Carvana is paying big $$

[eds21]

Yes. You need to get a letter with 10 day payoff from lender. THey pay the lender direct then cut you a check on the spot for the equity if you have any.

When I did it, they got me on a three way call with my lender and go a 10 day payoff over the phone so I didnt have to do anything except give them permission to release the payoff amount. It was very easy.

Sponsored

 

[WhyNot21]

This entire situation seems fishy to me, people buying used trucks for more than you would spend on a new one.

Like I said earlier, they make up for it on the sale end when people use their financing. I've heard their rates can be >20% if you have bad credit.

 

[WhyNot21]

...
I did find it online and they are asking $41,800 for it.
...

That's crazy. I pick my $46k stickered Lariat on Thursday. I'm getting it for $42,066 including the $2,250 rebate. There's an identical one on their lot, only blue, that is $750 less, because it's been there over 60 days.

 

[r1ch999999]

Like I said earlier, they make up for it on the sale end when people use their financing. I've heard their rates can be >20% if you have bad credit.

I figured it was something like that, I missed your earlier post.

 

[eds21]

That's crazy. I pick my $46k stickered Lariat on Thursday. I'm getting it for $42,066 including the $2,250 rebate. There's an identical one on their lot, only blue, that is $750 less, because it's been there over 60 days.

I just realized I didnt say that my old truck was a 2018 F-150 XLT Supercrew 4X4 FX4 and not a Ranger. Still crazy number though.

 

[TBR17]

When I did it, they got me on a three way call with my lender and go a 10 day payoff over the phone so I didnt have to do anything except give them permission to release the payoff amount. It was very easy.

I've only had my truck since Dec and have gone back and forth about what leveling kit, tires, wheels, etc and this made it easy. Instead of spending 3k+ on goodies I can buy the Tremor. I'm actually making money on my Ranger. I only paid $34,400ish out the door 4 months ago. They are making it a no brainer.

 

[AuburnRanger]

Yes. You need to get a letter with 10 day payoff from lender. THey pay the lender direct then cut you a check on the spot for the equity if you have any.

Somehow, I'm guessing from my name and VIN, they were able to pull my payoff amount directly from Bank of America. I just entered who my loan was with and they were able to pull it themselves.

 

[GregsFX2Ranger]

Just pulled the trigger. They are coming to get my truck Wednesday. I found a Tremor XLT at a dealer near by for 37,298 and no dealer fee. Just tax and tag transfer. Not sure how I feel going from a Super Cab to a crew. I'll miss some Lariat options too.

What did you get for your truck?

 

[GregsFX2Ranger]

32k here from Carvana and Vroom... purchased for 34k 2 years ago.. pretty temping for sure.

BUT... private party wise, 34 is probably a fare number on both sides.

PRIVATE PARTY could take days, weeks, months.

Carvana is now.

 

[Augie81]

Just a note because I got a little curious about this. If you sell your vehicle for more than you paid for it that is taxable as well. Maybe it won't amount to much but it is considered capital gain. Just something to keep in mind.

From the Carvana website:

https://www.carvana.com/research/2020/03/what-to-know-about-taxes-when-you-sell-a-vehicle/

When you sell a car for more than it is worth, you do have to pay taxes. Selling a car for more than you have invested in it is considered a capital gain. Thus, you have to pay capital gains tax on this transaction.

The amount of capital gains tax you will have to pay may vary depending on numerous variables, especially how much income you have from other sources. You do not have to pay this tax until you file your tax return for the year. See below for more information on how to report a capital gain from selling a car for a profit.

You have to prove to the IRS whether you sold the vehicle for a profit or a loss. Of course, this means that you have to keep the documentation from when you sold the car. However, it also means that you should keep the documentation whenever you buy a car.

Make sure to keep these documents in a place where they are safe and you can easily find them several years later when you do sell the vehicle. Otherwise, you may have a hard time proving whether you sold the vehicle for a profit or a loss. This could end up being a big problem when it comes time for you to file your federal income taxes.

As previously mentioned, the total amount you have invested in the vehicle is what determines whether or not you take a profit or a loss, which in turn determines your tax liability. The total investment in the vehicle includes modifications, such as new wheels or a premium stereo system, as these modifications may increase the value of the vehicle. It’s rare that these modifications increase the value of the vehicle enough that a loss would be turned into a profit. However, you should keep extensive documentation from any value-increasing modifications you have done to your vehicle just in case you need this documentation for tax purposes.

You already know that you have to report any profits you receive from selling a vehicle on your tax return. However, you have to report in a capital gain that you get from selling a vehicle in a very specific way. You cannot report this with the income from your job.

To report a capital gain that you get from profiting from a used vehicle sale, you must use IRS Form 1040, Schedule D. You also have to classify this capital gain as a short-term capital gain if you owned the vehicle for less than a year. Otherwise, you will have to classify this amount on your tax return as a long-term capital gain. You may also have to enclose supporting documentation when you file your tax return. You should consult your tax professional for more details on how to correctly report a capital gain that you get from selling a used vehicle.

 

[Dr. Zaius]

Yup.

The tax man always has his hands out when you get a deal, regardless of where or how you got it.

Here in GA there is no sales tax on a vehicle.

Instead we have a Title Ad Valorem Tax which basically works like a sales tax on a new vehicle.

Where it bites you is on a used vehicle.

When you get the title transferred into your name, the state takes the KBB, Edmunds, and NADA values for the car and then taxes you on the highest value of the 3, regardless of what you paid for it or even if it was given to you.

 

[GregsFX2Ranger]

I have contacted a local dealer here to see what they will offer. Sure it won't be anything like Carvana is offering, but there is another truck I would like to have. Might like to get rid of this FX2 package on a 4x2. Yields a choppy ride, but I could live with it if numbers don't dictate sell/trade.

 

[GregsFX2Ranger]

Just a note because I got a little curious about this. If you sell your vehicle for more than you paid for it that is taxable as well. Maybe it won't amount to much but it is considered capital gain. Just something to keep in mind.

From the Carvana website:

https://www.carvana.com/research/2020/03/what-to-know-about-taxes-when-you-sell-a-vehicle/

I pointed that out about the taxes as well a few posts back . . . .

 

[Augie81]

I pointed that out about the taxes as well a few posts back . . . .

I apologize. I have not read every post in this thread, just skimmed through it. I just saw some people getting excited about getting an offer for more than they paid. So I thought I would mention it. If I saw correctly, I just looked up your post, and I thought it was about having to pay full sales tax when buying another vehicle if you don't trade in:

You will end up paying FULL SALES TAX on the next vehicle you choose, which could negate some of the "savings" you think will end up in your pocket.

The benefit of trading it in, which no dealer will probably pay you what Carvana is offering, is the sales tax savings. You only pay sales tax on the trade difference.

Perhaps I misunderstood but that does not seem to address the capital gains tax I was referring to. The way I understand it is if you sell to Carvana for a profit then you owe taxes on that. So say you bought for $30,000 and they give you $32,000 you are taxed on that $2,000. Then if you take their check, pay off your loan with it (or just cash it if paid off) and buy another without trade in, based on your post, you will be taxed on the full value of the new vehicle as well. So more taxes which could be a loss unless buying a cheaper vehicle.

I'm no tax expert. I just got curious and looked some things up that I thought were interesting based on the trends in this thread.

 

[mlarma]

dealers seem to be paying to top dollar for low mileage, newer year vehicles.

I paid $28,000 for a 2019 Ram 1500 Crew 4x2 Hemi Tradesman. Dealer gave me $29,900 for it on trade towards the ranger.

I got my 2020 Ranger for $27,700 (after all rebates) so I walked away with a nice check.

I never really needed a full size V8 pickup.

What cab style, trim and package level is your Ranger?

Sponsored