A wakeup call on trade-in value

[ironpig]

What "racket"? They do exactly as they describe.
Once you agree on the price, they email you a FedEx overnight label for your title, once they get the title in Ft Worth they FedEx (priority overnight with a tracking #) a check to you immediately. 100% legit.
When I was selling my 2017 Bolt in Sept 2020, Vroom was $3.5K+ higher than anyone else. So instead of Carvana handing me a check for $16K on the spot... I waited and got a check via Fedex for $19.5K six days later.

They take the car and then inspect it and often lower the price. Any other company gives you a check on the spot. I'd never let someone take my car and wait for the money. lunacy.

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[dtb369]

I would try Shift as well. Very recently sold a 2016 Colorado with Shift for $6k more then all the other companies offered that were mentioned. Actually sold the truck for the same price as it was purchased brand new 6 years ago.

 

[Ccomtois]

When my turn came to go through the purchase process, RIVIAN offered me $46k for my 2020 Jeep Gladiator Launch Edition (All options ..). At the time KBB listed the Trade-in value at $55-58k. So naturally I assumed RIVIAN was lowballing me and declined their offer.
Today, only a few days later, I went to Carmax to try and get an offer. Well they only offered me $43K. And KBB's own "Cash now offer" came in at only $44K. So RIVIAN was actually being very generous with their offer.
Keep that in mind when your turn comes. Go to Carmax and see what they'll actually give you. KBB numbers are total BS.

I've decided to keep both trucks for now and see if I like the EV life as much as I think I will. In 3 months I'll see what I feel like doing.

To Recap:

RIVIAN offer: $46500
Carmax: $43000
KBB offer: $44000
Carvana: $42899
Vroom: $43201
KBB Trade-in value: $58K

I'm just curious, did you consider that since your Jeep was newer - you (may) get to rollover the taxes you paid to offset some of the cost of the Rivian. I'm going to be in that position because I have a 2021 Ford F-150. Trading toward a new vehicle there should be tax perks in doing so....vs is selling it at a slightly higher amount.

 

[trez63]

I'm just curious, did you consider that since your Jeep was newer - you (may) get to rollover the taxes you paid to offset some of the cost of the Rivian. I'm going to be in that position because I have a 2021 Ford F-150. Trading toward a new vehicle there should be tax perks in doing so....vs is selling it at a slightly higher amount.

I believe some states do that. I live in CA and I don't believe CA does. At least I hope not cause otherwise I have made a huge mistake by not taking their offer.

 

[AxelR]

All the tax talk doesn’t apply to us in California unfortunately. We get hosed on each purchase for the full amount.

 

[trez63]

Okay I found some info on this:

In most states, when you trade in a car and purchase a new vehicle at the same time, you are only taxed on the sales price of the car minus the value of your trade-in. However, if you live in California, Hawaii, Kentucky, Maryland, Montana or Washington, D.C., you'll pay sales tax on the full price of the new vehicle, regardless of your trade-in allowance. As of 2018, Michigan allows a trade-in credit on up to $5,000 of the value of a trade-in. The exemption will grow by $1,000 per year until it reaches $14,000.

 

[trez63]

All the tax talk doesn’t apply to us in California unfortunately. We get hosed on each purchase for the full amount.

It's pretty ridiculous how much tax revenue a single car generates. Every single time it sells it creates new sales tax revenue. And cars in CA typically change hands 2-3 times. And with the recent inflated prices the sales tax revenue has gone through the roof.
It's important to know though that sales tax revenue is a combination of State and County (and in some cases City) tax rates. The lowest being 7.25% and the highest I know is 10.25% at Alameda county. I guess I should consider myself lucky at 7.75%

 

[Gshenderson]

Okay I found some info on this:

In most states, when you trade in a car and purchase a new vehicle at the same time, you are only taxed on the sales price of the car minus the value of your trade-in. However, if you live in California, Hawaii, Kentucky, Maryland, Montana or Washington, D.C., you'll pay sales tax on the full price of the new vehicle, regardless of your trade-in allowance. As of 2018, Michigan allows a trade-in credit on up to $5,000 of the value of a trade-in. The exemption will grow by $1,000 per year until it reaches $14,000.

Montana has no sales tax. It’s why many people setup Montan LLCs and title and register their expensive cars in MT. It’s technically tax fraud, but it doesn’t stop people from doing it.

 

[ironpig]

Montana has no sales tax. It’s why many people setup Montan LLCs and title and register their expensive cars in MT. It’s technically tax fraud, but it doesn’t stop people from doing it.

Yep - there are a lot of fancy cars driving around with Montana plates in Brentwood and Beverly Hills.

 

[Gshenderson]

Well, I guess there is a way to effect the perfect crime... hack a bank account then wire transfer the $$$ to an accomplice's account. If there's no way to get the stolen $$ out of the receiving account then the thief wins.

Google Bank of Bangladesh hack. $1B stolen over a weekend via wire transfer. They did not get the money back.

 

[Ccomtois]

All the tax talk doesn’t apply to us in California unfortunately. We get hosed on each purchase for the full amount.

Yeah, I didn't think it was the case for every state. It's just flat out wrong imo...Sorry about that CA folks, as well as the other states. Getting 'double taxed' is bs.

 

[Rhidan]

Right... unless the bank discovers fraud has been involved (i.e. someone sending the funds from a hacked bank account).

Someone hacks a bank account then buys a vehicle via wire transfer. A week later paying Bank discovers the paying account was hacked. They will have the funds reversed back into the hacked account. No way will they let you keep the funds from a hack account. You are out the $$$ and your car. I'm sure it's happened, scammers scam... that's what they do.

Well, I guess there is a way to effect the perfect crime... hack a bank account then wire transfer the $$$ to an accomplice's account. If there's no way to get the stolen $$ out of the receiving account then the thief wins.

It has been a long time since law school, but no that's not how it works under the UCC in most states. If you are an innocent third party purchaser/seller, you get to keep the money and the person who was hacked has to track down the crook to recover. Obviously, if you are not truly an innocent third party, but an accomplice who worked with the fraudster, you do not get the benefit of that rule.

You'd be surprised that after 500 years of written law, the western world has developed some rules to avoid loopholes.

 

[trez63]

I just updated the main post with what Shift offered me. It's actually the same exact offer as RIVIAN at $46,500. That's the highest offer so far. But it's pending an evaluation appointment. None of these offers really work for me cause below $50K I'll just keep the truck for now until I'm sure the R1T is the right truck for my use. If I don't drive the Gladiator even once in the next 30 days then I'll know ...

 

[Tanquen]

Yeah, I didn't think it was the case for every state. It's just flat out wrong imo...Sorry about that CA folks, as well as the other states. Getting 'double taxed' is bs.

How is being taxed the full amount on a new car you buy, being double taxed? I don't mind paying my fair share but I'm tired of all the loopholes that people that work so much harder than everybody else get to use just because they've amassed a larger amount of money.

 

[Tanquen]

Its a hassle, but definitely worth it. If you’re selling a MS, you should be able to get top dollar privately

I just checked Kelley Blue Book and trade-in value is $60k to $66k and direct is only like $2,000 more. If that's correct then I don't know why anybody would sell direct. I am surprised at the amount, I thought it'd be closer to $40k.

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