gas prices are too high
my commute is too long
i am starting a business
i have to sell my baby!!!!

i really really dont want to

but i have to

now -
currently TMV for my car in private sale & dealer is 22000 and 20000 respectively, as per edmunds.com

i will be buying a corolla , which is 18000 tmv per edmunds

i owe 18000 on my 4runner to toyota financial services.

i have options, one of which is to sell privately, ebay, autotrader, wantad digest, etc. I could potentially get 22-23k.

-If i sell this car while owing on it, do i have to pay off loan before i can transfer the title?
-if i sell the car, how does NYS tax come into play? if i sell for 23k does the buyer have to pay sales tax on top of that? do i have to pay a portion to nys?

the other option is trade in.
-how does it work if the value of the trade in technically is > then what i owe?
-would they give me 20k if i owe 18?


thanks in advance for your help

You have to pay off your loan before you can privately sell it so that you can phsically transfer the title.

The Buyer only pays taxes no matter what.

They give you what they value your trade. If they give you 20k and you owe 18k they pay off the loan and give you 2k. If you trade it in though you will have a 2k deposit and NOT pay taxes on the first 20k of the new car you trade for.

So essentially if you are buying an 18k new car and trading the runner in for 20k you will not pay any taxes on the new car and have a 2k deposit for it.

so essentially getting 3575 extra from trade in?

2k extra + nys tax (1575 on 18k) ???

are they physically giving me the money or is that just how it works when you trade in your car, you dont pay tax?

Yes but the only thing you have is the 2k. You SAVE paying the taxes (the other $1,575)

As opposed to selling it privately for $21,575 its a wash. But with trading it you save the hassle of listingit, showing it, paying off the loan before you can sell.

So really you have to sell it privately for more than $21,575 to make it worth it. And I would think there is definitely some value to all the hassles of selling privately and you have to put a number on that.

For me, if I was in the same situation it wouldn't be worth selling privately for anything under $22, 200 and even then I would have to think about it.

gratsi

so now i need to get 20k+ for it from a dealer.