Custom Ordering and trade in

[Jeepster2018]

Absolutely.

You're stating absolutes which, IMO, is a mistake. It's going to vary based upon *where* the buyer lives and the various laws - especially those regarding taxes - that apply. Here the tax is based upon the *NET* price of the transaction. So getting just a *little* bit more in a private sale vs trade-in but then paying the 9.5% in taxes on the full price of the vehicle actually causes the buyer to pay MORE overall. "It depends" is the mantra here. The buyer needs to understand the specifics that apply to them, be able to calculate them, and identify where the knee in the curve is that defines break-even and then evaluate the trade-in vs private sale options against that. It's just math.

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[Flyguy81]

CO has the trade in tax exemption. Blue book on my JKUR was 32,500-36,000. Dealer offered 30,500. Put it on cars.com and another dealer offered 32,800. Sold it 5 days after listing on Blinker for 34,000 after some haggling. Got $1200 more than the dealer when figuring the tax benefit.

 

[Jeepster2018]

What year was your JK.

CO has the trade in tax exemption. Blue book on my JKUR was 32,500-36,000. Dealer offered 30,500. Put it on cars.com and another dealer offered 32,800. Sold it 5 days after listing on Blinker for 34,000 after some haggling. Got $1200 more than the dealer when figuring the tax benefit.

 

[johnnyp26]

When I ordered my 2015 JK I shopped about 10 different dealers. There were only a few that were willing to agree to a trade in price when the order was placed and honor it when the vehicle was delivered. It always kind of cracks me up, it's really not that hard to price a vehicle with a 60 day window, the auction market just doesn't move that much on most vehicles in that time. Typically they knock a few hundred bucks off what they would offer you if you were trading it in that day and everyone is happy.

I talked to a dealer today when I went to test drive the JL and they were fine with offering a price for my trade that would apply in 60 days when the order was in. Personally having worked in the business in the past I avoid dealers that refuse to do it.

My situation is a little more complicated this time because my trade in is heavily modified. In FL we have the tax break and only pay tax on the net purchase price, which would be somewhere from $2.200 to $2,800 for me, so I'd need to be sure to get at least that much more for a private sale. I have a bad feeling I'm going to end up having to take the mods off I can and selling them on their own unfortunately.

 

[BamaBuilder86]

So how do I know which law my state has? I'm in Alabama and will pay the difference between the trade and the purchase in cash, no financing.

 

[Flyguy81]

What year was your JK.

It was a 2014. Had 27k miles. And a bunch of mods.

 

[Flyguy81]

So how do I know which law my state has? I'm in Alabama and will pay the difference between the trade and the purchase in cash, no financing.

http://www.factorywarrantylist.com/uploads/3/3/9/4/3394652/alabama_sales_tax_brochure_3.pdf

In AL you pay tax on the amount due after the trade

 

[Karl_in_Chicago]

So how do I know which law my state has? I'm in Alabama and will pay the difference between the trade and the purchase in cash, no financing.

Surely your Secretary of State or whatever the name of the office there that governs such stuff has a website? Or even google "What is the sales tax for vehicles in Alabama"?

 

[simpleJL]

Surely your Secretary of State or whatever the name of the office there that governs such stuff has a website? Or even google "What is the sales tax for vehicles in Alabama"?

DMV websites usually have calculators for this.

At least California does.

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