|Does anyone have any experience in trading in their boat?? I have a 99 Mobius that I would like to trade in for a V-drive, should I try or would I be better off selling out right? |
|Its just like a car, most of the time you can do a lot better money wise selling it out right. But, if you want to get rid of it, you know you can always trade it in for a little less. |
On a side note, I have a brand new '04 Mobius LSV on lot set up nicely for under $35k. If you are interested I could send some pics. I'm only 3-4 hours away from you.
(Message edited by Jon A on October 11, 2004)
|You definitely do better selling it yourself, however, if you do trade in, remember that you won't pay sales tax on the trade in value on the total price of your new boat. |
ie, if the new boat is 50K and your trade in is 30K, you only pay sales tax on 20K. Here where sales tax is 7%, that is 2,100 bucks less in sales tax so you have to figure that savings in when you trade in as well.
Please send me some pics to firstname.lastname@example.org and any other info on trade-in's.
|Dave are you sure about that? I was under the impresion the trade is just added to the down payment. Not a price reducer. If what you are saying is correct that is a good point to consider.|
|Dave is correct They net out the trade in value against the sales price to arrive at a the taxable amount. If you have a newer baot your trying to trade (lets say 30-40k value) it would be alot easier to just trade it in. Its harder to find a buyer on your own for something that much and the tax savings would be alot greater. Total opposite for a boat valued alot less. |
|Adam and Dave, |
Actually that tax law is being changed in most states. I know Arkansas just changed that law recently. Most people don't even know about it but since I'm a dealer, we have to stay on top of that kind of stuff. Who knows, it may stay how it is in some states though.
|I guess it is all state by state but that law still holds true here to the best of my knowledge. |
Also, here in GA, there is no sales tax on used boats or cars if being sold by a private party. Maybe that law has something to do with the law on trade ins as well.
(Message edited by Schmo on October 11, 2004)
|"I guess it is all state by state" |
Yes, it is all state by state, what other way would it be? The federal government only has the power on income tax.
|"Yes, it is all state by state, what other way would it be? The federal government only has the power on income tax." |
Ah, if it were only so...
The feds also have the power on medicare, FICA, estate, dividend, capital gains and a few other taxes. In addition, quite a few states and municipalities levy income taxes.
"The power to tax is the power to destroy."
Justice John Marshall
(Message edited by spoon on October 11, 2004)
|How does trade in work? If my boat is valued at $24k, how much would the trade in value be worth? |
|If you sell private party, you can still go through your dealer, which is what I did. Doing that, you still get the tax savings. |
Most trade value quotes on my old boat were 10-20% less than I figured I could sell it for myself.
|I am sure that Jon can speak to this more intelligently than myself, but most dealers are not real excited about getting trade in boats and thus try to make up for it with a higher selling price for the new boat tacked onto the low end trade in value. |
This may be escalated if you try to trade in an I/O to a strictly inboard dealer and lessened if you are trading in a X-brand boat to a dealer that carries that line.
Depends on how good of a negotiator you are. think of it like this on your trade. What is the max net amount I'm willing to pay to get into the boat? Both trade price and sales price are somewhat arbitrary numbers.
|Econ 101 test: Who sets the price, the buyer or the seller?|
|Its been a while but doesn't the market set the price. In other words something is only worth what another person is willing to pay for it. So your answer would be the buyer sets the price, but the person with the most information usually gets the best deal|
|You are right in the macro sense that supply and demand controls price (witness $54 bbl oil). Also right at the micro level, where the buyer determines the price.|
|Anybody how California handles taxes on trade ins? With the state tax at 7.75% that is a huge consideration. |
Seems strange to me. I sell boat to private buyer they pays sales tax. I buy new boat, I pay sales tax. State gets FULL sales tax on two transactions. Now if I trade in boat and dealer resells it they "new" buyer pays sales tax, but I only pay partial sales tax? Thus the state is missing out on a portion of the sales tax on my new boat purchase. Why would the state allow such a loop hole?
|They make the sales tax when your trade-in is sold to a buyer. If the dealer does his job right, it will be for more than allowed you at trade-in, thus netting the state MORE revenue than if they had taxed the trade.|
|"You are right in the macro sense that supply and demand controls price (witness $54 bbl oil)." |
$54 oil is NOT based solely on supply and demand. A big part of the problem is speculative investing from hedge funds that is driving the oil futures up and handcuffing OPEC from controlling the prices. There is a disconect between fair value "based on supply and demand" and the actual price at the present. Can you say bubble?
The only way to burst any 'bubble' is to decrease demand or flood the market. In the case you state, the 'supply' of greater fools is what needs to be reduced.
(Message edited by spoon on October 12, 2004)
|I don't think they discuss outside factors like that in ECO 101|