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Discussion Starter #1
Well, we almost made something good happen (See "Maxie Price wants your business"), but sometimes the best laid plans go astray.

Buy HEY!!!! Why wouldn't this work with the next Vendor Member that can't quite make the deal on a Brand New Z06 because the buyer needs that extra $1000 or $2000 on his trade? It would. I will step right in so the trade is not a factor anymore.

If it's a Red/Red 2001 Z06 with 12,000 miles max, and in excellent condition, let me help you make it happen. I have a verbal offer on my C-4, and should receive a deposit by tomorrow, with the actual sale closing in 3-4 weeks, so I'm not ready until that happens, but please keep this in mind for that new sale that isn't happening because of the trade-in dollars not quite making it.

E-mail me direct at [email protected] -or-
Call me at (941)549-3876

Thanks.

Steve Nix
 
J

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Steve,

Are you proposing doing an " In and out" at a supporting vendors dealership on a guy who might want to buy a 2002 zo6

The way..I'm reading your post..you want to pay 2 to 3 grand more than the dealer is offereing..and you want to pay the sales tax on that purchase so the gentlemen buying a new car gets that benefit as well..

Depending on where the person lives obviously..the sales tax rate is different..

but using a number like 37 [email protected] 6% ...the person selling the car gets 37 thousand for the car and 2200 in sales tax savings on their new ride..bringing them to 39 thousand two hundred..

Your suggesting..if I'm reading this right..that since you have to pay the sales tax anyway..why not just give that added bonus to the gentlemen selling his car to you..

Plus the vendor salesperson would recieve a certain amount..maybe a few hundred dollars for doing the in and out?

Again..I just threw out the number 37 as something I thought you were mentioning..(nobody flame me..I was using it arbitraily (sp)

I apologize if I misquoted you on prices....but the sales tax benefit to the seller is a win win for everyone involved..You have to pay that anyway so you might as well give the savings to the gentlemen giving you such a great deal on a fantastic car..

Dont buy from ebay..try this..

Good luck..

I think if this would work..that would be a big win win for the concept of value to these forums..for both vendors..(they don't really want the trade ins)

The seller..Pay less to move to a newer model more easily..

The buyer..gets a good deal..

I'm happy with my car but the factors involved seem logical..just be available for delivery/trade day.

Is there something I'm missing that would make this not work?

I think its win win..
 

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The tax money goes to the state, not to the seller.

Other than that, he's got a good idea. Dealers always lowball ya on trade-in ($5k less on 01 Z06's sometimes:eek:), so why not offer to buy a car outright for a couple thousand more than the dealer is offering? Really nothing new here, other than using the dealer as an outlet for the trade-in. I can't see too many dealers cooperating since they lose the profit on the trade-in, but maybe I'm wrong there.
 
J

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Yes the money goes to the state..but if done as an "IN and Out" at the dealership..the sales tax savings for the person buying the new car is substantial..

Why would you want to sell your car...and get no tax benefit.. on new vehicle..

The one benefit of trading a car in..is that you save on new car sales tax..for the amount of the trade..

If the person..has the dealer do the paperwork..for a few hundred dollars..the person buying the used zo6 pays what he is supposed to pay..and the dealer sells the new car with a happy new car customer..(makes a few dollars on used car with no cash outlay)

Most importantly..the person buying the new zo6..saves in this theorical sale ...the tax he doesn't have to pay on 37 grand..

The tax consequence on the new zo6 purchase is 37 grand minus..48 grand?ONLY 11 thousand dollars thats applicable to sales tax? instead of the total 48 grand. (arbitary price of new 2002 ZO6)

Doesn't this make sense?


I am just trying to help..Please excuse me if I am wrong..
 

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In Georgia, if a buyer buys a car from a private seller, there is no sales tax. If they buy a car from a dealer, there is sales tax. If a buyer has a trade-in, the sales tax is based on the difference in value between the two cars if it is a trade-up.

With that said, it might be hard to do an in-out in Georgia because the buyer of the pre-owned car will have to pay sales tax, while the buyer of the new car only pays a fraction of the tax. There might have to be some price calculating for the two buyers to share in the sales tax burden.

I don't know how tax works when selling to an out-of-state buyer. Maybe the buyer's state collects tax upon registration?

I'd like to hear from Rick Daniel, from Georgia, who might be able to clear up any of my errors.

I would like to see this idea work. It really would be a win-win for both buyers, and the dealers get to sell a new car :)
 

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Discussion Starter #6
Yes!

JB -

This is EXACTLY what I was trying to accomplish for Mark Dickie with Rick at Maxie Price as the dealership in the "We want you business" thread.

Come on guys & girls - we can get a lot more people on this site and sell a lot more Z06's if we work together.

I did not spell it out quite as well to Mark, but he was considering trading it in anyway - where he would only have to pay tax on the difference. I was offering to pay $2000 to $3000 over the dealer trade figure, and asked Rick to handle the paperwork on my purchase from Mark for an additional $500 fee.

This sort of transaction helps everyone. The seller of the "old" car gets $2K-$3K more, and only pays tax on the difference, the buyer buys way under retail, and the dealer makes a profit on both the trade in (without having to make the sale or pay a salesperson) and the sale of the new car!

Sometimes you have to be creative if you can't just go write a check.

I love it.

Steve Nix
 
J

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Heres the beauty of the whole process..

Usually the dealers offer about 6 to 10% less than the market value of the car for the cost of inventory and profit..(for selling used cars)

Steves saying..if I read this right..

Lets say.a zo6 owner wants to buy a 2002..and is offered 34 or 35 grand by the car salesperson..


Steve is saying he wants to give 3 grand more than the dealer is offering for the convenience of a trade in..plus he is offering the trade in tax benefit to the person trading in the car.. In my state that would be 6% of 37 grand..or 2200 dollars..so in effect..the person selling gets three grand extra and 2200 extra..so its like 5200 more than he would if he just traded the car in ..in effect selling the car for 39 thousand dollars...Steve..thats a cool idea
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The trade in allows a person buying the new car to avoid the sales tax on a portion of the NEW PURCHASE..

Thats how the dealers get people to accept the lower profit by trading a car in..

Because in the end..usually the trade in plus the tax benefit..is equal or close..to market value by selling by yourself but usually has extra hassle. involved...

Steve wants to pay an additional two or three grand to make the trade in process even more paletable..

Plus he knows whose zo6 he is getting..

I believe everyone wins..including the dealer ..who for 5 minutes or so of paperwork..gets a few hundred dollars for doing the paperwork transfer..(it doesn't cost the dealer anything for holding stock in inventory..) I don't think the dealers prefer trade ins because the market is flooded..with cars.

Steve has to pay the taxes anyway...
so why not give that benefit to the person buying a new car?

even if the numbers for the selling price shift around a bit..and I don't want to get involved with that..as thats between the buyer and the seller....the concept is still sound..logical.and profitable..for everyone involved..

Do you guys agree?

I see this..as a win win..

Whats the down side?
 
J

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I didn't think 500 dollars is necessary to the dealer but what the heck!

I thought a few hundred..but at 500..its pure profit to the dealer..

They have no cost of inventory and the cash flow is immediate..

The dealers should love it..

Everybody wins!

Geez..its such a great idea..maybe next summer....if anyone wants to do something similiar..let me know a few months ahead of time..

Ill fly down and give you the cash! bang! done..drive home in a very nice zo6.
 
J

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I'm not sure if this type of thing pisses off site vendors..so please accept

Please accept my apologies if I have said somthing that goes against what you as supporting vendors might want..

I got enthusiastic about the idea because it looked like a win-win..

Sell more new cars at a good price....guys get the new cars they want at the cash out lay they want....guys who want the used cars save a few bucks by getting the car they want....and the dealer makes a profit on the new car transaction..and the used car transaction. All in one shot...

So if I'm treading on dealers toes...or pissing off guys trying to sell their prized possesions at higher prices on their own for a new one..ACCEPT MY APOLOGY..I THINK EVERYONE WINS WITH THIS..

I don't see the down side..LOL

I just get a kick out of the idea..of everyone winning..
 

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IN/OUT

We do in and outs all the time. Huge number of GM employees
in the area, who sell their own trades for more than I can give
them, and for less than a buyer can get the same vehicle off
of a dealer's lot. It's a win/win, and by doing this for a very
nominal charge ($89.00), both our customer wins by paying
lower sales tax, and the used buyer wins with a lower purchage
price.

Have never done same without both people showing up at the
dealership, and would be a little hesitant if both parties are
not present. Reason being, the used vehicle deal has to happen
prior to the new vehicle deal. We buy the vehicle from seller,
and then turn right around and resell it to the new buyer of the
used vehicle for the same amount. The used vehicle then
qualifies as a tradein for tax purposes.

Confusing ????
 
J

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Bob..thats not confusing at all..

Hell with notification ahead of time..a credit card or wire transfer up front for a non refundable deposit and a planned trip for a day ahead of delivery.. to avoid someone being nervous and everyone is good to go..


I think this is what steve is talking about.

Steve..your looking for a red 2001 zo6 with mod/red interior? Are you flexible on the interior? You want one with around 11K miles..right?




Everybody wins..
 

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Discussion Starter #13
Typical Situation.

Let's say an owner of a 2001 Z06 wants to buy a 2002 that lists for $50,000 for $48,000. Let's just say that the dealer offers him $34,000 for his trade. (Let's not argue prices, let's just see how it works out)

If he WANTS the 2002, he takes it, and pays sales tax on the difference. Let's just say the tax rate is 6%. $48,000 - $34,000 = $14,000 difference x .06 = $840 in sales tax + the $14,000 difference = $14,840 TOTAL cost.

A buyer (Steve) that wants the used 2001 car, says he'll pay $37,000 for it, and he'll pay the dealer (Maxie Price) $500 to handle the transaction. The seller of the 2001 (Mark) gets a trade credit of $37,000 and pays tax on the difference. $48,000 purchase price - $37,000 trade = $11,000 x .06 = $660 in sales tax + the difference = $11,660 TOTAL cost. That is $3180 in SAVINGS to the buyer of the 2002 Z06 (Which is BETTER than making $3180 more at your job to pay the difference, because if you pay $3180 more, you are paying in after-tax dollars).

The buyer of the 2001 pays $37,500, and pays tax on the whole $37,000 x .06 = 2,220 or at total of $39,220 (But still better than, say $39,000 + .06 tax ($2340) or a total of $41,340. So, the buyer of the 2001 saves $2120.

The Dealer, gets the 2002 sale that he might not have gotten if the buyer resisted the low trade in figure of $34,000, and also makes a $500 profit on the "sale" of the 2001 WITHOUT having to prepare it for the lot, advertize it, and pay a salesman's commission, pay any carrying costs until it is sold.

The dealer, of course - if they KNOW they can get the car for $34,000 will do so, because they can sell it for $39,000 + or -. This only works if the dealer wants to make the 2002, and is meeting resistance from the buyer of the 2002 on the trade in value, or doesn't really want the trade.

Most dealerships separate the used and new car departments. The new car section ONLY wants to sell new cars. The used car section wants to STEAL the trade in at a low price, so it can show more profit.

Typically, a dealership will make more % profit from the used car portion, but SERVICE can be the largest money maker. HOWEVER, none of this works for them unless they can get the BIG NUMBERS in the new cars to begin with. No new car sales, no service.

If I'm wrong, show me where.

Steve Nix
 
J

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Sounds like a big win STeve..want to buy a very nice..lol A4/3:15/z51/active handling C5 with 21K miles.. for 27. 500 LOL (I'm kidding of course) I know you want a zo6..

but your right..everyone wins..maybe bob bendix does this in and out stuff for 89 dollars..so your very well off...there too..

Good luck to you STeve..I like the thought process you have on this..very cool..

I bet you get that red zo6..(not sure about the mod red part but you could always add portions of that later..if you like)

Thanks for the exercise..

I hope someone looking to sell a nice zo6 sees this post..

JB
 

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Discussion Starter #15
JB

Oh, I'm such a big talker. I can't do anything until I sell my '92. I want a red/red, but when my car gets sold, I'll be more flexible I'm sure. Your C-5 sounds nice, but I am sold on the Z06. I might have ONE opportunity coming up where the price is so good I might even take a WHITE one. Nothing against white, as my '92 is white. But the color has been discontinued, and this could well me my last Vette. I'm 54 years old, and have owned my last one since '94.

GO Z06'ers!!!!!!

I love it.

Steve Nix
 
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