VanillaEps Posted December 7, 2006 Share Posted December 7, 2006 I am trading in a vehicle that has been paid off. I've negotiated the selling price on Spec B. The next step is to negotiate a competitive value on the trade in. I don't want to place the entire value of the trade in vehicle on the Spec B. I can use the difference to earn interest, pay off some revolving acounts, x-mas money, rainy day fund, etc. Besides, the difference in payment between placing the full trade in value and partial trade in value is negligible. The trade in value of the vehicle is approximately 15k. I'd like to place 5k on the new vehicle and keep 10k in the bank. Will most dealers write me a check or will they stray away from that kind of deal? Has anyone done this type of deal? If not, I need to start formulating a contingency plan, such as Carmax or private party sale. Link to comment Share on other sites More sharing options...
rao Posted December 7, 2006 Share Posted December 7, 2006 They will write you a check. Rob IF YOU CARE ABOUT YOUR CAR YOU SHOULD NEVER DRIVE IT Link to comment Share on other sites More sharing options...
VanillaEps Posted December 7, 2006 Author Share Posted December 7, 2006 They will write you a check. Ok. I wanted to discuss the plan with the Sales Manager, but I didn't want to sound like a complete tool. Link to comment Share on other sites More sharing options...
Guest Posted December 7, 2006 Share Posted December 7, 2006 Remeber about sales tax. If you trade in, the purchase price is lowered by the trade in value and you pay sales on tax on top of the difference. Link to comment Share on other sites More sharing options...
VanillaEps Posted December 7, 2006 Author Share Posted December 7, 2006 Remeber about sales tax. If you trade in, the purchase price is lowered by the trade in value and you pay sales on tax on top of the difference. Since I am asking for 10k back, which would be the scenario? (Selling price - 5K) + Tax(Selling price + Tax) - 5K Link to comment Share on other sites More sharing options...
Guest Posted December 7, 2006 Share Posted December 7, 2006 1st Link to comment Share on other sites More sharing options...
VanillaEps Posted December 7, 2006 Author Share Posted December 7, 2006 They will write you a check. Have you done this or known someone that has? Link to comment Share on other sites More sharing options...
warrior325 Posted December 7, 2006 Share Posted December 7, 2006 Oh really? I'm in a similar scenario... will be getting about 14-15k for my trade-in and I plan on throwing it all on a down payment. Does that mean ill only be paying sales tax on lets say $33,000 for new spec B, - $15,000... So i'll only be paying tax on $18,000 ? Remeber about sales tax. If you trade in, the purchase price is lowered by the trade in value and you pay sales on tax on top of the difference. Link to comment Share on other sites More sharing options...
VanillaEps Posted December 7, 2006 Author Share Posted December 7, 2006 Oh really? I'm in a similar scenario... will be getting about 14-15k for my trade-in and I plan on throwing it all on a down payment. Does that mean ill only be paying sales tax on lets say $33,000 for new spec B, - $15,000... So i'll only be paying tax on $18,000 ? Yes, that I do know. Link to comment Share on other sites More sharing options...
941LE Posted December 8, 2006 Share Posted December 8, 2006 Tax laws vary by state but to my knowledge all states will charge tax only on the trade difference (selling price - trade value = trade difference) since they will be getting their money when the "trade" is re-sold by the dealer anyway. P.S. I work at a Dealership and we have sold cars and sent the customer home with $. Yesterday an older gal traded 2006 Cadillac DTS because it was too big for a 2006 Chevy Malibu and she walked with the difference. Depending on what rebates/dealer cash/bonus bucks programs are running...certain ones can be given directly to the customer rather than applied towards the purchase so they can finance the entire amount and walk with $. This can be a good closing technique used by finance managers, here is $2,000 to payoff that credit card at 22%...only increases your car payment by $40/month...oh and by the way there is this GAAP coverage since now you'll be upside down...blah blah blah. Link to comment Share on other sites More sharing options...
VanillaEps Posted December 8, 2006 Author Share Posted December 8, 2006 Tax laws vary by state but to my knowledge all states will charge tax only on the trade difference (selling price - trade value = trade difference) since they will be getting their money when the "trade" is re-sold by the dealer anyway. P.S. I work at a Dealership and we have sold cars and sent the customer home with $. Yesterday an older gal traded 2006 Cadillac DTS because it was too big for a 2006 Chevy Malibu and she walked with the difference. Depending on what rebates/dealer cash/bonus bucks programs are running...certain ones can be given directly to the customer rather than applied towards the purchase so they can finance the entire amount and walk with $. This can be a good closing technique used by finance managers, here is $2,000 to payoff that credit card at 22%...only increases your car payment by $40/month...oh and by the way there is this GAAP coverage since now you'll be upside down...blah blah blah. That's good to hear. I figured they would be able to do that. Link to comment Share on other sites More sharing options...
Guest Posted December 8, 2006 Share Posted December 8, 2006 Btw, VanillaEps...congrats on your purchase, and thumbs up for your lady for appreciating the Subie. Link to comment Share on other sites More sharing options...
VanillaEps Posted December 8, 2006 Author Share Posted December 8, 2006 Btw, VanillaEps...congrats on your purchase, and thumbs up for your lady for appreciating the Subie. Thanks! As soon as the payoff on my current vehicle clears, I'll go to the dealer, trade in my vehicle, sign the papers, and take home Spec B #449. Link to comment Share on other sites More sharing options...
AlterZgo Posted December 9, 2006 Share Posted December 9, 2006 Tax laws vary by state but to my knowledge all states will charge tax only on the trade difference (selling price - trade value = trade difference) since they will be getting their money when the "trade" is re-sold by the dealer anyway. This is definitely not true in California. Here, you pay the sales tax on the full price of the car regardless of how much your trade-in is. Your trade-in could be worth more than the price of the brand new car and you would still get hit with anywhere from about 7.5% to 8.75% sales tax depending on where you live in California. Link to comment Share on other sites More sharing options...
2006Specb122 Posted December 13, 2006 Share Posted December 13, 2006 Thanks! As soon as the payoff on my current vehicle clears, I'll go to the dealer, trade in my vehicle, sign the papers, and take home Spec B #449. Congrats on picking up one of the last limited edition spec bs on the planet. ENJOY! Link to comment Share on other sites More sharing options...
VanillaEps Posted December 13, 2006 Author Share Posted December 13, 2006 Update: Dealer is willing to give me the Subaru Trade in Program value and write me a check. Win/win situation. My trade in value per Subaru is 17k. I'll place 7k on the Spec B and go home with a Spec B and 10k check. Link to comment Share on other sites More sharing options...
RobE Posted December 13, 2006 Share Posted December 13, 2006 thats a pretty sweet deal. is the spec b new or used? and how much are you paying? (if you don't mind me asking) http://newenglandsubarus.com/ Link to comment Share on other sites More sharing options...
VanillaEps Posted December 14, 2006 Author Share Posted December 14, 2006 thats a pretty sweet deal. is the spec b new or used? and how much are you paying? (if you don't mind me asking) New Spec B. It's got 20 miles on it. I'm paying 31k OTD - 7k trade in = 24k. Link to comment Share on other sites More sharing options...
RobE Posted December 14, 2006 Share Posted December 14, 2006 that is a pretty good price, for this early in the model year, but still almost $6k more than i paid for my car on 11/11/05 http://newenglandsubarus.com/ Link to comment Share on other sites More sharing options...
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