Sell now or trade in later for Raptor R?

[Boss Hoss]

I waited for Ford to come out with the Big Boy even from the day I first picked up my 1st Gen Raptor! Was highly modified with most work being done by RPG. Go back and read my old posts but got a TRX this week gave up my 2020 oil burner. It is insane to say the least. Ford missed the party at least so far. The Raptor R will not have the ringy dingy motor but who knows what the final specs will be. Getting closer though!

 

[Syberspace]

Is anyone considering the tax savings on a trade? If you sell your current vehicle outright and buy new you will pay tax on the full price of the new vehicle. If you trade, you pay tax on the difference. At least in the state of PA and am I sure other states. When trading ~$70k vehicles... it has an impact.
Just a consideration if you sell outright... the value proposition may be similar even if offered less on a trade in the future.
Something to consider...

Example:
New vehicle cost: $80k
Sell outright for $70K and buy new $80k vehicle. With 6% sales tax (minus admin costs...) you will pay $14,800
Trade vehicle at $66K and buy new $80k vehicle. With 6% sales tax (minus admin costs,,,) you will pay $14,840
These both assume your vehicle is paid off and you use the full value on the new vehicle. Same principal applies if you owe... as far as tax goes, just different bottom line.

If a dealer buys your vehicle, you can use that as a future trade at that dealer, I believe.

 

[melvimbe]

Is anyone considering the tax savings on a trade? If you sell your current vehicle outright and buy new you will pay tax on the full price of the new vehicle. If you trade, you pay tax on the difference. At least in the state of PA and am I sure other states. When trading ~$70k vehicles... it has an impact.
Just a consideration if you sell outright... the value proposition may be similar even if offered less on a trade in the future.
Something to consider...

Example:
New vehicle cost: $80k
Sell outright for $70K and buy new $80k vehicle. With 6% sales tax (minus admin costs...) you will pay $14,800
Trade vehicle at $66K and buy new $80k vehicle. With 6% sales tax (minus admin costs,,,) you will pay $14,840
These both assume your vehicle is paid off and you use the full value on the new vehicle. Same principal applies if you owe... as far as tax goes, just different bottom line.

The amount you owe on your current vehicle doesn't apply for the tax amount. All it means is that if, for example, you owe $30k on your current vehicle, you can take on that amount + trade difference + tax + admin fees to the new loan.

If a dealer buys your vehicle, you can use that as a future trade at that dealer, I believe.

I think this varies from state to state. This question came up recently and checking out the states law on this showed that you must sell and buy in a single transaction. In other words, you can't accrue sales tax credits.

 

[Cool Hand Luke]

It works the same in Texas. In my case I’m leasing the car that replaced my Raptor. So my sales tax bill was less than if I purchased the replacement car instead of leasing it.

 

[GCATX]

Since prices are trending up,up,up...why would you sell now and wait on something later? Your 68k sitting in the bank for months on end will only buy you something that's valued at 68k today.

Large quantities of money sitting in the bank right now is not a good idea.

Just my .02.

 

[greatone99]

givemethe vin offered me 72900,for a 2019 with 4500 miles .kbb has it at 79-82 private sale .the market is rid. I paid 68000 ,2 years ago ,fully loaded super crew .