Quote:
Originally Posted by JerseyM3
Thanks for the advice. I definitely will make sure she's all clean and spiffy.
With regards to sales tax, if I sell it, who pays it? My car is financed 5 years, I'll have it 3 come July. Definitely not going to sell it for more than MSRP but with only 13k miles I have a little equity between what the market shows and my payoff.
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The buyer always pays the sales tax. Just as if he was buying from a dealer. Selling a high dollar car is definitely more challenging than selling one worth $10k or $15k. And selling when you still have a loan and don’t have the title in hand adds additional complications. Most buyers are reluctant to hand over a bunch of cash without getting the physical title in exchange. If you decide to sell privately and you have the means to pay off the loan ahead of time and get the title in your possession that will make your potential buyers more likely to make the deal.
In many states the trade-in value the dealer allows is deducted from the sales price of the new car, thus reducing the sales tax due on the new car. This serves to increase the effective trade-in price offered.
If you sell privately price your car correctly for the market. Just like when selling real estate. Overpricing and thinking that sticking “or best offer” in the ad doesn’t help you sell for more money. It just prevents potential buyers from bothering with looking at your car.