Author Topic: Fastest $4k Ever....  (Read 9737 times)

COlady

  • Bristles
  • ***
  • Posts: 381
Fastest $4k Ever....
« on: August 30, 2016, 03:32:43 PM »
My employer is going under and liquidating everything. They laid me off and feel bad for me so they're going to sell me the VP's company vehicle - Fully loaded 2014 Ford Explorer Limited for $25,500, $27,221 with tax. It blue books for $32,000. I took it down the street to the Ford dealer and they said they'd buy it off me for $31,000. $3,779 tax free for one day of work. My husband thinks it's a terrible thing to do since they're being nice.... I consider it the severance I didn't get. Opinions???

I found a different job that I start in a couple weeks so while the layoff was unfortunate I'm fine with it.

ketchup

  • Magnum Stache
  • ******
  • Posts: 3948
  • Age: 28
Re: Fastest $4k Ever....
« Reply #1 on: August 30, 2016, 03:34:59 PM »
I say good for you.  They liquidate the vehicle quickly, you make a few bucks, and the Ford dealership gets to do their thing and pass it along at a markup; everyone wins.

trailrated

  • Handlebar Stache
  • *****
  • Posts: 1136
  • Age: 31
  • Location: Bay Area Ca
  • a smooth sea never made a skilled sailor
Re: Fastest $4k Ever....
« Reply #2 on: August 30, 2016, 03:35:52 PM »
Pull the trigger :)

boarder42

  • Walrus Stache
  • *******
  • Posts: 7849
Re: Fastest $4k Ever....
« Reply #3 on: August 30, 2016, 03:36:14 PM »
i'd do it.

v8rx7guy

  • Handlebar Stache
  • *****
  • Posts: 1327
  • Location: Bellingham, WA
Re: Fastest $4k Ever....
« Reply #4 on: August 30, 2016, 03:38:21 PM »
It seems strange to me that a dealer is willing to pay so close to Blue Book value.  Good luck.

COlady

  • Bristles
  • ***
  • Posts: 381
Re: Fastest $4k Ever....
« Reply #5 on: August 30, 2016, 03:40:52 PM »
It seems strange to me that a dealer is willing to pay so close to Blue Book value.  Good luck.

It's because the $32k blue book doesn't consider an upgrade package that the vehicle has - premium leather seats, power third row, heated steering wheel, etc. The window sticker says that it was an additional $3,000 for this package. I tried to do custom blue book and add the options but they weren't available.

COlady

  • Bristles
  • ***
  • Posts: 381
Re: Fastest $4k Ever....
« Reply #6 on: August 30, 2016, 03:43:45 PM »
It seems strange to me that a dealer is willing to pay so close to Blue Book value.  Good luck.

It was purchased new for $44k and only has 20,000 miles on it and it's in perfect condition.

forumname123

  • Stubble
  • **
  • Posts: 126
Re: Fastest $4k Ever....
« Reply #7 on: August 30, 2016, 03:46:29 PM »
I would sell it privately and make even more. You could rest easier knowing you're doing legwork your employer likely wouldn't be able to do, and at least getting a better price than they would have if they just took it to the dealer themselves.

COlady

  • Bristles
  • ***
  • Posts: 381
Re: Fastest $4k Ever....
« Reply #8 on: August 30, 2016, 03:48:11 PM »
I would sell it privately and make even more. You could rest easier knowing you're doing legwork your employer likely wouldn't be able to do, and at least getting a better price than they would have if they just took it to the dealer themselves.

I would but honestly don't really have the time so I'm willing to take the hit. Maybe I could give it a week to sell privately and if that doesn't work then take it to Ford.

v8rx7guy

  • Handlebar Stache
  • *****
  • Posts: 1327
  • Location: Bellingham, WA
Re: Fastest $4k Ever....
« Reply #9 on: August 30, 2016, 04:03:57 PM »
It seems strange to me that a dealer is willing to pay so close to Blue Book value.  Good luck.

It's because the $32k blue book doesn't consider an upgrade package that the vehicle has - premium leather seats, power third row, heated steering wheel, etc. The window sticker says that it was an additional $3,000 for this package. I tried to do custom blue book and add the options but they weren't available.

It sounds like you have yourself pretty convinced that you're going to make out like a bandit... so go for it.  I just really think at minimum you should have this dealer put their offer in writing, signed, etc., before you pulling the trigger.  It just doesn't seem like the dealers that I am familiar with to offer $31K for a 2 year old vehicle straight-up.  Are you sure the dealer isn't quoting you their trade-in offer?
« Last Edit: August 30, 2016, 04:21:45 PM by v8rx7guy »

marty998

  • Walrus Stache
  • *******
  • Posts: 6371
  • Location: Sydney, Oz
Re: Fastest $4k Ever....
« Reply #10 on: August 30, 2016, 05:35:46 PM »
Do they have any other vehicles? Or just this one? :D

chesebert

  • Pencil Stache
  • ****
  • Posts: 749
Re: Fastest $4k Ever....
« Reply #11 on: August 30, 2016, 06:02:48 PM »
It seems strange to me that a dealer is willing to pay so close to Blue Book value.  Good luck.

It's because the $32k blue book doesn't consider an upgrade package that the vehicle has - premium leather seats, power third row, heated steering wheel, etc. The window sticker says that it was an additional $3,000 for this package. I tried to do custom blue book and add the options but they weren't available.

It sounds like you have yourself pretty convinced that you're going to make out like a bandit... so go for it.  I just really think at minimum you should have this dealer put their offer in writing, signed, etc., before you pulling the trigger.  It just doesn't seem like the dealers that I am familiar with to offer $31K for a 2 year old vehicle straight-up.  Are you sure the dealer isn't quoting you their trade-in offer?
+1
Dealer price too high without corresponding purchase to offset dealer loss.

COlady

  • Bristles
  • ***
  • Posts: 381
Re: Fastest $4k Ever....
« Reply #12 on: August 30, 2016, 07:55:44 PM »
It seems strange to me that a dealer is willing to pay so close to Blue Book value.  Good luck.

It's because the $32k blue book doesn't consider an upgrade package that the vehicle has - premium leather seats, power third row, heated steering wheel, etc. The window sticker says that it was an additional $3,000 for this package. I tried to do custom blue book and add the options but they weren't available.

It sounds like you have yourself pretty convinced that you're going to make out like a bandit... so go for it.  I just really think at minimum you should have this dealer put their offer in writing, signed, etc., before you pulling the trigger.  It just doesn't seem like the dealers that I am familiar with to offer $31K for a 2 year old vehicle straight-up.  Are you sure the dealer isn't quoting you their trade-in offer?
+1
Dealer price too high without corresponding purchase to offset dealer loss.

No trade required. They said they would cut me a check.  With  the luxury add on package they can probably sell the vehicle for $34k. That's a pretty easy $3k for them. We're located in Denver.. the SUV capitol of the world :).

COlady

  • Bristles
  • ***
  • Posts: 381
Re: Fastest $4k Ever....
« Reply #13 on: August 30, 2016, 07:56:55 PM »
It seems strange to me that a dealer is willing to pay so close to Blue Book value.  Good luck.

It's because the $32k blue book doesn't consider an upgrade package that the vehicle has - premium leather seats, power third row, heated steering wheel, etc. The window sticker says that it was an additional $3,000 for this package. I tried to do custom blue book and add the options but they weren't available.

It sounds like you have yourself pretty convinced that you're going to make out like a bandit... so go for it.  I just really think at minimum you should have this dealer put their offer in writing, signed, etc., before you pulling the trigger.  It just doesn't seem like the dealers that I am familiar with to offer $31K for a 2 year old vehicle straight-up.  Are you sure the dealer isn't quoting you their trade-in offer?
+1
Dealer price too high without corresponding purchase to offset dealer loss.
I'm going to take it to the dealer tomorrow and get a cash buyout appraisal in writing.

MoonLiteNite

  • Bristles
  • ***
  • Posts: 413
Re: Fastest $4k Ever....
« Reply #14 on: August 31, 2016, 04:34:08 AM »
Unless you signed a paper saying you wouldn't sell it, it is none of their business.

thd7t

  • Handlebar Stache
  • *****
  • Posts: 1308
Re: Fastest $4k Ever....
« Reply #15 on: August 31, 2016, 06:34:51 AM »
You should definitely do this. It's not their business what you do with a car that you buy.

use2betrix

  • Handlebar Stache
  • *****
  • Posts: 1692
Re: Fastest $4k Ever....
« Reply #16 on: August 31, 2016, 08:29:01 AM »
Blue book value consists of any added packages. You can add all that stuff into blue book when calculating the value of the vehicle.

I assume they are giving you the clean trade in value and not the clean retail/private party value. If the retail value is 32,000, there's zero chance they are going to get 34,000. No one pays more than clean retail value on a regular vehicle virtually ever. Maybe rare or collector vehicles, but not a 2 year old SUV.

mamagoose

  • Bristles
  • ***
  • Posts: 357
  • Location: FL
Re: Fastest $4k Ever....
« Reply #17 on: August 31, 2016, 08:31:17 AM »
I would sell it privately and make even more. You could rest easier knowing you're doing legwork your employer likely wouldn't be able to do, and at least getting a better price than they would have if they just took it to the dealer themselves.

I would but honestly don't really have the time so I'm willing to take the hit. Maybe I could give it a week to sell privately and if that doesn't work then take it to Ford.

How do you not have the time - you just got laid off? :-P

COlady

  • Bristles
  • ***
  • Posts: 381
Re: Fastest $4k Ever....
« Reply #18 on: August 31, 2016, 09:30:21 AM »
I would sell it privately and make even more. You could rest easier knowing you're doing legwork your employer likely wouldn't be able to do, and at least getting a better price than they would have if they just took it to the dealer themselves.

I would but honestly don't really have the time so I'm willing to take the hit. Maybe I could give it a week to sell privately and if that doesn't work then take it to Ford.

How do you not have the time - you just got laid off? :-P

I have 18 months old twin boys! Try selling a car privately with 2 toddlers...not gonna happen.

thd7t

  • Handlebar Stache
  • *****
  • Posts: 1308
Re: Fastest $4k Ever....
« Reply #19 on: August 31, 2016, 09:36:03 AM »
I would sell it privately and make even more. You could rest easier knowing you're doing legwork your employer likely wouldn't be able to do, and at least getting a better price than they would have if they just took it to the dealer themselves.

I would but honestly don't really have the time so I'm willing to take the hit. Maybe I could give it a week to sell privately and if that doesn't work then take it to Ford.

How do you not have the time - you just got laid off? :-P

I have 18 months old twin boys! Try selling a car privately with 2 toddlers...not gonna happen.
You are going to get around a $2000/hr. return for the dealer sale. Could you get more money? Maybe, but you don't know how much time it would take you. Go with the plan.

COlady

  • Bristles
  • ***
  • Posts: 381
Re: Fastest $4k Ever....
« Reply #20 on: August 31, 2016, 09:49:16 AM »
Blue book value consists of any added packages. You can add all that stuff into blue book when calculating the value of the vehicle.

I assume they are giving you the clean trade in value and not the clean retail/private party value. If the retail value is 32,000, there's zero chance they are going to get 34,000. No one pays more than clean retail value on a regular vehicle virtually ever. Maybe rare or collector vehicles, but not a 2 year old SUV.

Like I said, kbb.com didn't have the options package available on this vehicle so the value of $32k retail didn't include the $3k option package. I realize you can add options on kbb but the options available on the website to add didn't match the actual options on the vehicle (the vp of the company special ordered it).

COlady

  • Bristles
  • ***
  • Posts: 381
Re: Fastest $4k Ever....
« Reply #21 on: August 31, 2016, 10:14:46 AM »
So I thought about this more last night and I think I can get out of paying the 7.5% sales tax on the $25,500 purchase price. Please let me know if you think this will work...

1) Write check to company (they said they'd take person check) or get loan from CU at 2.75% (already approved)
2) Company will sign over title to me or bank
3) I will drive it directly over to the Ford dealer and sell it to them

I'm trying to avoid having to pay the sales tax by never registering the vehicle. Is this going to create a titling issue though??? Can the title be transferred to me or the bank without paying the sales tax? I think you pay the sales tax on a private party sale when you go in to register the vehicle so if it's never registered can I get around paying the sales tax?

vivophoenix

  • Bristles
  • ***
  • Posts: 430
Re: Fastest $4k Ever....
« Reply #22 on: August 31, 2016, 10:45:33 AM »
So I thought about this more last night and I think I can get out of paying the 7.5% sales tax on the $25,500 purchase price. Please let me know if you think this will work...

1) Write check to company (they said they'd take person check) or get loan from CU at 2.75% (already approved)
2) Company will sign over title to me or bank
3) I will drive it directly over to the Ford dealer and sell it to them

I'm trying to avoid having to pay the sales tax by never registering the vehicle. Is this going to create a titling issue though??? Can the title be transferred to me or the bank without paying the sales tax? I think you pay the sales tax on a private party sale when you go in to register the vehicle so if it's never registered can I get around paying the sales tax?

isnt the dealer going to leave a paper trail, they have to write YOU a check, which means YOU have to take possession.

COlady

  • Bristles
  • ***
  • Posts: 381
Re: Fastest $4k Ever....
« Reply #23 on: August 31, 2016, 11:44:35 AM »
So I thought about this more last night and I think I can get out of paying the 7.5% sales tax on the $25,500 purchase price. Please let me know if you think this will work...

1) Write check to company (they said they'd take person check) or get loan from CU at 2.75% (already approved)
2) Company will sign over title to me or bank
3) I will drive it directly over to the Ford dealer and sell it to them

I'm trying to avoid having to pay the sales tax by never registering the vehicle. Is this going to create a titling issue though??? Can the title be transferred to me or the bank without paying the sales tax? I think you pay the sales tax on a private party sale when you go in to register the vehicle so if it's never registered can I get around paying the sales tax?

isnt the dealer going to leave a paper trail, they have to write YOU a check, which means YOU have to take possession.

Yeah I agree that I will have to take possession... I can't float the title. My question is, can I take possession without paying sales tax assuming I never actually register the vehicle.

Axecleaver

  • Magnum Stache
  • ******
  • Posts: 3370
  • Location: New York
Re: Fastest $4k Ever....
« Reply #24 on: August 31, 2016, 12:16:30 PM »
I was going to ask you how you planned to evade the sales tax. You see this kind of thing all the time with lease buy-outs. The dealership would be the authority on this issue, and they'll be incentivized to help you solve it. If it's solvable. FWIW, I don't think there's a legal way to avoid paying it.

COlady

  • Bristles
  • ***
  • Posts: 381
Re: Fastest $4k Ever....
« Reply #25 on: August 31, 2016, 03:35:36 PM »
I was going to ask you how you planned to evade the sales tax. You see this kind of thing all the time with lease buy-outs. The dealership would be the authority on this issue, and they'll be incentivized to help you solve it. If it's solvable. FWIW, I don't think there's a legal way to avoid paying it.

Good call. I'll talk to the dealer about it tomorrow.

Secret Agent Mom

  • 5 O'Clock Shadow
  • *
  • Posts: 25
Re: Fastest $4k Ever....
« Reply #26 on: August 31, 2016, 09:55:47 PM »
I don't think it works that way unless you are a car dealer- when you get the title signed into your name, you will need to re-title it and pay the sales tax unless you have a dealer number.  If you are getting a loan w/ a lienholder, that's more paperwork. 


A few other thoughts- put this on craigslist for a higher price for one week and see what happens (yes, I've had toddler twins, do it anyway).  Why give that money to a car dealership?   If you don't want a great deal, pass it on!

Are you sure you don't need or want to upgrade your own vehicle?  I have no idea what you drive, but be sure you don't want to sell your other vehicles and upgrade before you just sell it off.  A 2014 would have many years of good driving in it if you will be needing to get a newer vehicle as your kids grow. 

I find it really tacky to say you will buy it w/ the intention of selling it the same day- they are doing you a favor by selling it cheaper.  I would just say no if I wasn't interested in using the vehicle.  You will need to mess w/ the loan/lienholder thing, registering vehicle, paying sales tax.  I don't know, but it just feels wrong to me.

neo von retorch

  • Magnum Stache
  • ******
  • Posts: 3340
  • Location: SE PA
    • Fi@retorch - personal finance tracking
Re: Fastest $4k Ever....
« Reply #27 on: September 01, 2016, 07:30:31 AM »
I find it really tacky to say you will buy it w/ the intention of selling it the same day- they are doing you a favor by selling it cheaper.  I would just say no if I wasn't interested in using the vehicle.  You will need to mess w/ the loan/lienholder thing, registering vehicle, paying sales tax.  I don't know, but it just feels wrong to me.

I disagree. What you have here are transactions. You are buying a vehicle for the price that the seller wishes to sell. You are selling a vehicle for the price that the buyer is willing to buy. Intention isn't really relevant. Everything that is sold is "with the intention that you use it" and yet - there are entire industries based around reselling things.

Axecleaver

  • Magnum Stache
  • ******
  • Posts: 3370
  • Location: New York
Re: Fastest $4k Ever....
« Reply #28 on: September 01, 2016, 09:51:48 AM »
For perspective, her company is laying off all of its contractors and employees. So they're trying to find ways to help their folks out while getting rid of their marketable assets. They're probably selling them for prices that a wholesaler is offering. I got a similar offer to buy things when my .com melted down in 2001. We had a big auction in our office prior to layoff day. Bought a $10k computer for $350. Some folks got those iconic Herman Miller chairs that .com's used to buy for $2k a piece for a couple hundred dollars. It was something to remember from the silly .com days.

boarder42

  • Walrus Stache
  • *******
  • Posts: 7849
Re: Fastest $4k Ever....
« Reply #29 on: September 01, 2016, 11:08:20 AM »
I find it really tacky to say you will buy it w/ the intention of selling it the same day- they are doing you a favor by selling it cheaper.  I would just say no if I wasn't interested in using the vehicle.  You will need to mess w/ the loan/lienholder thing, registering vehicle, paying sales tax.  I don't know, but it just feels wrong to me.

I disagree. What you have here are transactions. You are buying a vehicle for the price that the seller wishes to sell. You are selling a vehicle for the price that the buyer is willing to buy. Intention isn't really relevant. Everything that is sold is "with the intention that you use it" and yet - there are entire industries based around reselling things.

including the new buyer of the vehicle. 

and the thought of keeping a 2014 SUV for personal use is absurd even if you dont factor in the value of it at 32k. or even the sale price of 28k

boarder42

  • Walrus Stache
  • *******
  • Posts: 7849
Re: Fastest $4k Ever....
« Reply #30 on: September 01, 2016, 11:09:57 AM »
For perspective, her company is laying off all of its contractors and employees. So they're trying to find ways to help their folks out while getting rid of their marketable assets. They're probably selling them for prices that a wholesaler is offering. I got a similar offer to buy things when my .com melted down in 2001. We had a big auction in our office prior to layoff day. Bought a $10k computer for $350. Some folks got those iconic Herman Miller chairs that .com's used to buy for $2k a piece for a couple hundred dollars. It was something to remember from the silly .com days.

i do this with company fleet vehicles annually.  they are usually offered at wholesale rates about 4-5k under what i can get on the private market.  so i put in for most of them with the 100% intention of selling it. except the hybrid i got back when we were 'going green' thats the daily driver.

Tjat

  • Pencil Stache
  • ****
  • Posts: 562
Re: Fastest $4k Ever....
« Reply #31 on: September 01, 2016, 11:13:21 AM »
Why would your husband be against selling this vehicle, that you likely don't need?

Lunasol

  • Stubble
  • **
  • Posts: 221
  • Location: MX
Re: Fastest $4k Ever....
« Reply #32 on: September 01, 2016, 11:17:24 AM »
I find it really tacky to say you will buy it w/ the intention of selling it the same day

I find it super smart!!

forumname123

  • Stubble
  • **
  • Posts: 126
Re: Fastest $4k Ever....
« Reply #33 on: September 12, 2016, 12:17:45 PM »
I would sell it privately and make even more. You could rest easier knowing you're doing legwork your employer likely wouldn't be able to do, and at least getting a better price than they would have if they just took it to the dealer themselves.

I would but honestly don't really have the time so I'm willing to take the hit. Maybe I could give it a week to sell privately and if that doesn't work then take it to Ford.

How do you not have the time - you just got laid off? :-P

I have 18 months old twin boys! Try selling a car privately with 2 toddlers...not gonna happen.

Then how the heck did you manage having a job? I bet you would make more per hour selling the car privately than you did at your job anyway (likely multiple times more). I think you're overestimating the work involved in selling a vehicle. "Not gonna happen"? If you just don't want to, that's fine, but I'm sure plenty of others have managed to sell a car while having a herd of toddlers AND a job.

v8rx7guy

  • Handlebar Stache
  • *****
  • Posts: 1327
  • Location: Bellingham, WA
Re: Fastest $4k Ever....
« Reply #34 on: September 12, 2016, 01:58:58 PM »
Curious minds want to know how this ended up for you

stoaX

  • Pencil Stache
  • ****
  • Posts: 509
  • Location: SoCal
  • 'tis nothing good nor bad but thinking makes it so
Re: Fastest $4k Ever....
« Reply #35 on: September 12, 2016, 02:07:08 PM »
I find it really tacky to say you will buy it w/ the intention of selling it the same day

I find it super smart!!

I gotta agree with Lunasol and Neo Van Retorch on this one.  Everybody involved are consenting adults with sound minds willingly entering to these transactions and presumably happy to do so - sounds good to me.

COlady

  • Bristles
  • ***
  • Posts: 381
Re: Fastest $4k Ever....
« Reply #36 on: September 13, 2016, 09:10:02 PM »
Curious minds want to know how this ended up for you

I bought the car late last week. I didn't ask her to but the corporate secretary put that I purchased the car for $1 on the bill of sale. No sales tax! woo hoo! We needed a larger vehicle for our babies (yeah I know some people would say it's not mustacian) so I registered it and I'm going to see how I like it. If I decide to sell it in a year then no big deal, I won't lose money. I really love it so far.

neo von retorch

  • Magnum Stache
  • ******
  • Posts: 3340
  • Location: SE PA
    • Fi@retorch - personal finance tracking
Re: Fastest $4k Ever....
« Reply #37 on: September 14, 2016, 06:39:24 AM »
Interesting... in PA, unless it's immediate family, and you supply an affidavit of gift, the DMV uses the blue book value, and you cannot "purchase" the car for less than 70%, at least as far as registration goes. So you still have to pay tax on 70% x private party KBB value. Might be different where you are.

COlady

  • Bristles
  • ***
  • Posts: 381
Re: Fastest $4k Ever....
« Reply #38 on: September 14, 2016, 08:57:40 AM »
Interesting... in PA, unless it's immediate family, and you supply an affidavit of gift, the DMV uses the blue book value, and you cannot "purchase" the car for less than 70%, at least as far as registration goes. So you still have to pay tax on 70% x private party KBB value. Might be different where you are.

I thought they would do some kind of valuation, but nope, I paid 7% sales tax on $1. I guess every county has their own rules. I certainly didn't argue....

patchyfacialhair

  • Handlebar Stache
  • *****
  • Posts: 1116
  • Age: 29
Re: Fastest $4k Ever....
« Reply #39 on: September 14, 2016, 09:00:47 AM »
Interesting... in PA, unless it's immediate family, and you supply an affidavit of gift, the DMV uses the blue book value, and you cannot "purchase" the car for less than 70%, at least as far as registration goes. So you still have to pay tax on 70% x private party KBB value. Might be different where you are.

I thought they would do some kind of valuation, but nope, I paid 7% sales tax on $1. I guess every county has their own rules. I certainly didn't argue....

My FIL did the same thing for me when I bought his car. CO registration/vehicle sales tax is not bad for older used vehicles going forward (like $70/yr),  so it's nice to have very few added costs to maintenance/insurance/gas.

v8rx7guy

  • Handlebar Stache
  • *****
  • Posts: 1327
  • Location: Bellingham, WA
Re: Fastest $4k Ever....
« Reply #40 on: September 14, 2016, 09:14:38 AM »
So rather than making the "fastest $4k ever", you spent $28K on a practically new SUV during a time without a job and with two baby/toddler twins?  I don't want to beat you up too badly, you've already admitted it's not very mustachian, but how did this change so quickly?

Lunasol

  • Stubble
  • **
  • Posts: 221
  • Location: MX
Re: Fastest $4k Ever....
« Reply #41 on: September 14, 2016, 09:42:55 AM »
So rather than making the "fastest $4k ever", you spent $28K on a practically new SUV during a time without a job and with two baby/toddler twins?  I don't want to beat you up too badly, you've already admitted it's not very mustachian, but how did this change so quickly?

I think she has a new job now tho, but still, this thread turned from fastest 4k earned to fastest 28k spent u_u

COlady

  • Bristles
  • ***
  • Posts: 381
Re: Fastest $4k Ever....
« Reply #42 on: September 14, 2016, 10:23:04 AM »
So rather than making the "fastest $4k ever", you spent $28K on a practically new SUV during a time without a job and with two baby/toddler twins?  I don't want to beat you up too badly, you've already admitted it's not very mustachian, but how did this change so quickly?

I think she has a new job now tho, but still, this thread turned from fastest 4k earned to fastest 28k spent u_u

Yup, precisely. Paid cash for it too (will get loan when retitled at 2.79% since it's cheap money). I start a new job on Monday....

We have approx. $500k in investments and $200k in home equity. No debt. Net Worth of around $725k with other assets at age 32. Our twins' college has been fully funded by grandparents already (approx. $45k in 529 accounts). We save plenty of money so I'm not going to beat myself up about it. My sedan really wasn't working for twins in carseats with stroller in trunk. I think we're doing okay.

boarder42

  • Walrus Stache
  • *******
  • Posts: 7849
Re: Fastest $4k Ever....
« Reply #43 on: September 14, 2016, 03:53:00 PM »
still dont get why you wouldnt sell it and get something much more economically priced.  even half that buys a hell of a lot of SUV.  you're just riding a depreciation train regardless of if you can afford it.

Lunasol

  • Stubble
  • **
  • Posts: 221
  • Location: MX
Re: Fastest $4k Ever....
« Reply #44 on: September 14, 2016, 04:21:17 PM »
So rather than making the "fastest $4k ever", you spent $28K on a practically new SUV during a time without a job and with two baby/toddler twins?  I don't want to beat you up too badly, you've already admitted it's not very mustachian, but how did this change so quickly?

I think she has a new job now tho, but still, this thread turned from fastest 4k earned to fastest 28k spent u_u

Yup, precisely. Paid cash for it too (will get loan when retitled at 2.79% since it's cheap money). I start a new job on Monday....

We have approx. $500k in investments and $200k in home equity. No debt. Net Worth of around $725k with other assets at age 32. Our twins' college has been fully funded by grandparents already (approx. $45k in 529 accounts). We save plenty of money so I'm not going to beat myself up about it. My sedan really wasn't working for twins in carseats with stroller in trunk. I think we're doing okay.

Your numbers look great :) Glad you get to do with your assets/money whatever you want. This is part of having FU money and you've done considerably well in the past which makes it easier to make decisions like this.

I was a little disappointed tho cause everyone (or at least me) was expecting you'd get that 4K check, but given that you already have 700k NW, 4K is a really small number compared to it.

Bicycle_B

  • Handlebar Stache
  • *****
  • Posts: 1825
  • Mustachian-ish in Live Music Capital of the World
Re: Fastest $4k Ever....
« Reply #45 on: September 14, 2016, 05:13:30 PM »
So rather than making the "fastest $4k ever", you spent $28K on a practically new SUV during a time without a job and with two baby/toddler twins?  I don't want to beat you up too badly, you've already admitted it's not very mustachian, but how did this change so quickly?

I think she has a new job now tho, but still, this thread turned from fastest 4k earned to fastest 28k spent u_u

Yup, precisely. Paid cash for it too (will get loan when retitled at 2.79% since it's cheap money). I start a new job on Monday....

We have approx. $500k in investments and $200k in home equity. No debt. Net Worth of around $725k with other assets at age 32. Our twins' college has been fully funded by grandparents already (approx. $45k in 529 accounts). We save plenty of money so I'm not going to beat myself up about it. My sedan really wasn't working for twins in carseats with stroller in trunk. I think we're doing okay.

There may be a hidden cost besides the 28k.  Now that the purchase price is registered as $1, the IRS is expected by federal tax code to view any proceeds from selling the car later as a capital gain (less the $1).  Not sure whether IRS will actually catch you, but if they do, you could end up on the hook for capital gains tax plus any fines/fees if the sale is not reported as income.  Unless you want to tell the auditor "it's not really a capital gain, I defrauded the county government".

That detail aside, congratulations on your strong overall financial condition.  A bit amused by the savings-to-spending flip, but have my own rational choices to work on.  Take care.

JLee

  • Walrus Stache
  • *******
  • Posts: 5559
Re: Fastest $4k Ever....
« Reply #46 on: September 14, 2016, 05:37:19 PM »
So rather than making the "fastest $4k ever", you spent $28K on a practically new SUV during a time without a job and with two baby/toddler twins?  I don't want to beat you up too badly, you've already admitted it's not very mustachian, but how did this change so quickly?

I think she has a new job now tho, but still, this thread turned from fastest 4k earned to fastest 28k spent u_u

Yup, precisely. Paid cash for it too (will get loan when retitled at 2.79% since it's cheap money). I start a new job on Monday....

We have approx. $500k in investments and $200k in home equity. No debt. Net Worth of around $725k with other assets at age 32. Our twins' college has been fully funded by grandparents already (approx. $45k in 529 accounts). We save plenty of money so I'm not going to beat myself up about it. My sedan really wasn't working for twins in carseats with stroller in trunk. I think we're doing okay.

There may be a hidden cost besides the 28k.  Now that the purchase price is registered as $1, the IRS is expected by federal tax code to view any proceeds from selling the car later as a capital gain (less the $1).  Not sure whether IRS will actually catch you, but if they do, you could end up on the hook for capital gains tax plus any fines/fees if the sale is not reported as income.  Unless you want to tell the auditor "it's not really a capital gain, I defrauded the county government".

That detail aside, congratulations on your strong overall financial condition.  A bit amused by the savings-to-spending flip, but have my own rational choices to work on.  Take care.

That's kinda messed up, when you can't take a tax credit for selling a car for less than what you paid for it...

Bicycle_B

  • Handlebar Stache
  • *****
  • Posts: 1825
  • Mustachian-ish in Live Music Capital of the World
Re: Fastest $4k Ever....
« Reply #47 on: September 14, 2016, 05:55:04 PM »
So rather than making the "fastest $4k ever", you spent $28K on a practically new SUV during a time without a job and with two baby/toddler twins?  I don't want to beat you up too badly, you've already admitted it's not very mustachian, but how did this change so quickly?

I think she has a new job now tho, but still, this thread turned from fastest 4k earned to fastest 28k spent u_u

Yup, precisely. Paid cash for it too (will get loan when retitled at 2.79% since it's cheap money). I start a new job on Monday....

We have approx. $500k in investments and $200k in home equity. No debt. Net Worth of around $725k with other assets at age 32. Our twins' college has been fully funded by grandparents already (approx. $45k in 529 accounts). We save plenty of money so I'm not going to beat myself up about it. My sedan really wasn't working for twins in carseats with stroller in trunk. I think we're doing okay.

There may be a hidden cost besides the 28k.  Now that the purchase price is registered as $1, the IRS is expected by federal tax code to view any proceeds from selling the car later as a capital gain (less the $1).  Not sure whether IRS will actually catch you, but if they do, you could end up on the hook for capital gains tax plus any fines/fees if the sale is not reported as income.  Unless you want to tell the auditor "it's not really a capital gain, I defrauded the county government".

That detail aside, congratulations on your strong overall financial condition.  A bit amused by the savings-to-spending flip, but have my own rational choices to work on.  Take care.

That's kinda messed up, when you can't take a tax credit for selling a car for less than what you paid for it...

It does seem unfair, doesn't it?

I think it's loophole prevention.  Speculating here, but if selling private property for a gain were exempt from capital gains tax, business people would just classify their equipment as private.  Nothing in the tax code gives you a tax break for losing money on a declining asset, though, unless it's a business expense.