Author Topic: Selling a Car  (Read 2176 times)

tmterrill

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Selling a Car
« on: January 09, 2015, 01:06:11 PM »
I stupidly bought a 32k dollar car after graduation last May, I owe 14.9k on it with a 300 a month payment.

I am strongly considering selling it and getting a 15k car to replace it but I want to know the tax implications of this (sales tax, etc.).

Hurley82

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Re: Selling a Car
« Reply #1 on: January 09, 2015, 01:17:40 PM »
There are a lot of factors to consider:
Payoff
Value of Car  Trade in VS. Private sale.
Insurance rates
Tax savings trading in typically reduces sale tax on the purchase of the second vehicle.

Something to consider, if  your car is now only worth $20k and you turn around and spend $15k your savings are much smaller than if you purchased a much more affordable car. Your doing this to save money, why not go all the way and get the best car you can for as cheap as possible.

gimp

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Re: Selling a Car
« Reply #2 on: January 09, 2015, 01:20:43 PM »
Sales tax is paid when you buy the car, by the person who buys it, as far as I am aware. This will often be collected during registration.


tmterrill

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Re: Selling a Car
« Reply #3 on: January 09, 2015, 01:21:21 PM »
EBB says my car could currently get median of 30k at a dealer for trade in.

gimp

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Re: Selling a Car
« Reply #4 on: January 09, 2015, 01:46:20 PM »
Trade-ins are tricky. You would almost always be better off selling and buying separately. Especially because dealers will be unlikely to want to pay you money - they'd rather you trade in something cheap for something expensive.

With that said, call around, get an idea of what they might offer, both trade-in and not.

Also, if you bought a brand new $32k car in May, I have a hard time believing it would fetch $30k now, unless it happens to be in high demand. If you bought a used car for $32k in may, perhaps.

MustachianAccountant

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Re: Selling a Car
« Reply #5 on: January 09, 2015, 02:13:08 PM »
I've never used CarMax, but I've seen other forum members talk about them. You won't get as much as you would doing a private sale, but there's no hassle in selling your car either. I wouldn't go by the "trade in" value to gauge how much you can get for your car, however.

tmterrill

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Re: Selling a Car
« Reply #6 on: January 09, 2015, 02:29:29 PM »
The car is a 2013 which I got a pretty good deal on (comparatively anyway), that is why it is so close to the originally price, even for a trade-in.