To Trade In or Sell my old car?

[jlferg0509]

Given the current market. What's the recent experiences with decisions of Trading In your used vehicles compared to just selling it out right?

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[YankeeCP]

I prefer to just trade and not deal with the hassle.

 

[techdaddy3x]

Very vehicle dependent.
I just went through this. Had a 21 Ram Limited debated selling vs trading in.
Shopped it around to a few dealers, had a number in mind and if I didn't get it, would go the selling route. All depends how much that gap in trade vs selling is worth to you.

KBB is a good source. Dealers will offer 2 numbers. Cash offer price or trade in value. Expect something in the middle to higher end of trade value and something on the lower end of selling.

 

[midmack]

My dealer wouldn't even entertain a trade-in of my 2008 Jetta. Apparently they haven't had good luck with them haha.

 

[Halbach]

Given the current market. What's the recent experiences with decisions of Trading In your used vehicles compared to just selling it out right?

If you trade it in you only pay sales tax on the difference in selling prices btw.

 

[jlferg0509]

I prefer to just trade and not deal with the hassle.

If you trade it in you only pay sales tax on the difference in selling prices btw.

Thanks, that adds more detail to what I've heard.

 

[jlferg0509]

Very vehicle dependent.
I just went through this. Had a 21 Ram Limited debated selling vs trading in.
Shopped it around to a few dealers, had a number in mind and if I didn't get it, would go the selling route. All depends how much that gap in trade vs selling is worth to you.

KBB is a good source. Dealers will offer 2 numbers. Cash offer price or trade in value. Expect something in the middle to higher end of trade value and something on the lower end of selling.

This is what I'm kinda expecting with my dealer. They've been great to work with up to this point. My mindset is aligned with what you're saying about the expectation on the number too.

 

[metroshot]

When I looked at my trade in, I asked 3 different dealers including the one I bought the Lightning.
All said around $7500.

Asked online to sell (Shift, CarMax, Vroom, Carvana) - $9800 - $11,500.

Took the $11,500 (Shift.com) - had to drive it there and they gave me a Lyft ride back home.

 

[RickLightning]

Given the current market. What's the recent experiences with decisions of Trading In your used vehicles compared to just selling it out right?

You can't make generalizations, and you can't look at experiences with other cars in other periods of time or in other parts of the country.

I priced my 2021 Mach-E with every service there is, as well as listing it on various sites. 1/2 dozen dealers approached me on one site. I ended up selling it to a dealer 5 hours away, he paid $2k more than anyone else. He sold it recently, 4+ months after buying it from me, and the last price he listed was $2,002 less than he paid me... I made thousands on the deal.

When we bought our 2021 Mach-E, I had a 2018 Fusion Energi. Dealership GM said "if you're going to shop around, there is no point in us making an offer". Carvana paid me more than anyone. The net cost of my 2018 Fusion Energi, PHEV, after 3 years and 18,000 miles, was basically the sales tax on the purchase, i.e. like $1,200...

Most dealers will not offer a competitive price UNLESS the car is something they want on their lots. Most people who trade in (most, not all), are simply lazy and can't be bothered to do some work for more money. Dealers know this.

If you trade it in you only pay sales tax on the difference in selling prices btw.

That is true in some states. In other states it's a partial credit. In the rest, it's NOTHING. In Michigan, in 2022, we get the sales tax on a value of $8,000, i.e. $480 credit, even if the vehicle is worth a lot more. Used to get nothing. They've increased the value by $1,000 every year, forget when it stops increasing.

 

[Halbach]

That is true in some states. In other states it's a partial credit. In the rest, it's NOTHING. In Michigan, in 2022, we get the sales tax on a value of $8,000, i.e. $480 credit, even if the vehicle is worth a lot more. Used to get nothing. They've increased the value by $1,000 every year, forget when it stops increasing.

Good point. YMMV depending on state.

 

[RickLightning]

Good point. YMMV depending on state.

It appears the OP unfortunately lives in O_io... Instead of saying they credit the value of the trade-in, they say they don't charge sales tax on it, which has the same net effect. Selling price of new car minus trade-in = amount taxed. In O_io. Where losses are big and broadcast on national TV to 17 million people.

 

[Shady]

If you trade it in you only pay sales tax on the difference in selling prices btw.

this is very dependent of the state you live in.

 

[Jer]

If you trade it in you only pay sales tax on the difference in selling prices btw.

This depends on the state, unfortunately where I live the trade doesn’t reduce the sales tax liability. Only state I have lived in with this ridiculous policy

 

[VTbuckeye]

I sold to carvana after taking delivery of my lightning. 2017 Tacoma that I paid 31xxx for (plus tax on the net value with a 20k trade so about 32). Toyota offered 30k, ford 29k and carvana 32.3k. I am waiting on a refund check from the state DMV for the sales tax credit. We have 3 months to complete one purchase/sale cycle to get credit (it does not have to be at the dealership, but it is faster). I was tempted to sell our 3rd vehicle, a 2016 xc90 phev, but with the used values falling it is better to just keep it and have it available when needed. An ICE powdered vehicle is nice for long trips to charging deserts, but the rest of the time we prefer EV.

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