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The definition of insanity

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gtman

gtman

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@gtman - when I sell a care outside of a trade deal, the buyer pays 100% of the sales tax.

If I buy a new car without a trade, I pay 6% sales tax on the total sale price. If I buy a new (or used) car with a trade, I only pay sales tax on the difference between purchase and trade. To me, it's a perfect example of the auto dealer lobby messing with the tax code to advantage themselves.
But again that wasn't what I was saying. I was simply saying that although these inflated numbers people are getting for old trade-ins sounds good on paper the dealer will turn around and find a way to ultimately still make plenty of profit on the subsequent new car deal.
There's no advantage to trading your car in right now. They'll offer you a bigger than normal trade in value and just jack up the new car price to get their normal profit margin back.
In other words I'm talking about Billy Jones seeing these high used car prices and thinking he should trade his 19 Si in on a 'Vette because he can get SO MUCH for his car right now. And that the only positive scenario in this fucked up world is someone like Charles Wrivers who outright just sold his car to CarMax.
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charleswrivers

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@gtman - when I sell a care outside of a trade deal, the buyer pays 100% of the sales tax.

If I buy a new car without a trade, I pay 6% sales tax on the total sale price. If I buy a new (or used) car with a trade, I only pay sales tax on the difference between purchase and trade. To me, it's a perfect example of the auto dealer lobby messing with the tax code to advantage themselves.
Yep. Thatā€™s where you essentially have to get $20k in a private party sale to equal around 18.9k for the tradeā€¦ because Iā€™ll make up that $1100 in not being taxed the $18.9 trade value when put against the value of the new car. Even if you owed the full 18.9k valueā€¦even if you had zero equity, youā€™d still realize the savings if that $1100 when it was time to pay the tax man. Part of the good deal on the GenX was only having to pay tax on about 6-7k worth of car due to the trade.

I considered the loss of the tax benefit in doing the sale to Carmaxā€¦ but the bonkers amount they offered and the inflated cost of everything overrode any future sales tax benefit. Truth be told, while Iā€™ve done private party sales on older cars to get more $$$ā€¦ as their trade value was negligible and had similarly low sales tax benefitsā€¦ I canā€™t think of a time I didnā€™t trade a in later model (<5 year old) vehicle. It usually saves a grand and while Iā€™ve never had an issue with a private party saleā€¦ some of my friends have kinda had issues with joyriders. Come to think of itā€¦ *every* first test-driver always has bought my cars. I take care of my in stuff and sell it straight on for median true car private party sale cost. I let the young guy who bought my RSX Type S round down to the nearest $1000. Nice kid and I could tell he loved the car. $6k for an ā€˜02 with 140 or 150k wasnā€™t small money for a college kid. Wonder if itā€™s still doing its thing in upstate NY or if the salt or some mechanical/accidental death ever befell it.
 

TypeSiR

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Healthy markup! At least it's a nice place to live with sunny weather and beaches. Free airshow every week near the Blue Angels practice facility. Take your snorkel and catch some lobsters for dinner. You gotta look at the positives of living in Pensacola.
 

Krebsy718

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So, I saw a 2022 EX-L hatch listed online that had a ridiculous markup on it. They were pricing it at more than $10,000 over sticker. I chuckled to myself that no one would buy it. Well here's a screenshot of that very listing today...


Screenshot_20211207-174001-205.png


Yep. Some sucker bought it.
Having worked in the car industry previously I call BS on this. Just a marketing ploy.
 

wilbur_the_goose

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I contacted a dealer around Scranton, PA - they want $5K over MSRP. I politely said, "No Thank you".

That puts the cost of a Civic at about $35K. I can get a gently used BMW for that price!
 


silverrascal

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So, I saw a 2022 EX-L hatch listed online that had a ridiculous markup on it. They were pricing it at more than $10,000 over sticker. I chuckled to myself that no one would buy it. Well here's a screenshot of that very listing today...


Screenshot_20211207-174001-205.png


Yep. Some sucker bought it.
That's absolutely ridiculous. That's Type R price a few years ago. That said, I bet the 11th gen Type R is going to start $50K or more... Geezus
 

CastorX

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BalƔzs
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So, I saw a 2022 EX-L hatch listed online that had a ridiculous markup on it. They were pricing it at more than $10,000 over sticker. I chuckled to myself that no one would buy it. Well here's a screenshot of that very listing today...


Screenshot_20211207-174001-205.png


Yep. Some sucker bought it.
Almost as expensive as it will be in Europe. ?
No, seriously, this is crazy for US prices, but otherwiseā€¦
 

MJCCIVIC

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Mike
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NH
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2021 Honda Civic EX HB
So, I saw a 2022 EX-L hatch listed online that had a ridiculous markup on it. They were pricing it at more than $10,000 over sticker. I chuckled to myself that no one would buy it. Well here's a screenshot of that very listing today...


Screenshot_20211207-174001-205.png


Yep. Some sucker bought it.
But did they pay that price??
 

MJCCIVIC

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I was able to get work both sides of a deal....sold my Civic EX sedan 2021 with 5K miles that I upgraded to aftermarket LED's and the sportline spoiler to Carmax for 29K and buy a 2022 Civic Sport hatch touring for $ 30,500(MSRP) ...for once I was the windshield and not the bug
 

Mauiman

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I was able to get work both sides of a deal....sold my Civic EX sedan 2021 with 5K miles that I upgraded to aftermarket LED's and the sportline spoiler to Carmax for 29K and buy a 2022 Civic Sport hatch touring for $ 30,500(MSRP) ...for once I was the windshield and not the bug
Nice upgrade!
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