"running it through a dealer", cross-state purchase tips?
Grant Lenahan
glenahan at vfemail.net
Thu May 14 13:24:43 PDT 2009
Fairly normal. He pays tax on the difference between the new car's price
and the trade in allowance.
I've done it. The problem is, dealers usually want a fee. That can
erase the tax savings.
Grant
Brett Dikeman wrote:
> I'm in negotiations for buying a used car out-of-state. The seller
> keeps mumbling something about wanting to "run it through as a trade",
> which seems to encompass him trading in the car to the dealer, then
> the dealer selling it to me immediately. The seller gets some sort of
> tax credit out of this in his state (MN). I'm not crazy about it from
> the get-go, as it'll probably look weird on a carfax/autocheck report
> down the line, and make things more complicated than they already are
> (I'm in MA, where they do not recognize temp plates, will not issue
> temp plates, and require the title to issue a registration.)
>
> Is this normal? Sketchy? How can it go wrong? Is this something
> where a contract is written up between the three parties? The most
> obvious scenario to me is that the dealer turns around to me and says
> "gee, that's a nice car, we think we're not going to give it to you
> unless you give us another 2k", or someone on the staff buys the car
> from them, or they think they can sell it for more to someone else,
> etc.
>
> Any other tips on cross-state buying? What should I watch for? I
> haven't found much except general comments along the lines of "do a
> sale agreement, fedex check, get title fedex'd". Some leinholders
> apparently have forms available to have the title sent elsewhere when
> the loan is paid off, etc.
>
> Brett
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