RE: Price Check

[dhughes@worldpassage.net (David Hughes)]

I paid cash for my GLX and so I don't think what you wrote is applicable
about me getting benefits from trading it in.

Please email me privately.  I will be unable to respond as I am leaving to
West Africa on Thursday, May 20th until June.


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David C. L. Hughes
18 Morelos Avenue #578
Forest Knolls, CA 94933
Pgr: (415) 838-0175
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> -----Original Message-----
> From: owner-jettaglx@igtc.com [mailto:owner-jettaglx@igtc.com]On Behalf
> Of mikeandcarmen@pdq.net
> Sent: Wednesday, May 19, 1999 10:10 AM
> To: jettaglx@igtc.com
> Subject: RE: Price Check
>
>
> One of the factors to consider when trading your car in is the
> tax benefit of
> trading it in vs. selling it outright.  I'm not sure if this is
> the case in
> other states, but in Texas, you are not taxed on the portion of a car's
> purchase price that is covered by your trade-in.  The following is a
> simplified example:
>
> The purchase price of the car you are buying is $20,000.00.
> The dealership is offering you $7,000.00 for your trade-in.
> You owe $2,000.00 on the car you are trading in.
> Therefore, $5,000.00 would be applied toward the purchase price
> of the car you
> are buying.
> If you trade your car in, you would only be taxed on $15,000.00
> instead of
> $20,000.00.
>
> Sales tax on vehicle purchases in Texas (new or used) is 6.25%.
> Therefore, by
> accepting the dealer's trade-in offer, the sales tax would be
> $937.50 instead
> of $1,250.00.
>
> Like I said earlier, I know that this is applicable in Texas, but
> I'm not sure
> how it works in other states.  I would suggest that you get your
> car appraised
> for trade-in, & add the tax benefit of the trade-in (if any) to
> the trade-in
> value.  If you are able to sell your car for more than that, you
> are better
> off selling it yourself.
>
> The reason that I suggest having your car appraised vs. simply
> calculating the
> tax benefit using a published wholesale value is that often, in
> order to sell
> you a car, the dealership will give you more than wholesale on your trade
> while still giving you a decent price on the car you are buying.
> They do this
> because they know that they can usually make up the difference on
> their used
> car lot.
>
> Good luck!
>
> Michael Keith
> Pasadena, TX
> '98 Jetta GLX
> '85 Golf SCCA ITB
> >===== Original Message From David Hughes <jettaglx@igtc.com> =====
> >Does it make any difference if the car is all paid off?
> >
> >
> >*=*=*=*=*=*=*=*=*=*=*=*
> >David C. L. Hughes
> >18 Morelos Avenue #578
> >Forest Knolls, CA 94933
> >Pgr: (415) 838-0175
> >*=*=*=*=*=*=*=*=*=*=*=*
> >
> >> -----Original Message-----
> >> From: owner-jettaglx@igtc.com [mailto:owner-jettaglx@igtc.com]On Behalf
> >> Of Talitmon@aol.com
> >> Sent: Wednesday, May 19, 1999 7:22 AM
> >> To: jettaglx@igtc.com
> >> Subject: Re: Price Check
> >>
> >>
> >> My opinion would be to sell the car privately,
> >> then purchase the new car.
> >> Dealers will take full advantage with disregard
> >> of your situation.
> >> Also depends on the balance of the loan
> >> versus the bluebook of the auto...Dealer
> >> will always give you low/wholesale value,
> >> and if they do give you a higher value
> >> they will add it on to the new car you are
> >> going to buy, thus raising the actual value
> >> of your new car beyond the high/retail
> >> value according to Kelley Bluebook.
> >> So when you go to sell the new car later,
> >> you will run into problems with loan
> >> balance/value, thus creating an even more
> >> vicious cycle to the advantage of a dealer.
> >>
> >> Later.........
> >> Talat
> >> 97 GLX
> >>
> >>
>
>