto stop where it shuts off at lights, but not a huge deal.

I think I've seen a review where you can turn off the auto shutoff at lights in the settings.