Author Topic: How to sell new car for old car  (Read 3481 times)

FastStache

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How to sell new car for old car
« on: December 03, 2014, 11:43:53 AM »
I want to pull the trigger on getting rid of my two year car for an older car. We should only be putting about 5 K miles on it per year now.

I went to a used car dealership just to get an idea of what I can get for my car, and what a used car will cost from a dealer. I didn't like the numbers at all and walked away.

I'm guessing I'm going to have to do this with private sellers to make it worthwhile.

Current Car
2013 Ford Escape about 12.5K miles
dealer offered 14K, negotiable to 15K probably.
Guessing I could get 16K for it through private sellers, and it has about 800 dollars of damage on the side panel, from a quote
Current Loan is 20K since we rolled an upside down car into the loan

Desired used car
2005-2008 Honda odyssey with about 100K miles on it for under 8K

I'm shooting for at least 7K, hoping for 8 or 9K in improved net worth with this deal, and a better insurance rate, with a higher repair cost.

1. Do I need to pay off the loan to get the title? I have the funds to do so, especially if I plan to sell the car right after.
2. How do I get people to pay me and not rip me off?
3. How do I purchase the odyssey and get it inspected to check out mechanical issues?
4. What is the best way to pay off the odyssey?
5. My current car is under warranty does this cover me in case of any issues?
6. Are there any tax implications from doing this?
7. Is craigslist my best bet for finding a used car?

Any help is greatly appreciated.

gimp

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Re: How to sell new car for old car
« Reply #1 on: December 03, 2014, 12:08:44 PM »
2. Cash is king. On the other hand, $16k in cash is a bit odd - among other things, banks are unlikely to let one withdraw so much without advance warning and approval. A simple solution is a cashier's check. You go to the buyer's bank together, ideally where you also have an account; you watch the buyer get a cashier's check / money order; you go to your bank and deposit it. Cashier's checks and money orders are essentially cash, and cash is king. (If the buyer wants to pay in benjamins, it's probably a good idea to watch them be withdrawn from the bank - you don't want any fakes slipped in...)

3. Basically, you negotiate the price assuming everything is as stated, but you demand that the car be first driven to a mechanic you trust to do an inspection. You pay for the inspection ($100, maybe $200, depending on where you live and what labor rates are). Ideally you do this right on the spot, though it might be an overnight affair; the mechanic tells you his opinion and what's wrong and what might be wrong. If the buyer refuses to have it inspected at the shop of your choice, you walk. But you also would probably not be the one taking the car and driving it to be inspected, so it's a bit of a hassle. (Many dealerships will be much happier to give you the keys to do it yourself, since they can afford the risk.) For a car like you quoted, this is reasonable. It wouldn't really be reasonable for a $500 piece of shit, that's more of a take-it-or-leave-it deal. And again, for purchasing, cash is king, and cash equivalents are acceptable. Personal checks are not.

7. Probably. Also ebay motors.

FastStache

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Re: How to sell new car for old car
« Reply #2 on: December 04, 2014, 06:54:23 AM »
Thanks for the advice. I looked up some services online and there is a market for mechanics doing inspections on location which should make it easier to sell the seller on.

Just wanted to double check I need to get the title before I can sell the car, and once I have the title how do I get it over to the buyer?

LiseE

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Re: How to sell new car for old car
« Reply #3 on: December 04, 2014, 07:31:25 AM »
I'm sort of in the same boat ..

I went to a few dealerships to test drive a new car (one that the trade in of my current car will pay for in full) .. I did learn that when you trade in a car at the dealership you are only liable for the tax on the difference in price.  For me that would equate to a couple of hundred of dollars.

What is the tax implication if you sell a car on your own and then buy a used card on your own?  Do you charge tax when you sell and pay when you buy?  I'm not sure how that works.

neo von retorch

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Re: How to sell new car for old car
« Reply #4 on: December 04, 2014, 09:03:55 AM »
LiseE,

When you sell privately, you don't "charge sales tax" but when you get the title transferred, the agency will collect sales tax as part of the process. You will pay all regular sales tax when you purchase. So the only way to get a tax advantage is through a trade-in. If you trade in a $12000 car and buy a $6000 car, you will pay no sales tax, which is a savings of (depending on state) 6% on $6000 or $360.

FastStache,

To sell privately, you can go to any notary public. Some UPS stores offer this service, but there are plenty others, too.

I personally found the exact car I wanted being sold at a Mazda dealership that advertised being "the state's best CPO Mazda dealer" so I pushed hard for a solid trade-in price on my 2013 Mazda and then negotiated the price of the used car down as much as I could. And walked away with a $6000 check... :-)

FastStache

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Re: How to sell new car for old car
« Reply #5 on: December 06, 2014, 08:28:07 PM »
So, I pulled the trigger and am increasing my net worth by 6k. Got an odyssey with under 100k miles.  My new car had a scrape on it from that needed repainting, which prevented a higher trade in. No more car payment is exciting.

BooksAreNerdy

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Re: How to sell new car for old car
« Reply #6 on: December 07, 2014, 06:02:31 AM »
Congrats!!!