Options help
Thread Starter
Pro
Joined: Feb 2016
Posts: 711
Likes: 200
Options help
Well I have two options to secure a new C8.. I can trade in my C7 to the dealer now and he will pay off the balance of my loan and put the rest of the trade in balance toward the C8 ( dealer will hold the balance until my C8 comes in ). or Sell it directly to Caravana or CarMax they will pay the balance of my loan and cut me a cash check. Option one saves me tax money on new purchase option two calms my wife down that dealer will hold my money for months or more. She said no way she would let dealer hold cash for a long time. So opinions needed ,??
Melting Slicks
Joined: Aug 2003
Posts: 2,906
Likes: 1,365
From: Sevierville Tn
Well I have two options to secure a new C8.. I can trade in my C7 to the dealer now and he will pay off the balance of my loan and put the rest of the trade in balance toward the C8 ( dealer will hold the balance until my C8 comes in ). or Sell it directly to Caravana or CarMax they will pay the balance of my loan and cut me a cash check. Option one saves me tax money on new purchase option two calms my wife down that dealer will hold my money for months or more. She said no way she would let dealer hold cash for a long time. So opinions needed ,??
How much tax savings, will it be?
I've let the dealer hold mine trade value for months because I saved a lot of taxes.
They can make you a letter showing trade value against new car.
Race Director
Joined: Aug 2019
Posts: 12,351
Likes: 14,182
From: Central Illinois
AIR FORCE VETERAN
Joined: Nov 2009
Posts: 6,223
Likes: 441
From: Pennsylvania
The tax burden would make it worth while to trade it. If the price is correct. Secondly if you take cash from Car Max that’s a solid deal. The price for Used C7 is not low but it is going to be lower by spring when the C8’s get delivered. My opinion only.
Race Director
Joined: Aug 2019
Posts: 12,351
Likes: 14,182
From: Central Illinois
It just depends on what everyone is offering you. For example, if the dealer is going to give you $35k, but it saves you $2k in taxes you are really getting $37k. So Carvana and Carmax will have to give you at least $37k to be even. If they do then you can take the proceeds home and keep your wife happy. If they all show you the same $35k, then you have to ask your wife if it's worth the $2k tax savings vs. her holding the $.
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Le Mans Master
Joined: Jul 2000
Posts: 6,559
Likes: 4,501
From: North Dallas 40 TX
Add this to the math. If your dealer declares bankruptcy before you take delivery, you will be a creditor and get in a long line for a partial refund and not have funds to buy the car when it comes in. If you get cash from Carvana, you don’t have that risk. And you could get your car at the same time as the bankruptcy would not likely affect sold cars, probably only floor planning. Worst case scenario GM takes ever operation of the dealership and you still get the car. How well do you know the financial health of your dealer?
Drifting
Joined: Nov 2002
Posts: 1,687
Likes: 199
From: Loveland, CO
I traded my C7 to my dealer last month. I won’t drive in winteranyway, and feel prices will drop. Ran the math with tax advantage and felt comfortable with numbers. In effect, I gave the dealer a 7 month interest free loan, but felt interest is meaningless in this economy.
Ralph
Ralph
Melting Slicks
Joined: Aug 2004
Posts: 2,149
Likes: 1,349
From: Big D Dallas TEXAS
First ask the dealer if he will delay the tax trade and apply it to the C8 when it arrives. Never let the dealer hold your money, if they went belly up or sold the dealer getting your money would be a pain in the A. 2nd try this place it’s all online and I sold them a few cars and they paid more than Car Max. https://www.givemethevin.com/
‘Good luck, but don’t allow them to hold your money, say you got my C7 I want my money because these are two separate transactions. I buy and sell cars all the time.
‘Good luck, but don’t allow them to hold your money, say you got my C7 I want my money because these are two separate transactions. I buy and sell cars all the time.
Last edited by fasttoys; Oct 1, 2019 at 12:07 AM.
Le Mans Master
Joined: Jan 2017
Posts: 5,363
Likes: 4,108
From: New England
Right but that's the dealer looking out for themself. Let's say the OP gets his car in May. Or July. That's 8-10 months of no Corvette and the dealer just sitting on your money.
What happens if he gets his car in June and it has a defect and they have to order another one? It happens. Then he's waiting over a year.
If it's me I am not putting all the cards in the dealers hand. You will be better off selling privately in the Spring.
What happens if he gets his car in June and it has a defect and they have to order another one? It happens. Then he's waiting over a year.
If it's me I am not putting all the cards in the dealers hand. You will be better off selling privately in the Spring.
Last edited by thill444; Oct 1, 2019 at 03:55 PM.