When you click on links to various merchants on this site and make a purchase, this can result in this site earning a commission. Affiliate programs and affiliations include, but are not limited to, the eBay Partner Network.
What is it you are referring to "transaction cost" ?
Are you talking about loss? or taxes, registration etc...?
If you're buying and selling from dealers, there's going to be transaction cost in the form of dealer profit. Buying and selling privately, if you're shrewd, you can probably minimize that cost but you can't get around the government fees & taxes, can you?
The registration costs in Ohio aren't that much. Sales tax is pretty significant here (6.75%) on an expensive vehicle. How do you reconcile paying $7000-10,000 in taxes on a vehicle you may only own a few months? Or have you figured out a way around it?
If you're buying and selling from dealers, there's going to be transaction cost in the form of dealer profit. Buying and selling privately, if you're shrewd, you can probably minimize that cost but you can't get around the government fees & taxes, can you? The registration costs in Ohio aren't that much. Sales tax is pretty significant here (6.75%) on an expensive vehicle. How do you reconcile paying $7000-10,000 in taxes on a vehicle you may only own a few months? Or have you figured out a way around it?
In Texas, when you trade a vehicle, you pay sales tax (6.25%) on the difference in price. If the new vehicle cost equally or less than the vehicle being traded then there is no tax. Registration fees for me are minimal (6.00 plates fee and sub 50.00 title fee) as I hold DV plates. I keep my plates and transfer them to the new vehicle. One of my vehicles gets the registration renewed at 1.00 per year. As far as loss, I try for best trade value. I won't lie, I took an 8k hit on my 15 991 TT and if I trade this one (GT3) I'll be taking another hit that's is slightly less than my late one. You need to move to TX :-D