re: Trading in a car

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What happens with sales taxes if you trade in a car that you still owe on? For example if the dealer gives you $10k and you still owe $5k, do you get sales tax credit for the 10k or the 5k in equity you have in the trade in?

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I think it’s the 5k in Louisiana. I’ve done so many of these I should know.

My only advice when figuring out what your current vehicle is worth is take emotion out of the equation.

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Negoiate the car you want to buy without admitting a trade in. Then when you have a deal in place, say you want to trade in your vehicle. It will piss them off cause they were going to work in the trade in as part of the deal. Now they are stuck.

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It is all so exhausting.

Know what you are willing to accept, and accept no less.

I was always in the “sell it yourself” camp, and it often yields the best results, but the last two vehicles we purchased, the trade-in offer was solid and saved us from having to deal with the bullshiat of selling it.

Entertain the trade, but be prepared to just walk away.

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Any tips to getting most out of a trade-in (older car) at dealer or don't bother and try to sell myself?

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if you dont trade in then you will pay the sales tax on the entire amount of the vehicle you are buying. This can be quite significant. Otherwise you pay the Sales tax on the net difference.

What I have done in the past is negotiate the cash sale price of the vehicle to the lowest I can get and then offer the trade in. It is all about the net cost to you in the purchase. They can give you a large offer for your trade in and keep the price high on the purchase vehicle or vice versa. Doesnt matter - net price to you.

and for God's sake dont ever get into a "how much are you willing to pay per month" discussion. At that point they are just figuring out how to get all of it.

Schedule an appraisal for sale at Carmax, ask for the print of the offer, and take that to the dealer, the dealer will match. If the dealer does not match tell them you don't mind driving further to find one who will.

givemethevin.com

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10k credit on taxes

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Friend of mine setup an LLC in Montana for the express purpose of avoiding sales taxes on vehicles. No sales tax, no inspection. All DMV transactions done by mail. Pretty wild watching him roll up in a vehicle with Montana tags.

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Friend of mine setup an LLC in Montana for the express purpose of avoiding sales taxes on vehicles

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Buddy of mine bought a plot of land in Arkansas, got a mailbox, and now he's an Arky citizen living in BR. Gets cheaper vehicle registration and WAY cheaper vehicle insurance. Thumbs his nose at inspection sticker cops.

Lol all these answers are wrong.

It's simple: hit KBB and put in all your car info including photos.

They will give you it's worth which is thousands more than CarMax.

In less than a day your phone will be ringing off the hook and you will be getting text messages from dealers all over town agreeing to buy it at the KBB price.

Go to any dealer; have them look it over then say you're leaving and they'll throw one more offer over KBB at you.

I was offered 13k for my 2012 F150 at CarMax and sold it to the local Nissan dealer a few days later for 19k.

My wife was offered 21k for her gl350 at CarMax and sold it for 29k to a local import car boutique.

Maybe this is a Nashville thing but the 2 carmax locations here try to steal your car.