{Warning!!! Long winded rant}

Sooo.. I go to the dealership with full intention of driving away in my new '11 Kona GT with 3.73's that they ordered for me with no $$ down and said I had no obligation. It is still sitting in the same place at the dealership with the sold sticker and the same # of miles.

I lined up a buyer for my car that I work with who was OK going through the dealership (she felt better about it that way even though she would pay tax), had my X-Plan pin, $750 coupon, Pay off $ amount, and a final ball park number number figured out that I was happy with. Only problem was she is on vacation until the 19th and not present. Didn't even mention hold back $$$.

It came down to the $ amount for my '08 that the buyer agreed to + tax. They offered me $1500 less for the "trade" and said I would make it up in tax savings. They said the other day that my number "was no problem" but now they don't want to get "stuck " with a car they paid too much for according to the little black book. I told them I saw CPO cars several K more than their offer.

The only reason I went to the dealership today was to save the tax $ so that was no option. The money that I would save didn't cost them a dime and I wasted 3 hours of my time. I set up a buyer for my car and I came back to buy the car. If I didn't want to stick it to the Gov't, I could have waited, sold it privately then come with cash in hand. What else do they want..my shirt too???

I feel better now.

 

So they won't deal? Find a new dealer. Pit them against each other; it got me another $500 off plus about $400 in extras at no charge.

 

I know this is going to suck for her, but don't forget that you'll be losing money by selling to her instead of trading it in to the dealership.

Here in Texas, at least, you only pay taxes on the difference between your new car price and your trade in.

So, let's use these numbers (for easy of calculation).

2011 costs $40k. Your 2008 is worth $20k.

If you trade it in, you'll pay (40-20) * tax rate (.0825?) = $1,650 in taxes

If you sell it privately, you'll pay (40 - 0) * tax rate (.0825?) = $3,300 in taxes.

So in essence, by selling your car to her, you'll be out $1,650.

 

whoops, just saw the update. nvm me.

 

dumb question but say if you put money down is tax calculated on the ammount before or after down payment?

 

I'm shopping for a 2011 and several dealers have agreed to do a courtesy trade for me - no "less $1500".

 

Just curious, what type of trade-in offer were they giving you? I'm wondering how my '06 do in trade-in...

 

I worked out a deal with a co worker. Essentially, I made the sale for them but the transaction would go through the dealer for the price me and the buyer agreed upon. Zero in, zero out.

The dealership basically said they would not take the trade value that we agreed upon since they were worried she would get cold feet. And the little blue book said it was verging on a "retail" transaction which is why they wanted to drop the trade $1500.

A valid point but this is a person who tracked me down, asked if I would sell and drooled on my window on a daily basis. She is going to pay cash too. Little to no chance of her backing out. She already has winter storage space set aside.

The tax issue just is a way to get back at the state for being so corrupt and ripping them off in a legal manner. And it would save me $1300 in tax to trade it as opposed to a private sale then buying the new car.

 

If you put money down, tax is calculated before on the full value.

You have already been taxed on the car for trade when you bought it. If you trade the tax is calculated on the difference after the trade.

 

I see that you're in Illinois- Chicago area? Curious which dealer you were working with.

Love the description of the 82, sounds awesome!!

 

Exactly why I wanted to "trade" it and have her go through the dealership since she still has to pay tax on the purchase price to title/register the car even with a private sale.

She was fine with the fact and that it would save me $1300 tax.

Like I told the dealer, it wouldn't cost them a dime.

 

Well, I'm not going to run anyone over with the bus yet. My dealing is with the finance manager, not the owner.

The owner, who graduated from the same small high school as me, is on vacation.

 

This whole thing is about principle.

They ordered a car that I didn't put money on. Since they ordered it, I'll buy it as long as I sell my '08 which is done. There is a difference between need and want.

The dealership said they would do a courtesy trade at the price the buyer and I agreed to. And now won't.

They said that "to only lose $5k of sticker price on a two year old car with 21K miles is a pretty darn good deal" No S---! (FWIW, it's a lot less then that!!! see below)

Don't hate me because I'm not a sucker and do my homework.

See now I'm getting fired up again.

 

Always do the math and hold him to his promises