Trade-In Value on Mustang Purchase

[Rocket Man]

I considered it but due to #1 the hassle, and #2 the loss of the trade-in tax exemption, I typically go the trade-in route with the dealer.

What loss of trade in tax exemption? In MD you pay tax on the difference between sales price minus your trade.

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[samson]

What loss of trade in tax exemption? In MD you pay tax on the difference between sales price minus your trade.

Yes, but if you sell it instead of trading it you lose that tax benefit. You would pay the excise tax on the full cost of the new car.

 

[Rocket Man]

true, i guess i didn't understand what you were saying

 

[young at heart]

The dealer couldn’t care any less what supporting evidence of trade in value a customer brings in. In fact, out of your earshot they’ll probably get a good laugh out of it sharing with each other. They’ll make you an offer which may be high (doubtful), low or in between. You can accept it or counter and he’ll likely do the same. It’ll go back and forth like this until someone tires of it or the deal blows up. It’s just good old negotiating. But don’t waste your time and breath trying to justify your reasoning to him. It’d be like trying to pick a bar fight with Mike Tyson.

 

[samson]

The dealer couldn’t care any less what supporting evidence of trade in value a customer brings in. In fact, out of your earshot they’ll probably get a good laugh out of it sharing with each other. They’ll make you an offer which may be high (doubtful), low or in between. You can accept it or counter and he’ll likely do the same. It’ll go back and forth like this until someone tires of it or the deal blows up. It’s just good old negotiating. But don’t waste your time and breath trying to justify your reasoning to him. It’d be like trying to pick a bar fight with Mike Tyson.

I don't disagree entirely. The quotes are more to help me decide what I'm willing to take. But in this confrontation I tend to think the buyer is closer to Tyson than the seller. After all, I can simply walk away with no financial obligation at all to the car. The dealer on the other hand, is now stuck with a car that may take many months to sell to the next buyer and they get to pay interest the entire time. Let's face it, Mustangs aren't exactly flying off the lots. This dealer, which is a small rural dealer, has eight in stock. Several of these have been sitting there for months.

 

[young at heart]

I don't disagree entirely. The quotes are more to help me decide what I'm willing to take. But in this confrontation I tend to think the buyer is closer to Tyson than the seller. After all, I can simply walk away with no financial obligation at all to the car. The dealer on the other hand, is now stuck with a car that may take many months to sell to the next buyer and they get to pay interest the entire time. Let's face it, Mustangs aren't exactly flying off the lots. This dealer, which is a small rural dealer, has eight in stock. Several of these have been sitting there for months.

That being the case then you may indeed be the alpha party in the negotiation. Hopefully it works out in your favor!

And you’re right. Often “confrontation“ is a good way to describe the process.

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