sell or trade?

Sale tax in Indiana is the same way. You buy a $100K unit and trade in a $40K unit, you pay sales tax on $60K. When trading cars my family tries to find a private buyer for the car, then goes to the dealer and says allow me X (what car is selling to priviate buyer for) and this guy will buy it for that "as is". Dealer often charges $100 or 200 for paperwork and we save the sales tax differance.. Private buyer would pay same sales tax anyway, so it is not an extra cost for them. It is all in how the deal is structured, but it can be a lot of money.

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. ....

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.

Oh and I guess maybe your talking the depreciation that any motor chassis goes thru. Can still beat that if I don't want yo keep it. But if you keep it you own some depreciation, yes.

RedJeep wrote:

1BryNelson wrote:
Sell high; buy low. Time honored philosophy.

With RVs it is buy high and sell low.

Wow do I totally disagree with that statement. A dealer buys a unit or accepts a trade-in with the anticipation of refurbishing and selling at a profit. Why not sell for retail less refurbishing; or do the rehab and sell for top dollar. And I bought my unit for the dealership; part of my retirement was I got a Class A at what I bought it for plus $100. And believe me I paid much less than market to someone that just wanted to unload it.

Depends on whether you want the most convenience or the most profit.

1BryNelson wrote:
Sell high; buy low. Time honored philosophy.

With RVs it is buy high and sell low.

When you "trade in" there are actually 2 seperate transactions taking place: 1) your trade in, they are buying to resell. Your selling low. 2) Your buying their unit at retail without truely knowing what they are paying for yours and what you are paying for theirs. Buying high. So if your going to "wholesale" your unit, then shop it around to dealers. Otherwise retail it, sell high.
I use to sell and buy cars for a dealership, same thing for moho's.

One thing to remember is that in most states you pay sales tax on the difference you pay. That could make a difference.

You'll usually get more selling privately. That said, it's much easier to trade it. You'll have to negotiate either way and you'll have looky loos calling you, trying to scam you, all kinds of nefarious stuff if you're selling it yourself. Another consideration is to sell on consignment....Dennis