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If you sell to a dealership that will sell the car themselves, you have some wiggle room on the trade-in price because you're cutting out 2 middlemen (wholesale

If you sell to a dealership that will sell the car themselves, you have some wiggle room on the trade-in price because you're cutting out 2 middlemen (wholesaler and auction). Also, don't forget the tax benefit you get by the lower price of the care you're buying. Not sure if this is new cars only but that offset can be thousands, depending on the trade-in value and new car cost.

deleted 13y ago
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larrys 13y ago
Tax benefit (in most states afaik) has nothing to do with whether the purchase is a new or used car. To explain (for anyone not familiar since the way you phrased it might be confusing): New car price: $30,000 Your trade in: $10,000 Net price: $20,000 So Sales tax 6%20,000 vs. 6% 30,000 (example of a state with 6% st) If you sell the car yourself you can still use it as a trade in if you can coordinate with the dealer and your buyer and do what is known as a courtesy trade. But you have to get the buyer to show up and take your used car when the dealer delivers your new car. The dealer does the paperwork and usually charges a few hundred dollars or less for handling the sale. It is well worth the trouble if you can get the cooperation from the buyer.
- joshcanhelp 13y ago
  Thanks for the clarification ... and the information on the courtesy trade, I've never heard of that before.
ValG 13y ago
Josh, The average dealership doesn't know if they're going to keep a car for their own inventory or going to sell it at auction/wholesale until they own it. Standard procedure is to purchase a car (purchase = take it on trade-in/buy it) and then have the mechanics inspect it to see what it needs done on it to get it back out to sell. If it's too expensive, they wholesale/auction it. This means, 90% of the time, they default to offering you the lowest value.
- joshcanhelp 13y ago
  That makes sense. I sold mine to a VW dealership that does a lot of used cars sales. It was in great condition so I was pretty certain they would sell it. I as given a good trade-in number so I took it.

deleted 13y ago

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larrys 13y ago

Tax benefit (in most states afaik) has nothing to do with whether the purchase is a new or used car. To explain (for anyone not familiar since the way you phrased it might be confusing): New car price: $30,000 Your trade in: $10,000 Net price: $20,000 So Sales tax 6%20,000 vs. 6% 30,000 (example of a state with 6% st) If you sell the car yourself you can still use it as a trade in if you can coordinate with the dealer and your buyer and do what is known as a courtesy trade. But you have to get the buyer to show up and take your used car when the dealer delivers your new car. The dealer does the paperwork and usually charges a few hundred dollars or less for handling the sale. It is well worth the trouble if you can get the cooperation from the buyer.

joshcanhelp 13y ago
Thanks for the clarification ... and the information on the courtesy trade, I've never heard of that before.

ValG 13y ago

Josh, The average dealership doesn't know if they're going to keep a car for their own inventory or going to sell it at auction/wholesale until they own it. Standard procedure is to purchase a car (purchase = take it on trade-in/buy it) and then have the mechanics inspect it to see what it needs done on it to get it back out to sell. If it's too expensive, they wholesale/auction it. This means, 90% of the time, they default to offering you the lowest value.

joshcanhelp 13y ago
That makes sense. I sold mine to a VW dealership that does a lot of used cars sales. It was in great condition so I was pretty certain they would sell it. I as given a good trade-in number so I took it.