Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Sell it. Even if I were in need of a new vehicle at the time. I can buy a nicer vehicle than I've ever owned for $10K, so it seems foolish to not cash it in and spend the difference on something else, or save it.
My question is, could you just pass the CFO on to the buyer, or would you be required to register it first? In my state that would mean paying $2K up front in sales tax (assuming a $40K MSRP), plus several hundred for registration (most of which would be refunded after selling the vehicle and turning in the playtes) and a nominal title transfer fee.
I am not surprised that on the frugal living forum, the "sell it and pocket the cash" option is winning by a big margin - a big new thirsty SUV is not a frugal vehicle.
But, yeah, if I won any new car - I would sell it, not drive it - I don't like the new models, and rather than take the depreciation hit, I would raffle it off to someone else, let them take that hit.
I would definitely sell it. I don't like big cars anyway. I would hold onto the money until I found out what I owed in taxes. After paying the taxes on it, I might buy a new (new to me) car...but I would probably just put it in my car fund, since I'm determined to hang onto my Subaru forever!
For the sake of discussion, let's say it's a $40,000 vehicle.
Sell it, sock back roughly $10,000 for taxes, and keep the other $30,000.
Good luck with that. Unless your going to sell the car in your dealership, it's highly unlikely you'll get the full list price for the car. I say the best you could do is sell it for 35k, pay 10k in taxes for winning the car and then pay taxes on the 35k car you just sold. You be lucky to walk away with 20k.
I will keep the new SUV and give it to my parents as a gift. 20 years of putting up with my shenanigans are probably a good equivalent of 40 grand haha.
Good luck with that. Unless your going to sell the car in your dealership, it's highly unlikely you'll get the full list price for the car. I say the best you could do is sell it for 35k, pay 10k in taxes for winning the car and then pay taxes on the 35k car you just sold.
The $35K you'd sell it for wouldn't be considered income, it's just an asset conversion. Since you're selling it at a loss there would be no tax liability. In fact a good accountant would claim the $5k loss for you.
Plus $10K is a pretty high estimate for taxes. That's 25%; I don't think many people with a high enough income to have a marginal tax rate of 25% are screwing with entering contest to win SUVs. $5K would be more than enough to set aside for most folks.
Sell it, pay the taxes, then buy another rent house.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
