stallion114

Ok,
I'm going to pick up a 2008 srt viper tomorrow morning. I have my 2012 coupe for sale and had an offer of 30k from a man who owns a dealership. Also have an offer for 33k that the guy said he will be by tomorrow but I have doubts for some reason that he will no show.

My question is would it be possible to purchase the viper from the seller and then immediately sell to the dealer that wants my Vette, and then trade my c6 for the viper and pay the difference?
Reason being would be to lower my sales tax burden. This would close the sale for me and essentially be the equivalent of getting my asking price.

I hope that made sense.

not08crmanymore

well,your dealer is there to make money so i doubt he'll sell it for what he bought it for,number 1.Number 2) you can't sell the VIPER until the title is in your name unless the laws in your state are different then NY. You won't technically own it till the DMV has a title with your name on it,therefore,you can't sell what you don't own. and you can't do what you're describing anyway.

stallion114

so even if I buy the viper and get the viper title I can't sell until I register it? I was hoping I could do it with just a bill of sale.
I figure the dealer has an incentive to buy the viper and sell right back to me bc he wants my Vette for 30 and is exactly what he would end up with.

Example
I buy viper for 50k
Sell viper to dealer for 50k
I then trade my Vette for the viper I just sold (Vette at 30k trade value) and pay the dealer 20k.

Viper seller gets the agreed upon amount
Dealer gets my Vette for 30k
I save on tax.

I figured it was a long shot but was hopeful anyway given the potential buyer of my Vette happens to own a dealership.

Dif

Yes it makes sense but, ....
you need the Viper Owner to sell it to the Dealer.
Then, the Dealer sells the Viper to you and takes your trade plus $$$.
The Dealer should be able to tell you exactly what you need to know.

voodoochikin04

Ding ding ding ^^^....

Dealer needs to acquire the viper from the seller....then sell to you with a trade in on your vette. That will allow you to only pay taxes on the cash you paid in for the deal. Hindrance being that the dealer tries to hit you somehow while having the upper hand of having the viper you want. Good luck!!

EBvette02

i did this with my old vette. I bought a new one, traded in my old one, with the stipulation that he sell it to my friend for x amount. My friend had to pay about 300 in dealer fees.

Don-Vette

I agree.

jimmie jam

I ordered a new car from dealer X. Dealer X had a relationship with dealer Y who wanted one of my cars. Dealer X took my car in "trade" and "sold" it to dealer Y for the agreed upon price that I struck with dealer Y. Dealer X never saw or took delivery of my "trade" because I shipped it to Y. Dealer Y gave Dealer X that amount which was credited towards my new car. I saved $2,000 in sales tax because of my "trade". Sounds complicated but it's real simple. The key was the trust I have for dealer X and the excellent reputation dealer Y had and the important fact that they both had a relationship and have done this is the past many times. FWIW.

not08crmanymore

yes,the only way is to have the viper guy sell it to the dealer and so on.Of,dealers don't work for free so it'll cost you more then the agreed price with the viper owner,more then likely.Nobody works for free.

mcandrew67

the dealer is not going to sell your the Viper for what he paid you for it, he is going to mark it up a few thousand so you will be right back where you were before.

unixcorn

Call your state's DMV or tax entity. In Missouri, when you sell a car you have a tax credit for that day only - or so I was told. So you should be able to make both deals and then go to the DMV and still take advantage of your "trade".
If I am wrong, and that happens a lot, then I would simply ask the dealer if the would help you get the deal done. Even if they want $500 for the paperwork, it would still be worth it to you. I am guessing they would say sure.

stallion114

I'm going to check that tax credit right now. That would we awesome.

Also as far as the dealer buying mine, he is buying as a personal car but happens to own a dealership. It's not that I am walking into his dealership to sell.

Landru

A genuine test of character.

Rebel Yell

Ask the dealer if he is going to charge you "document fees." Depending on the amount of fees, it may not be worth the trouble.

Amicon

Its called Jumping titles. ITs a common thing when someone wants to buy to resell. I have done this before. I bought my Bike from a guy who bought the bike five months earlier from another party. They sold the bike to the guy I bought it from and did not put the sale date or Odometer on the title or Bill of Sale. ON the day I bought it,We filled out the date and odometer on the title and Bill of sale.

I took the Title to the DMV where they issued a title in my name and registered it. I was buying it from the first owner while giving my money to the "hidden" second owner.

Its not legal but the DMV has no idea who the second owner was as there was no record of sale.

23/C8Z

not likely. contingency of the deal should be a flat fee, say $400 for paperwork bs something along those lines. dealer will make this work but the viper owner will need convincing as he will have to wait 10-14 days for a check most likely.

dealer will probably sell you the viper "as is" also..

nice thing about this is it can save you some cash right now if you finance some of the viper through the dealer. (say invest $20k somewhere else, like a "forced" savings plan)

if you can swing the payment (disciplined enough not to burden yourself with other obligations, actually make sure you invest the saved lump sum)

just a thought

good luck..

franman69

This is exactly how I bought my current vette from Tommy in NH. PO sold traded into dealer on his new vette with the agreement that they would sell to me for the agreed price. No worries and he saved on his sales tax which motivated him to lower my price by another grand.

WadeH

This is a recipe for paying far more tax.

You would technically pay sales tax on the first purchase for 50k...and then again on the 20K above the value of your trade when you buy it the second time from the dealer.

I keep trying to think of a way that this could work, but haven't got there.

I did something similar a few years ago (when I bought my current Vetter, actually). I had a buyer for my trade-in, but wanted to save on the sales tax the same way that you do. My dealer did what they called a "courtesy trade". Basically, they took my old car in trade and gave me exactly what my buyer was paying. They then immediately sold my trade to my buyer for that price, plus a $250 document fee.

The difference between this and what you are trying to do is that my new car came from the dealer. In your case, the car you want is owned by a private party and not a dealer (in my state, the sales tax break is something that only applies to dealer trades). I am pretty sure that, since there are two private party transactions involved in your deal, that your state will want the full sales tax from both of them (50K on the Viper and 30K on the Vette).

Just my two cents, and I hope that you find a better way.

cerino2000

Definitely a question for the dealership invoved. I don't see anythin illegal about it just a matter of whether or not the dealership is willing to do the deal and not charge you something that makes it unfavorable.

phileaglesfan

When I first read your post I was thinking "Just check your state laws". In Utah, they don't care who you bought or sell cars to but you get to reduce the tax on the new vehicle by the cost of the car you sold.

Example
You buy Viper for $50k
You sell Corvette for $30k
You pay tax on $20k when you register the Viper.

Or you sell Corvette first, then buy the Viper.

It varies by state so you definitely need to check.

Forget about the idea you have as that is fraud which you could get nailed for in the end.

Salesmen around here like to tell their customers that the tax break is one of the benefits of buying/selling from a dealer but you never will see any additional money as they'll work it out in the deal.