Who set the trade-in values?

[Bowhnter]

Originally Posted by monte

If you sell private.
Don't forget the sales tax that you have to pay on the amount of the trade in when you buy the new unit.

Agree, that counts. And as others have mentioned, sometimes it's not worth the hassle of selling outright.

Today I was making a deal out of state when my local dealer called with one last ditch effort. It worked, we were able to come to deal and even though I am getting fleeced on my trade, the new unit was so low it almost made up for it.

Thanks for all your input.

[PenJoe]

Good point, monte, it can make a big difference. Not sure how that rings out when you file taxes. Sales tax on high ticket items is a deduction.It is likely a percentage.

[bjlyons]

I have to agree w/everything that's been said. Each person has to evaluate for him/herself what is a good deal for them. When we traded ours back in Feb of 15, it was 12 yrs old and nickel dime us to death. Even the week before we completed the deal, I had to call for repair. Through my own fault ($25 a month in payments) I owed more than it was worth. But I got a Silver Back less than two yrs old for almost half the msrp new and my unit paid off. To me it was a good deal. To others maybe not. Its up to each buyer.

[GOTTOYS]

Originally Posted by PenJoe

Good point, monte, it can make a big difference. Not sure how that rings out when you file taxes. Sales tax on high ticket items is a deduction.It is likely a percentage.

No deduction for sales tax here in MN. Be careful with some of the "tax advice' you get on the internet. It could get you in trouble..

[Still Kickin]

Originally Posted by bikendan

Yep, the dealers set the values.

Your statement needs clarification; in the case of NADA values, you first need to be a member, second, you need to provide data to the association on a regular basis with detailed reporting, of which is then used to produce the numbers you see in their monthly value guides. If the data reported is accurate, then the published numbers are a fair representation of trade in values. If not, GIGO.

[MillerTime]

Originally Posted by GOTTOYS

No deduction for sales tax here in MN. Be careful with some of the "tax advice' you get on the internet. It could get you in trouble..

Same here in OK. Campers and vehicles.
You pay excise tax on purchase price before trade in or down payment.
I still cant figure out how they get the numbers on boats, because its way cheaper.

[PenJoe]

Gottoys, I was referring to Federal Income Tax. In Florida, there is no state income tax. Thanks for bringing that to my attention.

[Bowhnter]

Originally Posted by MillerTime

Same here in OK. Campers and vehicles.
You pay excise tax on purchase price before trade in or down payment.
I still cant figure out how they get the numbers on boats, because its way cheaper.

The dealer in OK gave me a quote sheet with $0 tax on it. I would have had to come back to TX and pay tax though.

Would I have had some excise tax in OK too?

[MillerTime]

Originally Posted by Bowhnter

The dealer in OK gave me a quote sheet with $0 tax on it. I would have had to come back to TX and pay tax though.

Would I have had some excise tax in OK too?

Nope. I buy cars from texas all the time. And i also use to live in texas when going to school. No fees payed from other states.
Here you can buy from anywhere without paying tax, you pay tax when you tag and title it here at the tag office. I think the rate is 3.42% or something close plus tag and title fees.
I know dealers here wont charge tax, cause its collected at tag office.

What dealer you working with?

[Bowhnter]

It was RV General

[MillerTime]

Originally Posted by Bowhnter

It was RV General

I don't know much about them, other than they have a new location right by the Tri-city, Newcastle exit.

We ordered both of our 5th wheels at Oklahoma Rv Center in Moore and they were easy to work with and beat the price of RVwholesalers once you figured the $1700 shipping cost to bring it down here.

[davel1971]

Originally Posted by aceinspp

Basically the NADA the dealer uses is a rip off. They give you what it says its worth then turn around and sell your unit for 5 grand more. Later RJD

they do deserve to make a profit. Considering many trades are in need of repairs, and some have major water damage, they are taking a risk with each one taken.

[davel1971]

it's called a NADA "guide" for a reason. It's a guide. The numbers are not set in stone. The dealer is not required to give you that price in trade. Actual condition always varies. Market trends matter too. Some models sell lots easier than others. They won't invest heavily in something that will likely sit around, or in a model they already have a few of on the lot.

[PenJoe]

Bowhunter, when purchasing, you should only pay tax in the state that you are obtaining the license plates and title. For instance, we purchased a MH in Minnesota and it would be based in Wisconsin.The Minnesota dealer did not have "reciprocity" with Wisconsin. The dealer collected the estimated Wisconsin tax when doing the transaction, then issued a check back to us in the same amount in our name. We then went to a Wisconsin DMV office for title and plates. The WI DMV is aware that we have Florida driver's license. Their only concern was where the RV would be based. And it is based at our WI residence. We have Florida residency which requires 6 months and a day.

We purchased a new vehicle in Wisconsin, anticipating a move to Florida. This dealer had reciprocity with Florida, collected Florida sales (excise) tax and applied for title and registration in Florida. We received the Florida plates and title in Illinois before moving to Florida. When we settled in Florida, we changed the address on title and plates. We paid tax and title once.

Both of these transactions were legitimate and were researched before we did it. Had we gotten registration in MN on the RV or the vehicle in Illinois, we would have had to pay taxes to both states when transferring.

Ref to: "You pay excise tax on purchase price before trade in or down payment." posted by Millertime. You should be paying tax on the purchase price, less the trade in. The trade has already been taxed. That's one of the advantages of a trade. With no trade, excise tax is on the full purchase price.

[MillerTime]

Originally Posted by PenJoe

Bowhunter, when purchasing, you should only pay tax in the state that you are obtaining the license plates and title. For instance, we purchased a MH in Minnesota and it would be based in Wisconsin.The Minnesota dealer did not have "reciprocity" with Wisconsin. The dealer collected the estimated Wisconsin tax when doing the transaction, then issued a check back to us in the same amount in our name. We then went to a Wisconsin DMV office for title and plates. The WI DMV is aware that we have Florida driver's license. Their only concern was where the RV would be based. And it is based at our WI residence. We have Florida residency which requires 6 months and a day.

We purchased a new vehicle in Wisconsin, anticipating a move to Florida. This dealer had reciprocity with Florida, collected Florida sales (excise) tax and applied for title and registration in Florida. We received the Florida plates and title in Illinois before moving to Florida. When we settled in Florida, we changed the address on title and plates. We paid tax and title once.

Both of these transactions were legitimate and were researched before we did it. Had we gotten registration in MN on the RV or the vehicle in Illinois, we would have had to pay taxes to both states when transferring.

Ref to: "You pay excise tax on purchase price before trade in or down payment." posted by Millertime. You should be paying tax on the purchase price, less the trade in. The trade has already been taxed. That's one of the advantages of a trade. With no trade, excise tax is on the full purchase price.

Here in Oklahoma you pay excise tax everytime, for full purchase amount.
I bought a new 2003 chevy truck, payed cash, no trade, payed about $1,100 for tag, title and tax. Had it about 6 months when the 2004 crewcab came out and i traded my 03 in on the 04. Went and payed about $1100 or so again for tag title and tax. No break for trade

You WILL NOT have a dealer in oklahoma collect fees for the state or any other state.
You will pay the taxes only one time unless you sell it and buy it again.

Our yearly tags are cheap like around $94 a year for the first few years and then it gradually gets cheaper.

We can not deduct the sales taxes from our income taxes (otherwise i would have huge write offs every year). The only way you could write off the taxes was if it was a business expense and qualified.

In oklahom there is no tax benefits for trades.

[PenJoe]

Having dealt with Wisconsin, Illinois, and Florida, the excise tax rules were pretty consistent for average buy/sell.

A couple of years ago, I applied for a disability plate in Florida. The vehicle was in a revocable trust. Florida does not allow a vehicle titled in a trust to be registered with disability plates. We had to re-title and pay a minimal excise tax because it as considered a sale in that it had "switched owners", even though DW and I are co-trustees. Wisconsin, on the other hand, does allow a vehicle in a trust to be registered with disability plates. Go figure.

Montana does not have excise tax. People from out-of-state have been purchasing high ticket Rvs and registering them through a Montana PO box in their name, thus avoiding being taxed in their home state. The home states have now been investigating these as tax fraud.

We do things by the book and make sure our research is accurate. We pay what is necessary, but don't want to needlessly pay double. Shopping across state lines is very common place today. Everyone should take the steps to do the homework first.As you point out, some states have different rules.

We do not have state income tax in Florida. However, when we have our federal taxes prepared, we are asked, routinely, if we have paid excise taxes on major purchases in excess of the standard deduction. Truck and RV purchases have put us in that category.

[bubbles]

Excise and sales taxes are like apples and oranges. Excise tax is a fixed amount where as sales tax is against a purchase price. I think. Oh well.

[Terier]

When trading in you're going to pay for the convenience of doing so.

For some of us having a trade-in is worth not having the hassle of selling it on our own. But for some of us selling it privately works out much better.