My dealer really wants me to pre trade my 996 now, I have a June allocation/ July build 997TT. The advantage would be a little less depreciation if I trade it now, the disadvantage is being Porscheless for almost a year!!
For some background my 996 is a2000 C2, 36K, lots of nice upgrades. Including RoW 030, GT3 Sport Designs, OEM SSK, third radiator, exhaust...no leaks, no wrecks ever. A very solid enthusiast owned 996.
I don't want he hassle of selling it myself so I prefer to trade it. Should I pre- trade and go Porscheless??

 

Depending on which state you live in this might cost you in taxes.
It might be tough in some states that give you a tax credit from the sales price for the transaction to roll over to the next year. As long as the dealer is willing to cover the potential loss in tax savings ( get it in writing) I don't see a problem with doing this.

 

I see a problem-

being Porscheless-

Unless you have another sports car...?

 

July build=August delivery............. that's a long time to go without a Porsche. The dealer would really need to make it worthwhile for me to do it.

good luck

 

Don't take the dealer's word for the legal time-frame....check with your DMV regarding required turnaround time in order to credit the trade-in to offset taxes on the new car.

In some states you can take up to 1 year (e.g. if the title transferred into the dealer's name on November 1, 2006 you could take delivery of the new TT anytime before October 31, 2007 and receive trade-in credit re:taxes).

Also depends on how sweet the deal is.... it goes without saying that the C2 title should be signed over to the dealer alongside a written commitment specifying @ % discount off MSRP for the Turbo signed by the Sales Mgr.

Kelly Blue Book would say around $30K trade-in (not counting the value of GT3 wheels + the RoW suspension). IMO you could probably sell a sweet C2 like that listing it yourself using Autotrader in about 2 weeks' time if you priced it at $35K. Factoring the $2500 tax benefit of trade-in-- assuming 8% sales tax-- I would only trade-in if dealer is offering at least $32.5K now.

*Dealer (or you) also stands to earn ~ $1500 in interest over the next 11 months if the C2 sells right away to its next owner.... another reason the dealer favors pre-trade as early as poss.

 

Can we see the current C2? Sounds interesting...

 

DJ,

I can't help but think, the only advantage to a pretrade is to give the dealership another vehicle to make money on until you get your 997TT.

Maybe I am wrong here but I think most of the depreciation that happens to Pcars comes from miles, not years. I would assume a 996TT with less than a 1000 miles or so would still fetch massive numbers from a dealer like RPM Sportscars, etc.

My point is, what ever trade in value the dealership is giving you, (I am guessing a few thousand below KBB) is in their favor to begin with. If I were you, despite your desire to not hassle with private sales, I would list the car on Autotrader at private party value and see if you get any bites. You might be talking about a difference of thousands and thousands of dollars.

Now here in California, there is no tax exemption to trading in a car so it rarely makes sense to trade in. But I have also noticed that Pcars often have a lower blue book value than what these cars sell for on the street. Yes, my experience comes from a 993 so I understand there will be differences for the 996 world but some things are probably true.

At the very least, you might want to investigate what 2000 996 cars are selling for in the premium market and private market.

Good Luck,
B

 

I agree... autotrader the car at KBB price (higher than the dealer would offer). If no-one is interested then sell to the dealer next year.

 

I'm inclined to wait and trade it later, unless they offer me a good number. I'll have to check out the tax credit this far in advance. They will have a chance to look at it this month when I take it in for the yearly service.
If anybody is interested pm your email address and I'll send pics, the 6speedonline database is not letting me upload the images.

 

Tough choice!! But let me ask you, what are the spec's on your 997tt? There are LOTS of 997TT's going around in all different types of variations for amazing prices, i wouldnt wait!

 

My 997TT is Meteor Grey/ Cocoa, 6 speed, LSD, Sport Chrono, adaptive seats, crests, fire ext., and door finishers.

 

Ahh, that explains it