Nick Posted February 16, 2005 Share Posted February 16, 2005 now if i sold the car privately and then went and paid 30k for the car, it cost me more than that 30k because i'm paying taxes on both the private sale and the 30k on the new car. You pay taxes when you buy a car, not when you sell it. It just happens to be a loophole in the law that allows you to deduct the cost of a trade-in from the taxable price of the new car. -Nick Link to comment Share on other sites More sharing options...
Nick Posted February 16, 2005 Share Posted February 16, 2005 i understand that the car is valued at 30k or so. but my out of pocket expense was 18k. this is what i paid taxes on. why would even say you paid 30 for the car if you didn't? Does it make you seem more wealthy? I just realized something. By your logic, I only paid $3000 for my Legacy! I put down $3000, and the bank paid the rest! WHat a bargain! I can't believe I got a new car as nice as a Legacy for only $3000! -Nick Link to comment Share on other sites More sharing options...
njsub Posted February 16, 2005 Author Share Posted February 16, 2005 no, if you financed the 18k, you're paying the 18k plus all interest/penalties, etc. so it's more. if i trade a car in, and pay the rest in cash, it's 18k out of my pocket. what's the car worth? 27-30k. what did i pay? 18k. you're welcome to your opinion, but don't tell me to change mine. Link to comment Share on other sites More sharing options...
Layman Posted February 16, 2005 Share Posted February 16, 2005 no, if you financed the 18k, you're paying the 18k plus all interest/penalties, etc. so it's more. if i trade a car in, and pay the rest in cash, it's 18k out of my pocket. what's the car worth? 27-30k. what did i pay? 18k. you're welcome to your opinion, but don't tell me to change mine. This isn't a matter of opinion. You're wrong, and your point of view will eventually become detrimental to your personal finances. But it's your perogative to maintain that point of view... Link to comment Share on other sites More sharing options...
frontrangeSubie Posted February 16, 2005 Share Posted February 16, 2005 no, if you financed the 18k, you're paying the 18k plus all interest/penalties, etc. so it's more. if i trade a car in, and pay the rest in cash, it's 18k out of my pocket. what's the car worth? 27-30k. what did i pay? 18k. you're welcome to your opinion, but don't tell me to change mine. Good Grief!! A class on Finance sounds like it's in order to me!! lol Link to comment Share on other sites More sharing options...
njsub Posted February 16, 2005 Author Share Posted February 16, 2005 tell you what, i promise that i won't come to you asking for a loan when my perogative creates problems for me. Link to comment Share on other sites More sharing options...
Epitaph Posted February 16, 2005 Share Posted February 16, 2005 Njsub...i hate to break it to you, but your kinda wrong here. Link to comment Share on other sites More sharing options...
OCDetails Posted February 16, 2005 Share Posted February 16, 2005 no, if you financed the 18k, you're paying the 18k plus all interest/penalties, etc. so it's more. if i trade a car in, and pay the rest in cash, it's 18k out of my pocket. what's the car worth? 27-30k. what did i pay? 18k. you're welcome to your opinion, but don't tell me to change mine. You paid $30K for the car. When you walked into the dealership the sticker had a number on it. You might have gotten it for a couple grand less than that, but let's say you paid $30 Kfor the sake of argument. You didn't have $30Kin cash to pay them, but you did have some of it. You gave them $12,000 worth of car and they found a bank to loan you the rest. On your paperwork it will show what the car cost minus the down payment (your trade in) and then plus tax/title/liscense. You didn't pay $18K for the car. You just have $18K left to pay. I paid $XXK for my car too. I brought in a down payment to knock the price down a bit. The bottom line that I financed isn't what I paid. Rather, its what I couldn't pay. That is the amount I got a loan for. If you are going around telling people that you only paid $18K for the car then you are making an inaccurate statement. To say that you financed $18K is much more accurate. You paid what you financed as well as what they gave you in trade. That is the bottom line and the easiest way to say it. _________________________________________ “Cleanliness becomes more important as godliness becomes more unlikely.” O C D E T A I L S . C O M OCDETAILS BLOG Link to comment Share on other sites More sharing options...
sde Posted February 16, 2005 Share Posted February 16, 2005 so true, the bank has to lend you the money before the dealer sells you the car. that would mean you first got a loan, and second paid the dealer 30k. the dealer is not the bank, but that can be confusing when they do everything for you. Link to comment Share on other sites More sharing options...
njsub Posted February 17, 2005 Author Share Posted February 17, 2005 guys, there's no bank in the picture. there's no finance or lease. i traded a car i owned in and paid cash for the rest. i own this car outright and paid 18k for it. bottom line. Link to comment Share on other sites More sharing options...
TAckhouse1 Posted February 17, 2005 Share Posted February 17, 2005 guys, there's no bank in the picture. there's no finance or lease. i traded a car i owned in and paid cash for the rest. i own this car outright and paid 18k for it. bottom line. You paid 18K plus the cost of your trade in. Your old car was worth money. Again lets say your Legacy cost $30k, and they gave you $12,000 for your old car as a trade in. So you net cost is then the remaining $18,000, but it dosen't mean that you only paid $18,000 for you car. It would be no different if you went and sold your old car your self, for $12,000. And then brought that $12,000 plus the $18,000 you already had, and used that to pay for the car. -Nick Link to comment Share on other sites More sharing options...
njsub Posted February 17, 2005 Author Share Posted February 17, 2005 what's my cost basis for the car? 18k. what's my tax liability based on? 18k. How much was the check i wrote? 18k. if it walks like a duck and quacks like a duck... Link to comment Share on other sites More sharing options...
OCDetails Posted February 17, 2005 Share Posted February 17, 2005 guys, there's no bank in the picture. there's no finance or lease. i traded a car i owned in and paid cash for the rest. i own this car outright and paid 18k for it. bottom line. So they gave you nothing for your car? There was no value on that car that was considered as your down payment? They paid you for the car you turned in. Then they immediately turned around and took the money back from you and applied it to the value of the car. I can't believe that you can't grasp this. You paid what you paid as well as what they gave you for the car. You didn't negotiate them down to $18,000 dollars. _________________________________________ “Cleanliness becomes more important as godliness becomes more unlikely.” O C D E T A I L S . C O M OCDETAILS BLOG Link to comment Share on other sites More sharing options...
rc0032 Posted February 17, 2005 Share Posted February 17, 2005 ... I can't believe that you can't grasp this...Im offended by this comment…you are insulting his intelligence Link to comment Share on other sites More sharing options...
OCDetails Posted February 17, 2005 Share Posted February 17, 2005 It should actually be insulting my intelligence. After all, I'm the one who isn't understanding why he thinks he only paid $18k for his car. If he believes that he talked the dealership down to that then that is some pretty fancy talking. Not just anybody can get a deal like 25 or 30 percent below invoice. _________________________________________ “Cleanliness becomes more important as godliness becomes more unlikely.” O C D E T A I L S . C O M OCDETAILS BLOG Link to comment Share on other sites More sharing options...
05SubieLegacy Posted February 17, 2005 Share Posted February 17, 2005 It should actually be insulting my intelligence. After all, I'm the one who isn't understanding why he thinks he only paid $18k for his car. If he believes that he talked the dealership down to that then that is some pretty fancy talking. Not just anybody can get a deal like 25 or 30 percent below invoice. I cant believe this thread has survived this long and that you are trying to edumacate him in understanding that he still paid the same amount of money as anyone else (give or take a couple grand - depending on your connections/negotiation skills, etc). But I am sure he appreciates the lesson. Out of curiosity, do you have a forum class on determining miles per gallon? I feel like I am always at the gas station! Feeling kinda funny... Reade Link to comment Share on other sites More sharing options...
frontrangeSubie Posted February 17, 2005 Share Posted February 17, 2005 guys, there's no bank in the picture. there's no finance or lease. i traded a car i owned in and paid cash for the rest. i own this car outright and paid 18k for it. bottom line. Well....why didn't you just give the dealer 18K for your new Legacy and KEEP your old car? lol Link to comment Share on other sites More sharing options...
OCDetails Posted February 17, 2005 Share Posted February 17, 2005 Well....why didn't you just give the dealer 18K for your new Legacy and KEEP your old car? lol EXACTLY! _________________________________________ “Cleanliness becomes more important as godliness becomes more unlikely.” O C D E T A I L S . C O M OCDETAILS BLOG Link to comment Share on other sites More sharing options...
05SubieLegacy Posted February 17, 2005 Share Posted February 17, 2005 "Because silly, the car is actually 30K which is why i had to let go of my 12K car. It still onl cost me 18K since i dont believe in placing any monetary value on the items that i already own." DUH! Reade Link to comment Share on other sites More sharing options...
kage Posted February 17, 2005 Share Posted February 17, 2005 Tell you what, I'll give you $20,000 for it right now. You'll "make" $2,000. Sounds good right? Let me know, because I'm completely serious. Link to comment Share on other sites More sharing options...
sde Posted February 17, 2005 Share Posted February 17, 2005 hey njsub, .. I WANT TO DO BUSINESS WITH YOU!!! I'll give you $1000.00, .. and all you have to give me in return is $1- ( and your LGT ) Sweet huh? you will make $999.00 just for the transaction. PM me with your addy so I can come pay you. Link to comment Share on other sites More sharing options...
05SubieLegacy Posted February 17, 2005 Share Posted February 17, 2005 Dude, I wouldnt sell for anything less than $22,000. You make $4,000 and you have $26,000 to spend on a new one. Take that $26,000 and get another great deal on a LGT for $18,000 and you just made $8,000!!! Then you have some play money for mods that could easily land you a "phat" setup here: http://www.xcceleration.com/legacy-turbo.stagekit3.htm And a little left over to put some 12s in the trunk! Sorry... i coudnt help myself. Reade Link to comment Share on other sites More sharing options...
godwhomismike Posted February 18, 2005 Share Posted February 18, 2005 This thread is causing me to have a brain hemorrhage - please!!!! Just go talk to a dealer about a trade up to a Outback Sedan - simple enough - or a Forester XT - which may actually be an even trade. - Mike Link to comment Share on other sites More sharing options...
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