Any recommendations in the Houston area to start my search?

What is your current truck, so that we have an idea what "newer" means?

2006 Dakota, 210,000 miles.

Would like to look at 2013-2015 Ford, Chevy, & Ram models

how good you are at putting puzzle pieces together

2014-15 Chevy Silverado or GMC Sierra

Trading my 2015 Ford F150 Platinum in about 4 weeks. About 20k miles. I could be convinced to sell it out right.

pnsagdad said:

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how good you are at putting puzzle pieces together

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Better than putting master bathrooms together apparently.....

Price

Rustys-Beef-o-Reeno said:

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Price

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The dealership is tentatively offering $40,000 for the trade. $42,000 seems fair.

I can post pictures and specs if anyone is interested.

Reloadags1998 said:

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Rustys-Beef-o-Reeno said:

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Price

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The dealership is tentatively offering $40,000 for the trade. $42,000 seems fair.

I can post pictures and specs if anyone is interested.

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You need to sell it at least 6.25% more to break even on the sales tax. $2,500 in your $40k example.

dubi said:

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Reloadags1998 said:

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Rustys-Beef-o-Reeno said:

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Price

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The dealership is tentatively offering $40,000 for the trade. $42,000 seems fair.

I can post pictures and specs if anyone is interested.

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You need to sell it at least 6.25% more to break even on the sales tax. $2,500 in your $40k example.

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How does that work? I'm not sure I follow the math exactly. Are you talking about the tax savings I get on the new truck withe a $40k trade or the taxes due on the sell of the of the used on to a private party? Obviously not a world I deal with often.

When u trade in a truck you only pay sales tax on the difference in price between the two. Trade in 40k, new is 50k then pay sales tax on 10k
Private party you would pay tax on all 50k so you need to add that into your private party sales price for it to be a better deal than trading it in at the dealer

Basically when you trade, you only pay the 6.25% sales tax on the cost difference between the new vehicle and the old vehicle. So to do a private sale, you need to make >= the sales tax savings or you should trade it in.

Ok, maybe I have it To be clear however, say I still owe $20,000, then is the tax savings is based on the difference (Trade - payoff) that is actually applied to the new truck? $50,000 for new truck, $40,000 for trade in, still owe $20,000 on trade in. Pay taxes on $30,000 of new truck? Or is the full trade value used regardless of payoff?

New car cost minus trade in price
How much you owe doesn't matter

OK, great!! So, probably need to ask $44,600 then to keep the same "margin"

Thanks guys for teaching me something to today.

Reloadags1998 said:

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OK, great!! So, probably need to ask $44,600 then to keep the same "margin"

Thanks guys for teaching me something to today.

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If the trade amount = $40,000, then:

private sale amount = $40,000 x 1.0625 = $42,500

If you sell for less than that you will be losing money over trading it to the dealer.

dubi said:

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Reloadags1998 said:

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OK, great!! So, probably need to ask $44,600 then to keep the same "margin"

Thanks guys for teaching me something to today.

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If the trade amount = $40,000, then:

private sale amount = $40,000 x 1.0625 = $42,500

If you sell for less than that you will be losing money over trading it to the dealer.

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Yeah, I was asking about 5% above what I thought the trade in was (break even) originally. If I need to ask $42,500 to break even to account for loss of tax benefit, I need to ask about $44,600 to keep the same margin of "profit"