Carmax Appraisal Offer

[Dragline]

Check out Carvanna, they offered me $5000 more than car max , all you have to do is enter your license plate number to get an instant quote.

Carvana has been at the bottom, and often laughable, on all of the vehicles I've run through them. I put my Bronco VIN in a while back and it stumped their algorithm altogether.

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[SPS4]

I saw where Carmax offered $93K for an FE. So the offers are out there. Depends on trim and market.

 

[BroncoAZ]

Technically, agree. And probably not capital gains because you would not have held onto the
Bronco long enough, for starters..

That said, for a private party, one off deal, the question becomes how would you attract attention?

Living in Taxachusetts, I’m sure the local tax collector would get his pound of flesh. Private sales still require sales tax based on the price listed on the Bill of Sale. The way to avoid any gains on paper and reduce the sales tax for the buyer would be to mark the bill of sale on a $60K vehicle at say $50K and have the buyer pay the difference in cash.

With my MSRP of $47085 in MA I’ll pay $2943 for 6.25% sales tax at initial purchase, $1059 in excise tax year one, $706 in year two, $471 in year three, $294 in year four, and $118 for year five and on. $5591 over 5 years. Where I lived in AZ sales tax was 9.1% or $4285 and the vehicle license tax would be $791, $662, $555, $465, $391 to an eventual minimum of $18. AZ would be $7149 over 5 years. Hard to believe that MA is cheaper on something. There is a $500 difference in registration over 5 years, but AZ is still $1000 higher. By year 10 AZ breaks even and is cheaper from there.

In MA they have a separate division of taxation to scour the marinas and harbors looking for tax cheats who register their yachts in RI rather then pay the exorbitant annual excise tax in MA. I thought it was funny when they caught John Kerry with his $7M yacht. This article explains the taxes, but he got caught with the boat in MA later.

https://www.nbcnews.com/id/wbna38378992

 

[MayhemMike]

Just yesterday I was on car gurus and thought it was amusing that several Broncos were listed $10K over sticker and car gurus had them listed as “ great bargain” on their value scale.

 

[Shotsy]

Technically, agree. And probably not capital gains because you would not have held onto the
Bronco long enough, for starters..

That said, for a private party, one off deal, the question becomes how would you attract attention?

It's a short term capital gain. A long term capital gain is if you owned what you are selling for over 3 years.

In any case, if you make a profit on your purchase, the government will also make a profit off of you.

 

[OU812]

It's a short term capital gain. A long term capital gain is if you owned what you are selling for over 3 years.

In any case, if you make a profit on your purchase, the government will also make a profit off of you.

OK - so I'm geeking here - unless you're viewed as a car dealer. They buy and sell and theirs are not capital gains, but ordinary income.

 

[OU812]

Living in Taxachusetts, I’m sure the local tax collector would get his pound of flesh. Private sales still require sales tax based on the price listed on the Bill of Sale. The way to avoid any gains on paper and reduce the sales tax for the buyer would be to mark the bill of sale on a $60K vehicle at say $50K and have the buyer pay the difference in cash.

With my MSRP of $47085 in MA I’ll pay $2943 for 6.25% sales tax at initial purchase, $1059 in excise tax year one, $706 in year two, $471 in year three, $294 in year four, and $118 for year five and on. $5591 over 5 years. Where I lived in AZ sales tax was 9.1% or $4285 and the vehicle license tax would be $791, $662, $555, $465, $391 to an eventual minimum of $18. AZ would be $7149 over 5 years. Hard to believe that MA is cheaper on something. There is a $500 difference in registration over 5 years, but AZ is still $1000 higher. By year 10 AZ breaks even and is cheaper from there.

In MA they have a separate division of taxation to scour the marinas and harbors looking for tax cheats who register their yachts in RI rather then pay the exorbitant annual excise tax in MA. I thought it was funny when they caught John Kerry with his $7M yacht. This article explains the taxes, but he got caught with the boat in MA later.

https://www.nbcnews.com/id/wbna38378992

My state just has sales tax - at 7+% most often, but we only have vehicle plating fees annually, that are less than $50. But we have city and state income taxes.

 

[Bradava1]

I’m totally confused by this thread. OP was offered 13k over sticker for his used Bronco, and the general consensus is that’s not really that good. I must be in the twilight zone. Also, the fact that he had to pay sales tax is completely irrelevant to the offer.

 

[tbruz]

I'd by a car every month for 62k OTD if I could sell it the next month for 69k.....I mean 84k a year in tax free income rolling 62k is "pretty good" return. rofl

Sadly mistaken if you think 12 car sales a year totaling $84K profit will be tax free( federal, state or local).
IRS will eat you alive.
Tbruz

 

[Kcmiller]

One way to avoid sales tax is to lease it and then sell to a dealer. Dealers don't pay sales tax so they'd just pay it off. You can structure a lease with very low drive off, making it beneficial.

 

[Missy_Fussy]

You joke, but didn't the new bill just weaponize the IRS and allow them to see every transaction over $600?

who knows what was in that Bill
according to madame speaker, you have to pass bills before you read them

 

[BlueOvalBandit]

I submitted mine to vroom for shits and giggles. 14k below MSRP with 1500 miles? Remind me never to use Vroom.

After getting quotes from both vroom/carvana and carmax, I'm not sure why anyone uses vroom or carvana, you might as well trade it into the dealer. Both vroom and carvana quoted me $500 for my Tacoma (which is OLD), Carmax gave me $6500. Local sales put value around $7 maybe 8k on the really high end, but it's not worth my time and energy dealing with people vs kicking it into Carmax's lot.

For giggles I plugged in my wife's 2017 Mazda to all 3 services. Carmax out bid them again by a significant margin.

 

[bbacon05]

You should check givemethevin.com, I just used them to sell my mustang, they offered $5,000 more than Carmax, Carvana, and Vroom

 

[Cartman3132]

Living in Taxachusetts, I’m sure the local tax collector would get his pound of flesh. Private sales still require sales tax based on the price listed on the Bill of Sale. The way to avoid any gains on paper and reduce the sales tax for the buyer would be to mark the bill of sale on a $60K vehicle at say $50K and have the buyer pay the difference in cash.

With my MSRP of $47085 in MA I’ll pay $2943 for 6.25% sales tax at initial purchase, $1059 in excise tax year one, $706 in year two, $471 in year three, $294 in year four, and $118 for year five and on. $5591 over 5 years. Where I lived in AZ sales tax was 9.1% or $4285 and the vehicle license tax would be $791, $662, $555, $465, $391 to an eventual minimum of $18. AZ would be $7149 over 5 years. Hard to believe that MA is cheaper on something. There is a $500 difference in registration over 5 years, but AZ is still $1000 higher. By year 10 AZ breaks even and is cheaper from there.

In MA they have a separate division of taxation to scour the marinas and harbors looking for tax cheats who register their yachts in RI rather then pay the exorbitant annual excise tax in MA. I thought it was funny when they caught John Kerry with his $7M yacht. This article explains the taxes, but he got caught with the boat in MA later.

https://www.nbcnews.com/id/wbna38378992

My buddy from work moved here from Colorado and I was trying to explain excise tax to him and he couldn't comprehend we had to pay taxes every year on top of the taxes we pay at time of purchase. F'n MA.

 

[Peter Gosenya]

If you really want to sell it and don’t want much hassle contact givemethevin.com. At the very least they will beat your car max offer or give you $100.

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