Lexus IS Forum banner

1 - 12 of 12 Posts

·
Registered
Joined
·
2,639 Posts
Discussion Starter #1
Let me ask you guys (and girls) a question. I got a 2001 IS with 15,500 miles. If I wanted to sell the carin late august, how much would I get? Tinted windows and titanium dash. Honestly, whats a fair market value for it ... and how much should I aim to get.


Thanks, I really appreciate it,
 

·
Registered
Joined
·
164 Posts
I asked my dealer the exact question last week. You're looking at about $25K on your trade. Might get a few thousand more on a private sale - you lose the sales tax credit tho. Hope this helps.
- Michael
 

·
Registered
Joined
·
349 Posts
Wow, member No. 2 with only 100+ posts!!!

By the way, my dealer said that you will not lose the whole tax payment you made on your 2001, but rather the difference in price between the 2001 and 2002. Or something along those lines. That could mean some substantial savings if true.

G.

[ July 17, 2001: Message edited by: Gennady ]

[ July 17, 2001: Message edited by: Gennady ]

[ July 18, 2001: Message edited by: Gennady ]
 

·
Registered
Joined
·
2,855 Posts
From what i understand, you get taxed like this:

if you sell your car privately for $27k, you get to pay tax on 27k.

If you trade in your car for $25k, and buy a $30k car, you get taxed for the difference, or $5k.

Thats because the dealer pays the tax on the trade in when they sell it later.

does that make sense?

[ July 18, 2001: Message edited by: IS JOE ]
 

·
Registered
Joined
·
306 Posts
Actually I think if you sell the car yourself, you pay taxes on $30k (the car you are buying), not the $27k. The buyer pays the taxes on the $27k (at least here in Texas).
 

·
Registered
Joined
·
36 Posts
There are no income tax implications for selling a car.

There are no sales tax implications for selling a car. Well, actually there are but those are almost always paid by the buyer.

If you trade a car to the dealer when buying a new car, some states you can deduct the price of the old car when figuring sales tax on the new car. Some states you can't. I know in Texas you CAN deduct the old car price. In California you CANNOT. It depends on the state laws.

In my experience in Texas you can do what they call a "trade thru" with the dealer. It works like this: You agree with another private party to sell your car to a certain price. You "trade in" the car to the dealer (and get the sales tax savings). The dealer then turns around and sells the car to the party you found for the amount you agreed on. You get the sales tax savings. The party buying your old car will pay sales tax on the car anyway (if it was a straight private party sale they would get taxed when they go to register the car and get a new title). In my experience the dealer will charge about $250 for this "service"- saves you headaches on the paperwork also. I have done this selling a BMW Z3 1.9 when buying a BMW M roadster (Houston dealer). Also Sewell Lexus in Dallas has said they would do the same thing for me when we sell my wife's Z3 2.8 when we get her 2002 IS300 in the coming months.

Hope this helps.
 

·
Registered
Joined
·
230 Posts
Originally posted by IS JOE:



If you trade in your car for $25k, and buy a $30k car, you get taxed for the difference, or $5k.

[ July 18, 2001: Message edited by: IS JOE ]

Incorrect.. Depending on what state you live.. In california.. you pay tax on $30K not $5K. Now.. Unless you LEASE the car you dont pay tax on anything.. the dealer cannot charge you tax on a car for trade in either.. then that would be a double hit for the seller and the buyer.. Illegal

yet like I said. It all depends on what state you live in.
 

·
Registered
Joined
·
164 Posts
Originally posted by IS JOE:
From what i understand, you get taxed like this:

if you sell your car privately for $27k, you get to pay tax on 27k.

If you trade in your car for $25k, and buy a $30k car, you get taxed for the difference, or $5k.

Thats because the dealer pays the tax on the trade in when they sell it later.

does that make sense?

[ July 18, 2001: Message edited by: IS JOE ]
In Washington state, the statement above works. I think it worked in Texas too.
 
1 - 12 of 12 Posts
About this Discussion
11 Replies
8 Participants
Hunt NXS
Lexus IS Forum
Community dedicated to Lexus IS Enthusiasts. Come in and enjoy our articles, galleries and information on aftermarket parts for the IS300, IS250, IS350.
Full Forum Listing
Top