kimochiiiiiii

I have couple of question about trading in a car to a dealer.

what happens if the car that I'm trading in is worth more than the car I'm trying to purchase? do they give me a check for the difference or they don't do trade-ins unless the car that I'm buying is worth more than the car that I'm trading in.

Also if two private persons decide to trade each other's car, do each of them have to pay taxes??

TommyDeVito

Trading cars and taxes depends on the state. I would guess and think that yes you'd have to.

As far as the dealer goes on trade in, they should be able to cut you a check for the difference. Good luck getting them to go for that though.

The Gasman

If your car is worth more they'll give you the difference, most likely in a check.

I'm not sure on the answer to your second question.

Mr.E.G.

if you a trade a car in (general info here not necessarily specific to this question) you get a small break in the form of discount of the taxable price of the car.

So you have a trade that is worth 2k and you trade it in on a 10k car. You only pay taxes on 8K. fyi.

as far as trading in a car that is worth more than the car you are buying, I am assuming that you owe nothing on the trade? if that is the case, then yes they simply write you a check for the difference and if I am not mistaken you will pay no taxes on the new car (you still pay title and license)

I worked a deal like that when i sold cars but that was a long time ago. Guy traded in a late 90's model nsx and left with an accord and a used crv.

for the record, you can most certainly plan on the dealer ****ing you. this is definitely a case where selling your car to a private seller is ideal.

if you owe money on your car that you are trading then expect the waters to get muddier. dealers love negative equity because it gives them more numbers to confuse you with.

pbm317

you get a check back, granted you don't owe anything on that car you're trading in...

ace123

if two people are trading cars and they aren't clearly worth $20k+, just sell them to one another for $1. taxes? $0.07.

Skuzzy

the federalies might not be too happy with you

F22CAP2

The government already thought of that. They use the blue book value or purchase price, whatever is higher, to calculate the sale tax.

mrkjsn

You'll get a check if your car is valued more by the dealership. Keep in mind whatever they offer you, they will make money on top of that when they re-sell it. Basically, they'll make money from the car you buy from them, then they'll make money from the car you trade in. It's a win-win situation for them. Dealerships are in the BUYING and selling business.