We need a WWCRD forum....

[Draco-REX]

Here's another.

 

I'm looking to pick up a BRZ this year and sell the spec.B to get it. Here's the issue:

 

I still owe money on the spec.B. I'm not upside down on it, and will be even better off by the time the BRZ comes out. But I'll still owe.

 

Now I have two options:

 

Trade it in. This is the easiest one because the dealership will handle all the bs with the loan. But I'll get 2k - 3K less for it.

 

Or I can sell it privately. I can get the most money for it, but paying off the loan and getting the title is a giant PITA juggling act. I can't ask a buyer to give me the money and trust me to give him the title later, and I don't want to give the car away while it's still in my name.

 

Should I take the hit and just trade it for simplicity's sake? Or go through the headaches of a private sale for the extra money?

 

Before you answer, there are a couple other wrinkles.

 

First, by the time the BRZ comes out, I might be able to pay off the loan on the spec.B with the money I've been saving as a down payment on the BRZ. But I don't think I'll be able to get out of the sale what I'll put into it. Should I save the money and deal with the loan in the trade/sale?

 

Another wrinkle is that Subaru won't be flooding dealerships with the BRZ. Current rumor is 500-600 per month across the US. That's roughly 1 per dealership per month. I'm sure it won't be a sell-out, but getting one optioned as I like may be difficult, so I may have to wait. If I sell the spec.B privately, I'll be driving the STI as a daily until I can get the BRZ. Not ideal, but doable in the summer.

 

TL;DR: Selling a car with a loan on it: Trade it? Sell it? Pay it off with saved down payment money first?

[El Karacho1647545492]

Protip: In Ohio, when you trade in a car on a new vehicle (doesn't apply to used vehicles), you only pay tax on the difference number REGARDLESS OF WHAT YOU OWE ON YOUR OLD CAR.

 

Example 1:

 

You live in Franklin county (6.75% tax) and are trading in a $10,000 car (which you owe nothing on) on a new $20,000 car. Instead of paying $1,350 in tax, you only pay $675. Technically your trade in is worth $10,675 in that case.

 

Example 2:

You are trading in a $20,000 car that you owe $18,000 on towards a new $20,000 car. Even though, payoff included, you're only really putting $2000 down on the new car, the difference between trade-in and new car price is $0, therefore you pay $0 in tax. So in this case, instead of giving you $20,000 for your car, its essentially $21,350 to you.

[airwg2189]

I think the biggest factor is the limited availability. If I were in your shoes, and Byers/Hatfield happens to get one that meets your criteria, I'd take the small financial hit for simplicity's sake and get the new BRZ as soon as possible. Who knows how long it'd be until you see one again. Factor in that every day you drive your spec.B it's losing value, I'd say it's not worth the headache. If, and only if, you could get it paid off completely, would I say sell it privately first.

 

Just my two cents.

[Draco-REX]

Protip: In Ohio, when you trade in a car on a new vehicle (doesn't apply to used vehicles), you only pay tax on the difference number REGARDLESS OF WHAT YOU OWE ON YOUR OLD CAR.

 

Example 1:

 

You live in Franklin county (6.75% tax) and are trading in a $10,000 car (which you owe nothing on) on a new $20,000 car. Instead of paying $1,350 in tax, you only pay $675. Technically your trade in is worth $10,675 in that case.

 

Example 2:

You are trading in a $20,000 car that you owe $18,000 on towards a new $20,000 car. Even though, payoff included, you're only really putting $2000 down on the new car, the difference between trade-in and new car price is $0, therefore you pay $0 in tax. So in this case, instead of giving you $20,000 for your car, its essentially $21,350 to you.

 

So trading it in could save me in tax the difference that a private sale would have made me. VERY interesting, I did not know that.

[El Karacho1647545492]

So trading it in could save me in tax the difference that a private sale would have made me. VERY interesting, I did not know that.

 

Yeah, strangely enough in Kentucky its the opposite where you get that tax allowance for used cars, not new.

 

EDIT: The best way to go about the negotiation with the dealer is to let them know you want trade value PLUS tax savings to equal fair private party value for your car. that way you and the dealer are negotiating to the same end, it makes both yours and their lives easier and everyone ends up happy.

[ImUrOBGYN]

Yeah, strangely enough in Kentucky its the opposite where you get that tax allowance for used cars, not new.

 

EDIT: The best way to go about the negotiation with the dealer is to let them know you want trade value PLUS tax savings to equal fair private party value for your car. that way you and the dealer are negotiating to the same end, it makes both yours and their lives easier and everyone ends up happy.

 

That's interesting. Learned something new.