Help me come up with a fair price

[BennyBronco69]

Long story short. I have 2 Broncos on res (Day 2 res holder). One for me and one for my dad as a surprise. I got tired of waiting on mine but kept the res just in case. I received my MY22 D90 last Tuesday. Yesterday I get a pic/e-mail that my Bronco is ready after zero updates for a couple of months. Unfortunately my dad's is still pending. I was hoping my dad's would be done first, but nope. Also, I cannot give him this one to my dad bc I got him CO (he loves him some orange cars).

So now I have this Bronco that I can abandon and watch the dealer mark-up 15k OR I can buy it and flip it.

I want to flip it to someone (already have someone lined up. He is an acquaintance. So while I know him I dont know him THAT well) with a balance of it being worth my time while not ripping him off.

Just tossing a # out there...... For it to be worth my while of getting a loan and assuming the risk if the buyer backs out, plus having to pay tax on the profit I would make, I was thinking 5k to 7,500. But even throwing that # out there makes me feel like an ass. In the end I still need to get something for the "trouble".

Really wish I could simply have him come to the dealer and buy it from them at MSRP but the dealer already told me they wont allow it since they would mark it up 15k.

Thoughts? Is 5k too much?

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[Saltlife4shore]

I'd def pay 5K over if it was the Bronco that I wanted. At this point I'm tired of waiting, and I'm sure their are others that feel the same. I'd much rather give you the 5K then a crooked dealer. That being said I want a 4 door. 5k seems fair to me.

 

[mattymik]

(1) Prepare to get roasted.
(2) I think $5,000-$7,500 is reasonable.
(3) Keep in mind you’re technically going to owe a capital gains tax

 

[TX-Hans]

(1) Prepare to get roasted.
(2) I think $5,000-$7,500 is reasonable.
(3) Keep in mind you’re technically going to owe a capital gains tax

Yup, and it's a short term capital gain since owned less than a year, which will be taxed at the same rate as his ordinary income rate. Plus, he will have to pay sales tax to the dealer on the original purchase along with title, registration and doc fees. Any mark up you do starts to get eaten up pretty quickly.

I do wonder if you could enter into a written agreement with your buyer for the two of you to buy the vehicle jointly, so both of your names are on the title, and your buyer provides the financing/funding. Then after the sale is complete and vehicle has been titled and registered by the dealer in both of your names, you submit a request, to whatever Florida agency handles titles, to modify the title and registration by dropping your name from it. He then pays you the "buy out" fee (your ADM). No idea if this approach would work but might be worth researching, and perhaps that might avoid the loss of the sales tax and other fees paid to the dealer that would be wasted by the resale.

 

[BennyBronco69]

(1) Prepare to get roasted.
(2) I think $5,000-$7,500 is reasonable.
(3) Keep in mind you’re technically going to owe a capital gains tax

Yup aware of it.

I am fine with being roasted bc whoever would is not being reasonable so their opinion is moot to me.

ADM annoyance aside, who would get a 60k loan and assume risk, then flip it for no gain? I dont want the dealer to mark it up for 15k, but I am not going to risk a thing to avoid it from happening.

 

[BennyBronco69]

Yup, and it's a short term capital gain since owned less than a year, which will be taxed at the same rate as his ordinary income rate. Plus, he will have to pay sales tax to the dealer on the original purchase along with title, registration and doc fees. Any mark up you do starts to get eaten up pretty quickly.

I do wonder if you could enter into a written agreement with your buyer for the two of you to buy the vehicle jointly, so both of your names are on the title, and your buyer provides the financing/funding. Then after the sale is complete and vehicle has been titled and registered by the dealer in both of your names, you submit a request, to whatever Florida agency handles titles, to modify the title and registration by dropping your name from it. He then pays you the "buy out" fee (your ADM). No idea if this approach would work but might be worth researching, and perhaps that might avoid the loss of the sales tax and other fees paid to the dealer that would be wasted by the resale.

Did not think of that. TBH, if he was a close friend I would have no problem doing it. But while I know the guy I dont KNOW the guy. It's too much of a risk IMO to take.

 

[Raptor911]

OP ... I assume you already know your VIN. With your VIN, go online to CarMax, Vroom and Carvana and see what they would offer you.

 

[MNBigfoot]

Yup, and it's a short term capital gain since owned less than a year, which will be taxed at the same rate as his ordinary income rate. Plus, he will have to pay sales tax to the dealer on the original purchase along with title, registration and doc fees. Any mark up you do starts to get eaten up pretty quickly.

I do wonder if you could enter into a written agreement with your buyer for the two of you to buy the vehicle jointly, so both of your names are on the title, and your buyer provides the financing/funding. Then after the sale is complete and vehicle has been titled and registered by the dealer in both of your names, you submit a request, to whatever Florida agency handles titles, to modify the title and registration by dropping your name from it. He then pays you the "buy out" fee (your ADM). No idea if this approach would work but might be worth researching, and perhaps that might avoid the loss of the sales tax and other fees paid to the dealer that would be wasted by the resale.

If you find a guy willing to do that, could you pass his info on to me, I have this bridge...........

 

[1975U15]

The rare 2dr WT. He's not family. Make it worth your effort and time. Find out what Carvana/CarMax offering to validate he's actually getting deal with small $5k markup. Many would pay that right now for the 2dr.

My.02

 

[treyrich]

Did not think of that. TBH, if he was a close friend I would have no problem doing it. But while I know the guy I dont KNOW the guy. It's too much of a risk IMO to take.

You could see if the guy could pay in advance of you buying the truck with a signed agreement, that way you wouldn’t have to finance it and you’d at least save that hassle. Tax issues are what they are though, unless there’s something like was suggested above with joint ownership

 

[Onthegas]

Props for taking care of your dad! I hope it all works out for you. In the meantime, I’m sure many of us are curious as to build specifics and what the MSRP ended up as. I do like the way you are approaching this ‘dilemma’.

 

[BennyBronco69]

OP ... I assume you already know your VIN. With your VIN, go online to CarMax, Vroom and Carvana and see what they would offer you.

Good thinking. Waiting on replies from Vroom and Carvana.

 

[TX-Hans]

Did not think of that. TBH, if he was a close friend I would have no problem doing it. But while I know the guy I dont KNOW the guy. It's too much of a risk IMO to take.

If you find a guy willing to do that, could you pass his info on to me, I have this bridge...........

Assuming the scenario I laid out would work under Florida's motor vehicle rules, paper it up with a well written contract/agreement. The risk shifts to your buyer because he's providing all funding for the vehicle (so you are not out of pocket any money or have any risk on the loan) and both of your names are on the vehicle title, meaning you are maintaining an ownership interest in the vehicle/collateral. You could even have him pay your "buy out fee" to a local attorney friend or a local title company or an accountant, all who would have a fiduciary obligation to hold the amount in escrow for payment to you once you sign to remove your name from the title. No business deal is without some risk; it's how you address the deal to minimize and shift risk elsewhere. Admittedly, it's a fair amount of work to avoid the loss caused by the sales tax and other fees...all to get $5k or so (and less in your pocket after accounting for STCG tax).

 

[BennyBronco69]

Good thinking. Waiting on replies from Vroom and Carvana.

Props for taking care of your dad! I hope it all works out for you. In the meantime, I’m sure many of us are curious as to build specifics and what the MSRP ended up as. I do like the way you are approaching this ‘dilemma’.

Its a 2dr WT
Lux
Obviously Sasq
2.7
Steps
Leather

MSRP 56390. Then add .6% tax. Then add tag and title. Then consider what I will pay in tax due to the profit.

 

[Racerdad]

Life is short. You can either walk away or do someone a favor. Tell your acquaintance that you will sell it to him at your total out of pocket cost plus a case of your favorite adult beverage (or perhaps a donation of $2k to your favorite charity). Everybody wins and you don't have to hassle with capital gains.

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