To buy or not to buy...that is the question!
#16
02-23-2010 | 11:58 PM
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Right. You just get hammered when you do a trade in. It simplifies things maybe, but you pay dearly for the convenience. I hate having to deal with selling a car, but when the deal is over, I am always VERY glad I did it rather than trade. Especially if you are considering a trade, you can afford to sell at a price that will move the car quickly and still come out better. Although, you have to calc the break even point and consider taxes - if you trade, at least in GA and some states, you only pay tax on the difference above the trade value. If you sell, then buy, you pay tax on the whole thing. That said, selling has always been better for me.
In California you pay taxes on the entire purchase price, not just the delta, so trade or buy is no different tax wise. Also like yrralis1 mentioned, I think even if I sold it privately I may only get about $40-45 in this market so basically this dealer is offering me $38K on trade and $58 for their car so the delta is $20K plus taxes=$25k. I thought this was pretty fair but seems like the consensus is this is a bad deal. If I look at similar '06S Cabs which have higher mileage they range for CPO cars from $60-65K so it looked like this was in the ball park. However, I respect the opinions of everyone who posted and am now really thinking otherwise. I suppose if I was able to get $45K for mine and they dropped their price I could get the delta down to $15K plus taxes but that would be pretty optomistic based on similar cars currently listed.
Last edited by jabed92694; 02-24-2010 at 12:07 AM.
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