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In many cases like this, donating the charity might be a better deal. The deduction you would get on a car valued at $4500 would be far more than $200.
It's common knowledge that trade-ins are for convenience for the consumer, not for making $$ on the departure of your old vehicle.
In this example that would be true. In cases where a low mile, late model is traded in the dealer will likely make more money on that than the new car.
It's difficult to say that they rip you off, because as the seller of your vehicle you have the option to walk away. However, in the heat of the moment and knowing you are one step away from that shiny new car, most don't rationalize the numbers they give you and take the trade. You need to be able to keep a level head and do the math.
Often times they will present you with a trade in offer well below wholesale value. So anything less than wholesale pricing is profit for them. The profit nearly doubles if they can sell it on their own lot. 9 times out of 10, you don't get one red cent for your car and in the shell game can sometimes pay more for the new car to consume "negative equity" in the vehicle. That amount is also profit.
Next time, do not mention a trade in up front. Work the deal and at the last minute once you have agreed on a price tell them that you have a trade. You will likely see the salesperson get upset because he has shown a hand you would never see if he knew you had a trade in.
In many cases like this, donating the charity might be a better deal. The deduction you would get on a car valued at $4500 would be far more than $200.
As I was looking into how to get rid of my current 24 y.o. car in prep of buying a new one, I found out that you get to deduct the actual sale price that the charity sold the vehicle for.
So for example, your car is valued at $4500 when you donated it. The charity sent it off to auction and received $500. You'll get a receipt that allows you to claim the $500 for tax deduction. So, if you pay about 28% in income tax, your tax savings is $140. Financially, you come out ahead selling the car on your own, but then there's all the hassle that comes with it.
It's common knowledge that trade-ins are for convenience for the consumer, not for making $$ on the departure of your old vehicle.
Actually if the trade in is a nice car it will go on the lot. If it's a pile it's gonna get a sealed bid auction from various other dealers that may want the car. They will make money even on that pos MB
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Originally Posted by MNTroy
Really? That easy?
Absolutely. The Craigslist cockroaches will eat that up. However make sure that it's reregistered that say otherwise you might end up with a surprise call from a tow yard a few months later to come get your car.
In August 86 I paid $300 for a 74 Pinto wagon. In December 86 I got a $200 trade in on it towards a 87 F150 at the Ford dealer. I'd say I got a good trade in.
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