Recent trade in values for Ranger?

[Langwilliams]

While not as good as a few months ago these trucks have don't extremely well holding value. It seems like I used to get raked over trading in cars years back. I would get bored an trade one in after 2 or 3 years an take a bath on it, like losing half. I always got rebates and A plan to make up the difference so it didn't bother me back then. My saving account would be much larger if I just stuck with a car for a few years after it was paid off but being young you get caught up in having the new cars.

Sponsored

 

[Langwilliams]

I learned something about trade-ins recently but it might only apply to my state (or I may have not heard correctly).
Apparently, the trade in amount at the dealership can be deducted from the taxes due on the new vehicle. So if i buy a new car at $50,000, the sales tax due at 10% would be $5000. but a trade in of $25,000 would mean I'd only have to pay the taxes on the remaining $25,000 of the new car price which would be about $2500 in savings out the door.

That's how it works in Ohio. I don't remember when it changed but it used to be if you bought a used car there wasn't any sales tax because the tax on it was paid when it was new. It was this way when I bought my first car in 1982. Now the state cashes in every time it changes hands.

 

[NeilP]

I learned something about trade-ins recently but it might only apply to my state (or I may have not heard correctly).
Apparently, the trade in amount at the dealership can be deducted from the taxes due on the new vehicle. So if i buy a new car at $50,000, the sales tax due at 10% would be $5000. but a trade in of $25,000 would mean I'd only have to pay the taxes on the remaining $25,000 of the new car price which would be about $2500 in savings out the door.

That varies from state to state. I know CA screws you for the tax on the FULL purchase price whether you have a trade in or not.

Where I live now, the tax on an auto is 4%. If you have a trade, you only pay the tax on the difference.

 

[Yinzcity]

That varies from state to state. I know CA screws you for the tax on the FULL purchase price whether you have a trade in or not.

Where I live now, the tax on an auto is 4%. If you have a trade, you only pay the tax on the difference.

Michigan is strange, we get a credit on trade in up to a certain low dollar amount that increases each year. Last year I think 10k could be applied, so if you trade in a 30k vehicle, only 10k goes towards reducing taxes.

 

[TVRangerSTX]

Michigan is strange, we get a credit on trade in up to a certain low dollar amount that increases each year. Last year I think 10k could be applied, so if you trade in a 30k vehicle, only 10k goes towards reducing taxes.

And then they collect full tax from the new buyer when it's sold again (and again, and again). Something wrong with this picture?

 

[jayroderusprime]

KBB.ca had a wholesale trade-in window of $32000-37000 CAD for my '22 XLT. I understand a dealer has recondition costs, but seeing some dealers here flipping for a full 10K higher should change as inventories climb. Won't be parting with mine though.

 

[SILK]

That's how it works in Ohio. I don't remember when it changed but it used to be if you bought a used car there wasn't any sales tax because the tax on it was paid when it was new. It was this way when I bought my first car in 1982. Now the state cashes in every time it changes hands.

This is how it works in PA too. Tax is factored after trade and down payment as that's considered the "price" of the vehicle.

 

[TomSim]

if you buy a Maverick Hybrid, don't do what this poor fellow did:::

Greetings,

Took delivery on Dec 12. I drove it 500 miles. Worked great. Took it to an RV tow-gear specialist to get a Roadmaster baseplate and the electrical installed so we could tow it behind our motorhome. We also installed a Demco Air Force One brake system.

The next morning the battery had drained and, after charging, we got all kinds of ABS warnings on the screen along with "Antilock brake fault", "Pre-collision Assist Not Available", and "Hill Start Assist Warning" messages on the FordPass app. Additionally, the brake pedal was as hard as a rock.

The RV guys got it over to the Ford dealership. The Ford dealership had the RV guys remove all the wiring. It's been over a week and the dealership has no idea how to fix it. I do know they tried resetting the BMS. But they also informed me that, even with the wiring removed, the battery is draining overnight.

Any suggestions would be much appreciated.

Thanks!
So the RV place fried his computer and Ford is saying, Not our problem and oh by the way, we can't get one of those for a very long time

 

[Motorpsychology]

I learned something about trade-ins recently but it might only apply to my state (or I may have not heard correctly).
Apparently, the trade in amount at the dealership can be deducted from the taxes due on the new vehicle. So if i buy a new car at $50,000, the sales tax due at 10% would be $5000. but a trade in of $25,000 would mean I'd only have to pay the taxes on the remaining $25,000 of the new car price which would be about $2500 in savings out the door.

That is the case in MN and WI at least, too. No proof, but I suspect heavy lobbying by dealer org's and/or mfrs to have trade-ins count as equity toward the next vehicle purchase, new or used. When you sell your own trade, you will pay sales tax on the full purchase price of your new vehicle.
In my case, when I bought my 2021 Ranger, I sold my 2018 Escape to Carvana for more than what would have been the equity offset had I traded it in. The market seems to be adjusting back to a normal depreciation cycle lately, though.

 

[Motorpsychology]

And then they collect full tax from the new buyer when it's sold again (and again, and again). Something wrong with this picture?

The sales tax is reduced by the equity in the trade on used vehicles as well, but yes, great revenue for the states over several years, like housing; new inspection, new loan fees, new title search....

 

[Hickesy]

I learned something about trade-ins recently but it might only apply to my state (or I may have not heard correctly).
Apparently, the trade in amount at the dealership can be deducted from the taxes due on the new vehicle. So if i buy a new car at $50,000, the sales tax due at 10% would be $5000. but a trade in of $25,000 would mean I'd only have to pay the taxes on the remaining $25,000 of the new car price which would be about $2500 in savings out the door.

Couldn't you pop down to OR and avoid sales tax altogether?

 

[subquark]

It does look like trade-in values have gone down. I seem to remember this being more but Soupie's still priceless to me. From KBB:

After rebates $26,020 ...

 

[NotBudule]

It does look like trade-in values have gone down. I seem to remember this being more but Soupie's still priceless to me. From KBB:

After rebates $26,020 ...

SuperCabs ARE priceless as they can't be replaced , nobody making them anymore... well , nobody that I'd by one from anyway...

 

[Motorpsychology]

Couldn't you pop down to OR and avoid sales tax altogether?

Sales tax and rebates are tied to the permanent address where it will be titled and kept.

 

[LT Dangle]

Come sell them in the Northeast, lol. Rangers are fairly few and far between here......

Sponsored