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Hands down, the worst car-shopping advice ever given.
Baloney. As soon as you tell them you have a trade, the used car manager is going to "lowball" your car to make up for the profit that the dealership is losing by lowering the price on your new vehicle.
Then if he said 8.25%, he is lying. Vehicle sales tax in Texas is 6.25%.
Your tax savings would be $812.50.
In Texas, you don't pay the taxes yourself when you go through a dealer. The dealer does it all for you and the plates get mailed to the dealer.
You have to ask yourself if making an additional $187.50 on the car is worth the hassle of selling it yourself. It's going to be a big headache because you have a lien on the vehicle, so you will personally have to make sure it's cleared off and take care of all that.
If you trade it in, they do it all for you.
Personally, I would happily take $187 less for someone else to do all the tax and registration work and take care of paying off the old car, etc.
But do it somewhere else, where the guy isn't lying to you.
Its was a quick post and I gave the general sales tax by mistake;not a lie at all.But still the general idea that you don'tpay sales tax on amount of trade gave him genral infornatio he wanted. In my opinon 187 dollars for the time it takes to sign traferr papers at couty and paying off is worth it. dealers hold the title don't tranfer until sold and your trusting the dealer to payoff the loan which has been in the news of late since dealers are failing.
In this particular case I think the OP might be just as well off trading it in. USUALLY, however, the price you will get from the dealer is much lower than the price you'd get selling it yourself. $1,000 difference on a $14,000 car is pretty good, actually.
Having posted another thread here on the Automotive forum about how much trouble I had trying to sell a car on Craigslist in the $15k range, I'd vote for trading it in.
As far as the economics of new car versus keeping the old car, which isn't paid off yet - no, the OP isn't being frugal or particularly dollar-wise. On the other hand, these are the things you get to go through in life to develop that all-important perspective. I watched my son goes through this in his teens/early 20s and, after offering the first bit of advice, had to shut up and let him learn for himself the value of his hard-earned dollar. Plus, as much as a car is intrinsically a chunk of steel, aluminum, plastic and 40 miles of wiring, extrinsically it has an individual value.
Car lot was going to give me 13k. I sold it today for 13.5k
I had it for sale at 15.5k and took a loss but only had it on the market for a week. An 18 yr old bought it and my car has over 400rwhp. I hope he respects the power. But it's gone and its time to save up for my next car, C6.
Baloney. As soon as you tell them you have a trade, the used car manager is going to "lowball" your car to make up for the profit that the dealership is losing by lowering the price on your new vehicle.
Not even close. I've detailed numerous times on here why it is awful advice.
New cars don't make a profit until you get into high-end cars. And the used car manager certainly isn't concerned about the new car department's finances.
On the other hand, not telling the salesperson you have a trade-in is a great way to ensure that you won't even get to the trade-in point. I can't begin to tell you how many deals were saved because we couldn't get to a price point the client was comfortable with, but we could make it up in their trade. Which would have never happened if I hadn't known about it.
The used car manager isn't going to "lowball" your trade. He's going to give you less than the retail price because he is in business to make money.
When we went down to buy our new Jeep we had a 2003 Jeep GC, the 2003 had 80K on it and the resale value was 7500.00. The salesman ask if we were going to trade it in, I said that all depends on how much you'll give us for the Jeep. He said he'd give us 2000.00, I looked at him and said "You got to be f***** crazy" he said "Well how much do you want for it, I said 7500.00 take it or leave it. We were trading this in on a 2011 Jeep Liberty which listed for 28K. After all was said and done, not only did we get 7500 for our Jeep but we also got 2500 in dealer incentives. So the our credit union carried the contract of 18K.
When we went down to buy our new Jeep we had a 2003 Jeep GC, the 2003 had 80K on it and the resale value was 7500.00. The salesman ask if we were going to trade it in, I said that all depends on how much you'll give us for the Jeep. He said he'd give us 2000.00, I looked at him and said "You got to be f***** crazy" he said "Well how much do you want for it, I said 7500.00 take it or leave it. We were trading this in on a 2011 Jeep Liberty which listed for 28K. After all was said and done, not only did we get 7500 for our Jeep but we also got 2500 in dealer incentives. So the our credit union carried the contract of 18K.
So they charged you sticker and used some of the money for the trade.
When I traded my car in the dealer offered me $6700.. I took the car across the street to carmax for a second opinion and got it appraised for $9000 took the appraisal back over to the dealer and got the $9000 for the car!
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