Beltfed

Curious to see if anyone knows the answer to this one. Let's say I'm selling a car to dealership A. Later in the month, I'll be getting a new car from dealership B. What I would like to know is, am I entitled to the sales tax deduction (savings) on the new car? Even though I didn't actually trade in the vehicle to the dealer I'm getting the new car from?

I would think so, I'm guessing by just bringing in some paperwork from dealership A stating that the car was taken in at XYZ value.

Any ideas? Muchos grassyass.

bl^5

Good try, but NO! It has to be a trade in at the time of purchase from the same dealer as the purchase.

It has to do with the amount of taxes the dealer has to pay to the state. I understand it in my mind but it is hard for me to explain...

6SPD

You could do what's known as a "pass through." You trade your current vehicle to dealer B --but only on paper.

Dealer A actually has possession of the vehicle (or picks it up as soon as you sign your paperwork) & issues a sight draft for the unit to dealer B so it is never really in their inventory.

You will likely have to pay a fee to dealer B for doing the transaction this way, but it could pay off in your tax savings.

It's a pretty common practice, and you just have to communicate with both dealers & get them both on the same page.

G

Almost true, don't let dealer B charge you-that is BS.

For example, it is like trading in a Jaguar to truck store. More than likely, they are not going to keep it in there inventory to try to sell, so they get bids from other dealerships. When the transaction is done, the other dealership comes and picks up the car and pays the truck store for the car.

Beltfed

Hmm, interesting..........I'm not sure dealer A will be thrilled about the idea as he's more or less taking the vehicle which he doesn't really need at the moment.

But decided to take a chance on it. Don't think he's going to want to make things complicated.

So with that, I could always inquire with him about the situation. Bu not holding my breath of anything significant to come of it.

G

Shouldn't complicate things at all. Just get a buy bid from him, take it to the second dealer, and that is all you need. He still buys the car.

Edit-What are you getting rid of and what are you getting?

Beltfed

Actually it kind of does, I went to dealer B and they are going to wholesale the vehicle out. So they aren't going to take the rig in at the kindness of their heart, they are going to take a piece of the pie.

Basically, I went straight to dealer A and got $5k more on the trade offer.

Hence the situation.

Basically, trading in a Range Rover (dealer A)......trying to get tax savings at Jeep (dealer B).

Anyway no the RR is not being traded for a Jeep. Another vehicle is being bought in place of the RR. But is being leased, not purchased so tax savings would not apply.

GreenMonster

Beltfed, call your insurance agent. They should know... The dealers might, or (eek) I guess you could call up the NY dept of revenue (motor vehicle sale/use tax).

In some states (I don't know if NY is one) you can even get a sales tax credit for a car you sell privately... I looked on the MA RMV and MA DOR sites, and it appears that MA doesn't allow for this anymore. I know that at one time you could sell a car privately and as long as you filled out the right paperwork (with the buyer) and bought another car from a dealer within 30 days or so, you could get a rebate on the sales tax.

Never hurts to ask....

Beltfed

Appreciate the feedback..........but as suspected this can be done.

I should have known to begin with as I did something similar with my Mcoupe.

Basically, the vehicle can be traded to Jeep (put through their books). The owner said he would charge me $500 (that's the usual standard) to handle the transaction. The used car manager at Land Rover has no problem making the check out to Jeep. So basically, LR is buying the vehicle from Jeep.

bl^5

Thank you folks, I had no idea this could be done. INTERESTING!

bl^5

So are you getting the new 4 door Wrangler?

I think I'm in love with those...

Beltfed

GC SRT-8.....should be in soon.

The 4dr Wrangler looks cool though.