Last post on Nov 20, 2013 at 9:45 AM
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Car Buying, Car Selling
#3032 of 3350 Re: Trade in ? [billy3554]
Nov 19, 2012 (6:28 am)
Of course, it is usually good to have the trade valued on the high side as that saves a bit on sales tax.
Well, not to pick nits, but just to be clear, as long as the difference is the same, the tax will be the same. So if I pay $20k for the new car and get $5k for my trade, I'll pay tax on $15k. If they only value my trade at $3k but I pay $18k for the new car, I still pay tax on $15k. This is in NJ. I'm not sure about other states.
#3033 of 3350 Re: Trade in ? [qbrozen]
Nov 19, 2012 (4:14 pm)
same in Pa.Wonder what state he is refering to?
#3034 of 3350 Re: Trade in ? [qbrozen]
Nov 20, 2012 (12:16 pm)
Same here in Florida and my home state of NY. The only difference that makes a difference is the difference.
#3035 of 3350 Re: Trade in ? [koctailz]
Nov 21, 2012 (7:58 am)
Thinking about it, we probably should be happy so many people purchase so many things in the F&I office at inflated prices. I suppose that allows those of us who say no to the F&I offerings achieve a better price on the vehicles we purchase. If dealers did not make so much back end profit, they might not be so willing to discount the front end selling price.
#3036 of 3350 Affiliate/Friends & Family Discounts
Dec 01, 2012 (10:06 pm)
I've just started car shopping and I'm curious about how discount programs for friends/family/business partners work. I work for a very large company that has deals set up for us on a lot of car brands. I went to look at a Dodge Dart today, which could be covered under Affiliate Rewards (1% discount off factory invoice).
If I assume the Edmunds True Market Value is accurate, it says I should expect to pay about 1.9% above invoice.
1) Does Chrysler give an additional payment to the dealer when they sell me a vehicle under this program to help them recover some lost profit? Or is a few low/no profit sales part of doing business (of course there is still financing, dealer options, service, repairs, etc for them down the line).
2) What about the salesperson? The guy who helped me out today seemed great. If I end up buying from him I would hope he earns a commission on the sale.
I figure it's always good to understand people's financial motives in situations like this!
#3037 of 3350 commision
Dec 01, 2012 (10:49 pm)
salesman always earn some money on a sale-how much depends on the total profit to the dealership-but the dealership will pay something to their employee
#3038 of 3350 Re: Affiliate/Friends & Family Discounts [maracle]
Dec 02, 2012 (9:39 am)
I bought an Explorer last year using the program they offer for shareholders. It was simple and painless. I found the car I wanted, called and asked if they would do X plan on it and arranged to buy it.
The dealer is paid a fixed amount by Ford to process the sale. There's little time spent by the dealer and salesperson in negotiating. The sales counts towards their allocation. Other manufacturers do the same thing.
If you are going to use one of these programs, you really should be up front about it and let the salesperson know. It's not fair to him/her to spend 4 hours with you on what might be a $50 commission.
#3039 of 3350 Re: Trade in ? [jproc]
Dec 05, 2012 (1:29 pm)
Wonder what state he is refering to?
Little late to the party, but he could've been talking about CA.
If the new car is 20k and you get 2k for your trade in, you pay sales tax on 20k
If the new car is 22k and you get 4k for your trade in, you pay sales tax on 22k.