Why is my trade in value so high?
I have a 2002 Flagstaff 228 popup that I bought in 2007 from the original owner for $4500.00. I was quoted in writing a trade in value of $5000.00 when I was looking.at used class c motorhomes at ...
Forum Discussion
JaxDad wrote:
Ummm, I'm not sure that's correct at all.
If they raise the trade-in by $3,000 and raise the sale price by the same $3,000 to offset it, the net amount of the sale (purchase minus trade in) is the same, so the taxes would be the same also.
Exactly. Taxes can be a reasonable consideration when comparing private sale to trade-in (the taxes saved off-setting, slightly, the difference between the trade value and the private sale value). In the case of a dealer, however, if a higher trade simply means a higher purchase price (as it would in most cases), the net taxable amount to you will be the same.
