Trade in clarification> Florida
Thread Starter
Race Director
Joined: Oct 1999
Posts: 17,710
Likes: 1,219
From: Phila PA, Bonita Springs FL
Trade in clarification> Florida
Want to trade in my C8 and order a new one..
I can pre trade and turn it in now, or, when it gets delivered in a few months.
Will use "round" numbers for the example.....
New car is $85k, trade is worth $75k
I assume I pay the difference of $10k and pay tax on that amount....
Dealer down here (Florida) says this:
1. We can take you car now, and apply the $75k but I would have to pay tax on the full price ($85k) when the car comes in
vs
2. Trade the car when the new one comes in, and they will value my trade at that time, and then pay tax on the difference..
(They will not hold or guarantee the trade in value, I'm basically at their mercy...)
I've always pre traded cars to lock in the agreed value, and paid the tax on the difference when my ordered car came in.
Can dealers pre-trade in Florida, or are we missing a beat here....?
I can pre trade and turn it in now, or, when it gets delivered in a few months.
Will use "round" numbers for the example.....
New car is $85k, trade is worth $75k
I assume I pay the difference of $10k and pay tax on that amount....
Dealer down here (Florida) says this:
1. We can take you car now, and apply the $75k but I would have to pay tax on the full price ($85k) when the car comes in
vs
2. Trade the car when the new one comes in, and they will value my trade at that time, and then pay tax on the difference..
(They will not hold or guarantee the trade in value, I'm basically at their mercy...)
I've always pre traded cars to lock in the agreed value, and paid the tax on the difference when my ordered car came in.
Can dealers pre-trade in Florida, or are we missing a beat here....?
Last edited by YO-EL; Aug 31, 2024 at 10:04 AM.
Racer
Joined: Jul 2007
Posts: 386
Likes: 88
Lived in Florida since 1978 but moved out of state over a year ago. I have bought several cars in Florida over that time. After the agreed on price and trade, only paid taxes on the difference. So your new $85k car vs your $75k trade would pay the tax amount of the difference of $10k. Maybe time to find a different dealer.
Thread Starter
Race Director
Joined: Oct 1999
Posts: 17,710
Likes: 1,219
From: Phila PA, Bonita Springs FL
Melting Slicks
Joined: Aug 2018
Posts: 2,015
Likes: 1,592
From: Clermont, Florida
You are asking about two different types of transactions. If you trade the car in without buying another car the same day you are basically selling them your used car and lose the tax incentive. If you trade in your car the day you purchase the new one you would only pay tax on the difference. It only takes two months to get the new car and the value of the used car should not change hardly at all in that time. Good luck with the course you choose.
Burning Brakes
Joined: Oct 2018
Posts: 985
Likes: 761
From: Monticello, AR
2024 C8 of the Year Finalist - Unmodified
In my state you pay the tax on the difference, but you have to buy the replacement within 60 days of the sale of the first one. I don't see that rule for Florida so it shouldn't matter when you sell your car to them, but I could be wrong about that too
Le Mans Master
Joined: Feb 2005
Posts: 6,918
Likes: 1,441
From: Any City USA
Want to trade in my C8 and order a new one..
I can pre trade and turn it in now, or, when it gets delivered in a few months.
Will use "round" numbers for the example.....
New car is $85k, trade is worth $75k
I assume I pay the difference of $10k and pay tax on that amount....
Dealer down here (Florida) says this:
1. We can take you car now, and apply the $75k but I would have to pay tax on the full price ($85k) when the car comes in
vs
2. Trade the car when the new one comes in, and they will value my trade at that time, and then pay tax on the difference..
(They will not hold or guarantee the trade in value, I'm basically at their mercy...)
I've always pre traded cars to lock in the agreed value, and paid the tax on the difference when my ordered car came in.
Can dealers pre-trade in Florida, or are we missing a beat here....?
I can pre trade and turn it in now, or, when it gets delivered in a few months.
Will use "round" numbers for the example.....
New car is $85k, trade is worth $75k
I assume I pay the difference of $10k and pay tax on that amount....
Dealer down here (Florida) says this:
1. We can take you car now, and apply the $75k but I would have to pay tax on the full price ($85k) when the car comes in
vs
2. Trade the car when the new one comes in, and they will value my trade at that time, and then pay tax on the difference..
(They will not hold or guarantee the trade in value, I'm basically at their mercy...)
I've always pre traded cars to lock in the agreed value, and paid the tax on the difference when my ordered car came in.
Can dealers pre-trade in Florida, or are we missing a beat here....?
Burning Brakes
Joined: Apr 2013
Posts: 1,035
Likes: 281
From: OH
Call your state sales tax agency. They will give you the correct answer. In Ohio I traded my 2019 in and waited 11 months for my 2022and got the full tax credit. I did place deposit on the new car when I traded in the old one.
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Michael S. Palmer
Race Director
Joined: Feb 2004
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From: Del Boca Vista FL
Bought 2020. Traded in 2006. Trade in value established a few months after order of new car. Took 15 months for delivery. Trade in conducted when new car was being shipped from Bowling Green. Previously established trade value applied at time of delivery of new car. Paid tax on figure after trade in value was deducted from original sales price.
Thread Starter
Race Director
Joined: Oct 1999
Posts: 17,710
Likes: 1,219
From: Phila PA, Bonita Springs FL
They said my trade in two months could be $6000 less, that they have no idea what the market would be and they would not guarantee the value… I just don’t trust that they would absolutely lowball me because they know I’d be looking to pay the difference to reduce the out of pocket.
Hence my desire to pre trade...
Hence my desire to pre trade...
Last edited by YO-EL; Aug 31, 2024 at 07:02 PM.
Drifting
Joined: May 2002
Posts: 1,477
Likes: 1,104
From: Nashville TN
They said my trade in two months could be $6000 less, that they have no idea what the market would be and they would not guarantee the value… I just don’t trust that they would absolutely lowball me because they know I’d be looking to pay the difference to reduce the out of pocket.
Hence my desire to pre trade...
Hence my desire to pre trade...
Moderator
Joined: Feb 2006
Posts: 39,156
Likes: 18,001
From: DFW Area TX
From the Florida Department of Revenue:
Trade-In Allowance
A registered motor vehicle dealer may deduct a trade-in allowance from the taxable sales price of a motor vehicle when, in a single transaction, tangible personal property (not real property) is traded as part of the motor vehicle sale. If the sale is between individuals (not registered with the Department), the purchaser must, in a single transaction, trade an aircraft, boat, motor vehicle, or mobile home for the motor vehicle being purchased.
A registered motor vehicle dealer may deduct a trade-in allowance from the taxable sales price of a motor vehicle when, in a single transaction, tangible personal property (not real property) is traded as part of the motor vehicle sale. If the sale is between individuals (not registered with the Department), the purchaser must, in a single transaction, trade an aircraft, boat, motor vehicle, or mobile home for the motor vehicle being purchased.
Racer
Joined: Jan 2018
Posts: 288
Likes: 148
Trade
I'm in Florida, but I did this with McMaulkin (NH). Traded my C7 to them a few months before my C8 was ready. They credited me for the trade and I only paid tax on the difference. I did have to pay shipping, but they don't have any markups so that may be a good option for you to look into.
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Same in Missouri only I think you have a longer time period to work with. Not sure if Florida has such a stipulation.
Melting Slicks
Joined: Oct 2017
Posts: 2,785
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From: Pensacola, FL
I pre-traded my 2017 Corvette for my 2022 Corvette. I paid taxes on the difference between the 2 vehicles. I was without a Corvette for 4 months, until the new one arrived. I'm in Pensacola.
Le Mans Master
Joined: May 2005
Posts: 6,660
Likes: 828
From: FORT LAUDERDALE FL
I have lived in Florida since the 70's. Find another dealer. You are entitled to the tax relief....done it many, many times...did I say, find another dealer......that knows how to keep books. Funny, most are criminally professional at that.
Thread Starter
Race Director
Joined: Oct 1999
Posts: 17,710
Likes: 1,219
From: Phila PA, Bonita Springs FL
I totally agree with you guys...
Just not sure why the dealer was insistent that tax is due on the full MSRP, when I'd be ordering a car right then and there!
Just not sure why the dealer was insistent that tax is due on the full MSRP, when I'd be ordering a car right then and there!
Thread Starter
Race Director
Joined: Oct 1999
Posts: 17,710
Likes: 1,219
From: Phila PA, Bonita Springs FL