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Old 11-03-2011, 10:38 AM   #31
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Originally Posted by ESP123 View Post
I don't quite understand what happens with taxes when you trade. Can someone explain this?
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Originally Posted by hayhonker View Post
Yes please explain. The way the dealer was explaining it to me sounded like a creepy sales pitch. If it's legit maybe i'll accept their offer.
For North Carolina . . . .

Sell privately = You pay NC Highway Use Tax whenever title is transferred. I believe it's 3% of the property tax value. So if your jeep is worth $20k according to the property tax man, you'll have to pay the DMV $600 to transfer title to another person. See here.

Trade-in = An exception to the above mentioned rule that generates no tax liability.

Many states have an outright sales tax rather than a highway use tax. Either way, you need to deduct the amount of the tax you must pay on a private sale in order to really compare whether a private sale or a trade-in is a better deal.

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Old 11-03-2011, 10:42 AM   #32
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Originally Posted by 3JKs1H1 View Post
My '12 JKU Rubi auto hardtop tow, remote start, climate was $33.7K. Why would anyone pay near 30 for an '09?

I was offered $28K from dealer for my 2010 rubi jk, but i have less than 14k on it, fully loaded except nav and leather. Only damage is it might be dusty since i haven't wiped it down for about two hours now................... I just don't like the colors enough for 2012 to trade and i have no note on it. Really would like direct injection too. Might do the trade in a couple of years.

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Old 11-03-2011, 10:44 AM   #33
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For North Carolina . . . .

Sell privately = You pay NC Highway Use Tax whenever title is transferred. I believe it's 3% of the property tax value. So if your jeep is worth $20k according to the property tax man, you'll have to pay the DMV $600 to transfer title to another person. See here.

Trade-in = An exception to the above mentioned rule that generates no tax liability.

Many states have an outright sales tax rather than a highway use tax. Either way, you need to deduct the amount of the tax you must pay on a private sale in order to really compare whether a private sale or a trade-in is a better deal.
Good stuff. Thanks.
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Old 11-03-2011, 11:04 AM   #34
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I don't quite understand what happens with taxes when you trade. Can someone explain this?
Where I have lived, the trade-in is deducted from the price paid for the new vehicle and taxes are paid on the balance. This should always be factored in on selling your trade or trading-in the trade. Paying 30k cash or finance because you sold your old jeep means you will pay taxes on 30k (at 3% is 900.00). The same 30k vehicle with a 22K allowance on trade-in will mean you pay taxes on only the difference -- 8K (at 3% is 240.00). Be sure you add the difference to your asking price for selling your trade.
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Old 11-03-2011, 11:34 AM   #35
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Originally Posted by skihoser View Post
Where I have lived, the trade-in is deducted from the price paid for the new vehicle and taxes are paid on the balance. This should always be factored in on selling your trade or trading-in the trade. Paying 30k cash or finance because you sold your old jeep means you will pay taxes on 30k (at 3% is 900.00). The same 30k vehicle with a 22K allowance on trade-in will mean you pay taxes on only the difference -- 8K (at 3% is 240.00). Be sure you add the difference to your asking price for selling your trade.
That is how it is in Illinois...
I have a spreadsheet and I'm factoring in trade-in adjustments on tax as well.

Really depends on the state.

A high value trade-in can save you quite a bit on taxes.
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Old 11-03-2011, 12:00 PM   #36
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...A high value trade-in can save you quite a bit on taxes.
I'll have to figure out the deal in MD. My trade is worth more than the JK. Tax on the JK will be $23XX. Dealer says in MD I can get a $2400 tax credit on the sale because my trade-in is worth more.

So they are saying their offer, while $3000 less than I'd like, is really only $600 less when all is said and done. And that $600 could likely be made up for elsewhere. On top of TL discount for example.
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Old 11-03-2011, 12:05 PM   #37
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My '12 JKU Rubi auto hardtop tow, remote start, climate was $33.7K. Why would anyone pay near 30 for an '09?
Its called good resale value. Be thankful for it!
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Old 11-03-2011, 12:08 PM   #38
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Originally Posted by skihoser

Where I have lived, the trade-in is deducted from the price paid for the new vehicle and taxes are paid on the balance. This should always be factored in on selling your trade or trading-in the trade. Paying 30k cash or finance because you sold your old jeep means you will pay taxes on 30k (at 3% is 900.00). The same 30k vehicle with a 22K allowance on trade-in will mean you pay taxes on only the difference -- 8K (at 3% is 240.00). Be sure you add the difference to your asking price for selling your trade.
Interesting . . . I'd expect NC purchases work the same way.

So, taking that example further and coupling it with NC's Highway Use Tax (or sales tax depending on the state) would mean that selling privately and then buying from a dealer may catch you coming and going--you pay a tax to transfer the title in the private sale and you pay a higher tax to make the purchase from a dealer because you have no trade-in.

That seems really aggressive. I wonder if the highway use/sales tax in a private sale is more commonly paid by the buyer during a title transfer? I've never been part of a private vehicle sale in any state, so I just don't know.
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Old 11-03-2011, 04:48 PM   #39
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Where I have lived, the trade-in is deducted from the price paid for the new vehicle and taxes are paid on the balance.
This is how it is in MN where the sales tax on vehicles is approximately 7% so definately plays into the trade/sell outright decision
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Old 11-03-2011, 04:49 PM   #40
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Interesting . . . I'd expect NC purchases work the same way.

So, taking that example further and coupling it with NC's Highway Use Tax (or sales tax depending on the state) would mean that selling privately and then buying from a dealer may catch you coming and going--you pay a tax to transfer the title in the private sale and you pay a higher tax to make the purchase from a dealer because you have no trade-in.

That seems really aggressive. I wonder if the highway use/sales tax in a private sale is more commonly paid by the buyer during a title transfer? I've never been part of a private vehicle sale in any state, so I just don't know.
In MN the buyer pays the tax when they get their license plates and transfer the title on a private sale.
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Old 11-03-2011, 04:58 PM   #41
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so they arent making a new jeep for 2013? im lost.....
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Old 11-03-2011, 05:05 PM   #42
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so they arent making a new jeep for 2013? im lost.....
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Old 11-03-2011, 05:11 PM   #43
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Nope, Chryslers shutting down production on 1 Jan 2013-thru the fiscal year-

That'll show great 2012 (new jeep) sales as , "record setting"-

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Old 11-05-2011, 02:35 PM   #44
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Well I just ordered the new Jeep yesterday. The dealer gave me some info about VOTS (Vehicle Order Tracking System) I guess it's a new thing. I placed the order Friday evening, so it probably won't be in the system until Monday. I haven't received any emails yet.

I went with a couple of new options I didn't have in my '09.
  • Heated Front Seats (I know some of you think that's dumb for a Wrangler, but I don't care)
  • Nav system upgrade (because I had two GPS's and both of them messed with the computer's wireless causing my remote key less entry to not work; so I didn't have GPS which I like to have, especially when I go somewhere new)
  • Black Forest Green

Everything else is standard for the Unlimited Rubicon model. I almost opted for a two door instead, but I dunno...What if I don't like it?

Well, now I play the waiting game. I'm told it will take about 5-8 weeks. I really hope it doesn't get delayed.
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Old 11-05-2011, 04:34 PM   #45
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I hate to be the bearer of bad news, Zeddjb, but:

Checking your vehicle status ends 11/12

Congrats on your order, though. Vots and InSight were about as accurate as amateur dowsing, in my opinion.
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Old 11-05-2011, 06:27 PM   #46
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I hate to be the bearer of bad news, Zeddjb, but:

Checking your vehicle status ends 11/12

Congrats on your order, though. Vots and InSight were about as accurate as amateur dowsing, in my opinion.
Thanks. I didn't really expect it to give me any real information. I still can't wait though.

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