Carvana is paying big $$

[GregsFX2Ranger]

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:



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.

How can Carvana calculate that you MADE A PROFIT on the vehicle? they don't know what I paid for my Ranger? they know what they are offering?

so how is a capital gain calculated???

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[CO2Ranger]

How can Carvana calculate that you MADE A PROFIT on the vehicle? they don't know what I paid for my Ranger? they know what they are offering?

so how is a capital gain calculated???

Honor system ?. Unless you get audited I think you're pretty safe.

 

[Augie81]

How can Carvana calculate that you MADE A PROFIT on the vehicle? they don't know what I paid for my Ranger? they know what they are offering?

so how is a capital gain calculated???

It is in my first post in this thread, the one you responded to orgianlly and detailed from their own website in the link I provided. Carvana may not know what you paid (however if part of the deal is paying off the remainder of your loan and giving you a check for the rest they probably will), but your vehicle documentation, registration and tax records when you bought it does. And that is what the tax people will see from what I understand from the link and information Carvana themselves provide.

But to summarize, capital gain is if you get paid more than you paid for it. That amount is taxable. I guess how honestly someone would want to handle that on their taxes is up to them. But I am willing to bet these car buyers report how much they paid to each individual.

That said, I'm out of this thread as it really is not realted to me or what I plan to do with my Ranger. I didn't come here to argue. I was just trying to share some information I thought might be interesting related to the topic.

 

[the5Gmartian]

I just tried this for fun. I have a fully loaded Lariat FX4 and their quote was actually 6K under what it blue books at

 

[GregsFX2Ranger]

Local dealer offered $32,000!!!!! (trading for another Ranger) This might get interesting!!!!

 

[WhyNot21]

I just tried this for fun. I have a fully loaded Lariat FX4 and their quote was actually 6K under what it blue books at

Anything that might show up on CarFax?

 

[r1ch999999]

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.

If you move to Maine they tax you on the way in too

 

[jsphlynch]

How can Carvana calculate that you MADE A PROFIT on the vehicle? they don't know what I paid for my Ranger? they know what they are offering?

so how is a capital gain calculated???

When you file your taxes for the year, you're required to self-report such capital gains.

 

[GregsFX2Ranger]

When you file your taxes for the year, you're required to self-report such capital gains.

I think I'll stay with the local dealer, since his is so close.

 

[the5Gmartian]

Anything that might show up on CarFax?

Nope, and only 9,000 miles. I think the xlt and lower trims are the sweet spot for Carvana

 

[GregsFX2Ranger]

Nope, and only 9,000 miles. I think the xlt and lower trims are the sweet spot for Carvana

you might be right.... The Lariat's are some overpriced to begin with. Lord, some Lariat Rangers top what you could buy a F150 STX/XLT for.

 

[Caliope]

Is that the same for every state? Good info I did not know that

Since last year, Illinois only exempts $10,000 of the of trade value from sales tax. This was part of Governor Pritzker's plan to solve the state's budget problems.

 

[Slanger]

I decided to try the Carvana trade in thing and they quoted me $35,432 for my 2020 XLT FX4 with 5555 miles

 

[WhyNot21]

Nope, and only 9,000 miles. I think the xlt and lower trims are the sweet spot for Carvana

My Lexus was a top trim UL and their offer was $6k above trade-in value. No brainer... I pick up my Lariat Thursday, can't wait!

 

[Ranger Roger]

Plus if you wait about 3 weeks Carvana will up their price at least $500 (on a $9000) sale. They want cars.

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