went to buy my JK last night
03-25-2007, 08:57 AM
#12
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Check on sales tax and how it works on a new vehicle purchase.
In Iowa, we pay the difference in sales tax from price paid for vehicle less trade in price of car trading in (since they are counting on it having sales tax associated with it being sold again by the dealer...and for more than what you traded it in at).
Even at 5% with a 15k tradein, that is $750 in sales tax difference in what one would pay difference between selling "privately" and trade in when figuring tax on your new vehicle....you would need to net more than $750 difference in selling it privately to come out ahead. Not a problem when they offer a really "low" price on tradein...but if they give you a good price on tradein....could.
In Iowa, we pay the difference in sales tax from price paid for vehicle less trade in price of car trading in (since they are counting on it having sales tax associated with it being sold again by the dealer...and for more than what you traded it in at).
Even at 5% with a 15k tradein, that is $750 in sales tax difference in what one would pay difference between selling "privately" and trade in when figuring tax on your new vehicle....you would need to net more than $750 difference in selling it privately to come out ahead. Not a problem when they offer a really "low" price on tradein...but if they give you a good price on tradein....could.
03-25-2007, 10:25 AM
#14
JK Enthusiast
Here's what I did and saved almost $1,000 on sales tax!
Ordered 07 Rubicon through dealer.
Then sold my 99 Tacoma pickup through Craig's list (sold it in 2 days; listed Fri, sold on Sun!). Told the buyer I wanted to drive it until my 07 Rubicon came in. He said no problem! Paid $500 down payment.
Dealer said when the 07 comes in, to bring the pickup and buyer to the dealership. They would give me a credit for the sale of the pickup ($9,250). They passed the transaction through the dealer; sold the truck to my buyer for the same price. I did not have to pay the WA state sales tax on the sale of my truck. We both completed all the paperwork at the dealership. Took about an hour!
03-25-2007, 10:50 AM
#15
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It seems pretty obvious that they're trying to take advantage of you, but you can't blame them for doing their job, I suppose. 
Here's what I did: I was trading in my WRX with some cosmetic damage that I knew the dealership could repair on their own dime for far less than I would pay out of pocket. I got the dealership's "best price," (not discussing trade-in at all) then shopped around a couple other dealers. I found one that was willing to beat the first dealer's "best price" (which somehow would've put them $800 under the supposed invoice price - yeah right. ).
Went back to the first dealership, and showed them the number that I was offered. They hemmed and hawed, and then told me that they just couldn't match that price, as they'd be losing money, etc. Again, BS. So, I told them that I'd give them my business if they could bring their "best price" closer to what the other dealership was offering AND IF they'd give me fair value on my trade-in, given that I wouldn't be trading it to them for 2 - 3 months (until my JK came in). So, I got them to agree on a fair price for my trade-in that would hold and still be good at the time when my JK came in (it was a little less than what it would've been worth right on the spot, but this was with the understanding that the WRX would have several thousand more miles on it, and would've depreciated for several months more).
Ultimately, I ended up paying under sticker, out-the-door, WITH a 7-year Mopar service contract added on. I know that I got a decent deal. If I had been out for blood, I probably could've done even better, but I was in a good mood, I guess.
Don't "settle" with a dealership that doesn't leave you feeling like "you won." You can (and will) do better if you're willing to bring another dealer or two into the mix, and then can play hardball with the figures. I have NEVER paid even close to sticker, out-the-door, for any of the new vehicles I've purchased. Know what you're willing and able to pay before you ever get to the dealership. Edmunds.com used to be really good about providing inside info on pricing, but it's pretty obvious that they've been compromised, and are now a tool of the dealerships compared to what they used to be...
You'll be amazed at exactly how flexible their "best price" can be when they know that they're about to lose your business to a hated across-town (or county) rival... Good luck, and keep us posted!
Here's what I did: I was trading in my WRX with some cosmetic damage that I knew the dealership could repair on their own dime for far less than I would pay out of pocket. I got the dealership's "best price," (not discussing trade-in at all) then shopped around a couple other dealers. I found one that was willing to beat the first dealer's "best price" (which somehow would've put them $800 under the supposed invoice price - yeah right.
).Went back to the first dealership, and showed them the number that I was offered. They hemmed and hawed, and then told me that they just couldn't match that price, as they'd be losing money, etc. Again, BS. So, I told them that I'd give them my business if they could bring their "best price" closer to what the other dealership was offering AND IF they'd give me fair value on my trade-in, given that I wouldn't be trading it to them for 2 - 3 months (until my JK came in). So, I got them to agree on a fair price for my trade-in that would hold and still be good at the time when my JK came in (it was a little less than what it would've been worth right on the spot, but this was with the understanding that the WRX would have several thousand more miles on it, and would've depreciated for several months more).
Ultimately, I ended up paying under sticker, out-the-door, WITH a 7-year Mopar service contract added on. I know that I got a decent deal. If I had been out for blood, I probably could've done even better, but I was in a good mood, I guess.
Don't "settle" with a dealership that doesn't leave you feeling like "you won." You can (and will) do better if you're willing to bring another dealer or two into the mix, and then can play hardball with the figures. I have NEVER paid even close to sticker, out-the-door, for any of the new vehicles I've purchased. Know what you're willing and able to pay before you ever get to the dealership. Edmunds.com used to be really good about providing inside info on pricing, but it's pretty obvious that they've been compromised, and are now a tool of the dealerships compared to what they used to be...
You'll be amazed at exactly how flexible their "best price" can be when they know that they're about to lose your business to a hated across-town (or county) rival... Good luck, and keep us posted!
04-01-2007, 04:47 AM
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Went to a different dealership yesterday afternoon. Its a local one very small, told them I get FFP pricing told them what options I wanted the printed me out the sheet showing the prices, then they asked about my trade I told them I looked it up on 4 different websites and was coming up between 15500 and 16500. They told me that they would be in that area on trade if I decided to do the deal. I would have to order it though so my trade would be whatever my car is worth then. I am kinda scared to place an order, seems like in 2 months when it shows up they could stick me with low trade or I would have to walk away and loose my deposit
04-01-2007, 04:49 AM
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Went to a different dealership yesterday afternoon. Its a local one very small, told them I get FFP pricing told them what options I wanted the printed me out the sheet showing the prices, then they asked about my trade I told them I looked it up on 4 different websites and was coming up between 15500 and 16500. They told me that they would be in that area on trade if I decided to do the deal. I would have to order it though so my trade would be whatever my car is worth then. I am kinda scared to place an order, seems like in 2 months when it shows up they could stick me with low trade or I would have to walk away and loose my deposit
04-01-2007, 04:50 AM
#18
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Maybe not!!!
Here's what I did and saved almost $1,000 on sales tax!
Ordered 07 Rubicon through dealer.
Then sold my 99 Tacoma pickup through Craig's list (sold it in 2 days; listed Fri, sold on Sun!). Told the buyer I wanted to drive it until my 07 Rubicon came in. He said no problem! Paid $500 down payment.
Dealer said when the 07 comes in, to bring the pickup and buyer to the dealership. They would give me a credit for the sale of the pickup ($9,250). They passed the transaction through the dealer; sold the truck to my buyer for the same price. I did not have to pay the WA state sales tax on the sale of my truck. We both completed all the paperwork at the dealership. Took about an hour!
Here's what I did and saved almost $1,000 on sales tax!
Ordered 07 Rubicon through dealer.
Then sold my 99 Tacoma pickup through Craig's list (sold it in 2 days; listed Fri, sold on Sun!). Told the buyer I wanted to drive it until my 07 Rubicon came in. He said no problem! Paid $500 down payment.
Dealer said when the 07 comes in, to bring the pickup and buyer to the dealership. They would give me a credit for the sale of the pickup ($9,250). They passed the transaction through the dealer; sold the truck to my buyer for the same price. I did not have to pay the WA state sales tax on the sale of my truck. We both completed all the paperwork at the dealership. Took about an hour!
04-01-2007, 05:33 AM
#19
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I got the same - a price that would be honored on my trade-in vehicle at the time of delivery, as long as it was under X miles (and no matter how long it took for the JK to arrive). They actually made out pretty good in this regard, because I was WAY under-mileage at the time I traded it...