Quote:
Originally Posted by OSSGuy
That's only true if you save more on taxes than you lose to the dealership.
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Which is very possible when you're in a state that taxes new vehicles at like 8% without a trade in.
For example, say in 2027 I try to trade me 2023 in for a new 4Runner. Let's say my 4Runner is worth $40k private party at the time and the new one is $50k, and the dealer is offering me a $37k trade in. Paying sales tax on $13k (50k - 37k = 13k) vs 50k saves me... $3,000, and the hassle of dealing with private party sales, which generally get harder as the price of the vehicle goes up.
People just show up with cash for a $5-10k vehicle, when they're looking at a $30k+ vehicle, outside of a dealership, there's less of them, and they tend to want to take it to their mechanics and look over every last thing and try to beat you down.
So in some areas there really is a point. Now, if the dealer is absolutely lowballing a trade, which I wouldn't envision on a 4Runner, that's a different story. The question is, how much money is it worth to invite the hassle of selling a vehicle private party? For me, I'd have to profit at least $1,000 above what I would lose in dealer trade minus tax savings... probably more like $2,000 though.