sell or trade?

Blaster Man wrote:

Executive wrote:
...You'll usually get more selling privately. That said, it's much easier to trade it...

True. Much harder to sell an RV than a car. You have a very limited group interested in buying, plus the higher price.

The '10 yr.' loan rule also made me want to sell our 2008 Monaco within that period of time (sold at 7.5 yrs. old). I felt we would get a better price for it if there were finance companies willing to loan on it.

MM.

Executive wrote:
The dealer offered me a ton of money for my trade in. He also wanted a ton of money for his coach. The ONLY REAL number is the DIFFERENCE between the two....Dennis

Polonius said "brevity is the soul of wit". You managed to say in one sentence what I said in a paragraph! :)

Executive wrote:
...You'll usually get more selling privately. That said, it's much easier to trade it...

True. Much harder to sell an RV than a car. You have a very limited group interested in buying, plus the higher price.

JFC wrote:
Come on guys, you're making assumptions without facts. As I said, I've done it many times and just verified the facts with the last contract. Why don't you call a CA dealer and ask about the law. I'd love some way to recover the taxes, especially the ones on the last coach purchased.

My apologies. Apparently in California, Hawaii, Kentucky, Maryland, Montana or Washington, D.C., this is the case. So, you pay the sales tax on the full price of the vehicle when you buy it, you don't get part of that back when you trade it in, and the person that buys your trade-in also pays sales tax.

Life in a blue state.

Strongly suggest consignment. Worked great for me.

The dealer offered me a ton of money for my trade in. He also wanted a ton of money for his coach. The ONLY REAL number is the DIFFERENCE between the two....Dennis

From the California board of equalization web site concerning taxes on cars and trades.

http://www.boe.ca.gov/sutax/faqpurch.htm#9

Are trade-ins taxable?

Yes. The value of a trade-in is considered taxable. For example, if you sold a car for $20,000 and accepted a trade-in valued at $4,000 as partial payment, tax would be based on the $20,000 selling price (that is, you would not deduct the value of the trade-in from the sales price of the car being sold when computing sales tax).

jplante4 wrote:
Ok, so when you bought the first of your "couple of dozen cars" in California, you paid sales tax. When you traded it, you paid sales tax on the purchase price of the new vehicle, not deducting the trade in value. That means you paid tax twice on the first vehicle.

Now, I haven't lived in CA for 40 years, but I have to believe that all the Californians that think this is OK have already moved to Oregon.

Bry - looks like a battle of wits with an unarmed man...

Come on guys, you're making assumptions without facts. As I said, I've done it many times and just verified the facts with the last contract. Why don't you call a CA dealer and ask about the law. I'd love some way to recover the taxes, especially the ones on the last coach purchased.

Ok, so when you bought the first of your "couple of dozen cars" in California, you paid sales tax. When you traded it, you paid sales tax on the purchase price of the new vehicle, not deducting the trade in value. That means you paid tax twice on the first vehicle.

Now, I haven't lived in CA for 40 years, but I have to believe that all the Californians that think this is OK have already moved to Oregon.

Bry - looks like a battle of wits with an unarmed man...

1BryNelson wrote:

JFC wrote:
I hate to do private sales, so my last two coaches have been trade in the old one. My negotiations are always just "how large a check do I need to write to get the new coach". I know how much I'm willing to pay so the dealer can structure the deal any way he wants as far as price and trade value as long as the difference is acceptable. In California sales tax is calculated on the purchase price and not the difference between sales price and trade, so a lower sales price with a lower trade is a selling point.

I really hate to argue but ignorance infuriates me. Sales tax in CA is calculated by the difference of selling price less trade-in. Period. Selling price has nothing to do with it; it's the difference that gets taxed. ....

Wow, I've only bought a couple of dozen cars (most with trades)and three coaches in California, the last two coaches with trades.In every case, the tax is calculated on the cash price of the purchase BEFORE deducting for the trade.I just went back and re-read the sales contract for my last coach and it's right there. I guess I've been over paying taxes for decades.