Dealer trade in or private sale to swap 21 to 22?

[abs]

I didn't end up getting the exact build I wanted and even waited an extra six months which Ford gifted me a five-year 75,000 mile bumper-to-bumper warranty for free.

At that point I put in a build a year ago for a 22, with everything I wanted, knowing I would likely be able to sell the 21 and be fine… the 21 is a soft top, gray, Badlands with Sasquatch and less than 10,000 miles. The dealers offering me 55, could probably do 60 private. The new one is the same with a few extras and a hard top.

Haven't done a swap like this before, wondering about pitfalls, pros/cons, just do private etc...any thoughts appreciated.

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[Rick Astley]

It's a broad topic for sure, you should Google search this for your state to be informed of the potential tax implications/benefits of a trade-in vs. Private sale.

In my state the sales tax advantage of the trade in would create equal value to the higher private party sales price using your example above.

There's more here than just it being a Bronco, and you will need info for your local area.

 

[PWillette]

Considering potential tax implications and title transfer paperwork...for $5k difference I'd go the dealer trade route. Maybe haggle the dealer for extended warranty or accesories.

 

[Losy]

my dealer beat any legit private party offer I had. My Badlands was fully a loaded MY22.

 

[69-300]

I did the same - my dealer was offering only MSRP for the '21 so I went private - covered the new one + all costs + some accesories

 

[rayhil67]

Here in PA the tax credit on 55K trade in would beat the extra 5k on private sale and also you would save time/hassles of selling private

 

[JeffL]

depending on what state you live in trading is probably the way to go. You'll only pay sales tax on the difference between the 2 vehicles at least that's how it works here.

trading also avoids having to deal with potential buyers

 

[RagnarKon]

As others have mentioned... it highly depends on WHICH state you live in.

In many states... if you trade in a $55,000 vehicle and buy a $62,000 vehicle (as an example)... you only have to pay sales tax on $7000, which obviously is awesome. In other states, you have to pay sales tax on the full $62,000 regardless of what you trade in. And of course some states have no sales tax at all.

If doing a private sale nets you an extra $5000... then yeah, it's probably worth the hassle of doing a private sale. If it only nets you an extra $600 or so due to having to pay sales tax, then maybe it isn't worth it to you to go through the hassle.

 

[F OR D]

Considering potential tax implications and title transfer paperwork...for $5k difference I'd go the dealer trade route. Maybe haggle the dealer for extended warranty or accesories.

this hands down. tons of threads on this. you deal with sales and cap gain tax, etc. also consider any profit on trade reduces new loan, principal, and is a tax benefit in this example.

 

[604Bronco]

When selling a vehicle, I always sell it to the dealership I'm buying the newer vehicle from. As @Rick Astley mentioned above, the tax benefits are worth it (at least here). I also don't have the time and patience to sell privately - Too many tire kickers (pardon the pun) and low ballers out there. The dealership is seamless and fair (and in my latest one, well above my thoughts on what they'd offer).

 

[AZ_Liberty]

OP is in California. Cali does not have a "net" sales tax structure. Op does not get a sales tax break by having a trade.

For $5k I'd do the hassle of a private sale.

I am in a net sales tax state (AZ) and I still got $3k more by selling my Expy privately over a trade.

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