doug_999

I think you lose the tax break if you pre-trade in and don’t finish the deal within 9 months. Unless I’m reading it wrong?

doug_999

Not that hard to find? They seem to be few and far between unless you want silver or white . Either way, if certain options are important to you, they can be nearly impossible to find.

TXshaggy

Well the flip will have to be epic to eat the sales tax on 3 vehicles and depreciation on the current GTS.

No sales tax credit in CA.

John Mclane

You're correct, but it varies a from state to state and but the OP is in CA, that apparently doesn't have a tax break at all.

RedCarrot

2 vehicles. The tax and depreciation on his current GTS are sunk cost. Depreciation would apply just the same on his future new-to-him GTS in the form of lower price than MSRP. Spyder RS ought to fetch a pretty nice price up in Norcal.

RedCarrot

Harder to find than a Spyder RS with options that he likes at MSRP if he regrets not taking this oppty?

TXshaggy

His current car costs are sunk…yes, probably 20-30k on this deal.

Spyder RS CA sales tax sunk even if he reclaims 100% of his purchase price back.

New or used GTS; CA will still need its tax cut.

That’s three cars. What’s the point if just to flip RS?

I don’t see how the mats work here…

RedCarrot

First of all, I want to be clear I am not suggesting him to intentionally flip the Spyder RS for profit. I actually despise such practices with a passion.

With that out of the way, let's do some simple math.

Cost for his current GTS is already paid and he won't get it back either way. Let's call its current value at $100k
Sales tax on his Spyder RS: let's call it $20k
Say he wants to sell the Spyder RS and buy another used GTS from a private party that's comparable to the one he sold: $105k
Sales tax on this GTS: $10k

Total sales tax and margin to get him back to where he currently is: 20k + 10k + 5k = $35k

A very lightly used Spyder RS should have no trouble selling for $40K above MSRP, likely higher.

The point is there's no risk in him buying the Spyder RS even IF he later regrets trading in his GTS for it. I didn't say to flip it. Those are your words.

TXshaggy

Wow, discounting the 20-30K he’s losing on his current ride as “sunk cost” —- he’ll end up maybe around even in a flip to end up in the exact same car he’s in.

Best case scenario.

Um ok…guess that’s sound RL financial advice.

ExMB

You love RL financial advisors. Admit it.

WGJP 993

@Leonel So...what did you decide to do?

Hwy

SRS
SRS
SRS

Lucifer

you pay 100% sales tax on any car, used or new, in Cali

Lucifer

Really not sure about this part. Recently a GT4RS couldn't even get a 15k over MSRP at BAT.
As a potential buyer for those cars I feel like a $100k GTS 4.0 is a decent deal, a $120k manual Spyder is a bargain... Not sure about a $200k+ Spyder RS.

TXshaggy

Well to be fair, that GT4RS had $62K in options. Pretty steep hill there for a black car. Buyer still willing to pay $231K with BAT fee.

Also a little different as 4RS been in the US for a while as compared to early Spyder RSs hitting BAT.

But, Spyders usually pull less than 4 counterpart.