chris_w

I swear I have heard this before--you want to buy a new car, but have a private party that wants to purchase your car. You somehow run it through the dealer so that you can reduce the taxable value of the new car purchase (to minimize sales tax), yet the old car is basically sold to the private party for your negotiated price, and maybe the dealer gets a small amount of money on the deal.

Has anyone heard of this, or am I making it up???

yield2s

NO, I HAVE PERSONALLY BOUGHT A USED CAR FROM A COUPLE WHO CYCLED IT THROUGH THE DEALER THEY WHERE BUYING THEIR NEW CAR FROM.IT ONLY IS BENIFICAL IN STATE THAT DONT MAKE YOU PAY MULTIPAL TIMES THE SALE TAX ON A CAR.(NOT CALIFORNIA!!!!!!!!) IT WORKS LIKE THIS, I NEGOTIATED A PRICE WITH THE PRIVATE PARTY SELLER, THEY PROPOSED THE DEALER THING, I AGREED,I DEALER HANDLES ALL THE PAPERWORK AND TECHNICALLY I BOUGHT THE CAR FROM THE DEALER.
THIS ALL HAPPENED IN OHIO IN 1996.
HOPE IT HELPS.

chris_w

In Texas, it is the new car value less trade-in equals taxable value, so that's why I think it would be beneficial.

So, how do you approach the dealer with this? I would think they wouldn't be thrilled because it's work for them.

yield2s

?????????i wasn't on that end of the table??????????

someone else?????

rockinTLS

Your timing is pretty good.

I am in the process of selling my TL-S to a private party to get an MDX.

Because of this thread I contacted my dealer to make an inquiry. Sure enough, no problem since I am a customer of theirs. They will charge their normal doc fee and registration charges and just pass the car through. The beauty is that they will take care of all the paperwork and I will save the taxes since the S will be handled as a trade. It saves me about $690 and helps the buyer with the paperwork. I would probably end up paying the doc fees and tags of about $250 but that still saves me money. The only downside for the buyer is that they have to pay the taxes on the car when they pick it up vs. when they register it. All else is equal.

Hey, thanks!

chris_w

cool, glad to be of help and now I feel more confident approaching the dealer with this idea. It will save me over $1600 in taxes and allow me to be more flexible in the selling price of my TL-S.

Chris

rockinTLS

Good luck with your sale. I found that the TL's are kinda hard to sell right now with a war and good financing on new cars in place.

I ended up doing a straight trade with the dealer. They gave me a good price for my car.

chris_w

Since I am downsizing to a Mazda 6 or Acura TSX, I don't expect a good trade in, and as far as selling it myself I can second your findings of a weak used car market. I am not in a hurry to sell, so will wait until the right buyer comes along.