Why should I do a so called private sale thru a dealership?

This morning I had agreed to buy a 1996 Blazer off a private seller.
The deal was for us to meet tomorrow at his bank. We were to wait for my cashier's check to clear into his account. Then the plan was to
get the title signed over and notarized.
This afternoon I get a message that he wants to meet me at the Chevy dealership. From what I can gather, they want to do the sale there, so that the dealership can treat it like a trade-in and the guy will pay less taxes on their new car.
Has anyone ever heard of this? What does the dealer gain in this? It just sounds fishy to me and I'm ready to call the whole deal off.
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I've bought and sold a few cars over the years privately but I've never even heard of handling it through a dealer as a trade-in. Yes it does sound fishy, but maybe there is someone here who can shed some light on this practice. I'd call your bank a maybe even a local car dealer to two (ask to speak with someone in their finance section for a few questions) and see what they have to say about it.
Frankly, from what I remember from the last time I sold a car privately if you wanted to pay a few bucks less in taxes you just filled out a lesser amount on the title when you transfered it over. Provided the sales price you wrote down wasn't too unreasonable nobody ever got questioned about it. Things may have changed somewhat over the years however, but something tells me that involving a dealer isn't going to make this transaction any cheaper for anyone in the long run. Someone is going to have to make some money, which means someone else is going to have to fork it over.
Good luck - Jonathan

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I guess the seller of the Blazer would be able to bring the cost of their new car down (via a trade-in) and they would have to pay less sales tax on their new car.
By doing the Blazer sale completely private, it would simply just give him more money to make a down payment on the new car. He'd have to pay sales tax on the total cost of the car. (Not the total cost minus the trade in value)
I don't see how the dealer would do this would getting something extra for themselves.
I just don't see how this would help me at all.
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Is the dealer going to give a warrantee,

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wrote:

Not that I'm aware of. The car's a 1996.
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John Falcon wrote:

I did this once, as the newer car buyer. The dealer knew I was selling my car privately, and he suggested this as a tactic to save me tax on the amount I sold my other car for.
The buyer of my older car agreed so we did the deal.
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When I did it (as the used car buyer) some years back, the spiel was that the dealer did it for the new car purchaser as a favor and, by implication, an additional service that would help to gain the new car purchaser's loyalty to that dealer.
I think that what the previous owner gets out of it is a tax break. My recollection is that when somebody sells a car, they have to tell the state how much it was sold for and then remit (in Penna...) six percent of that amount to the state. Dealers, OTOH, don't have to pay sales tax, so going through a dealer the original owner still gets his price but does not have to remit to the state.
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In Nebraska the sales tax, which is paid to the county treasurer, is based on the net difference so treating it as a trade in would save the new vehicle purchaser 5-1/2 to 7 percent of the price of the "trade in".

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Maybe the seller doesn't actually own it and it is still under a financing agreement ? Oh and the waiting for the check to clear is stupid, just cash the check and have the title signed before you hand it over.
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"John Falcon" <(nospam)johnfalcon snipped-for-privacy@yahoo.com> wrote in message
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The only time anyone should wait for a cashier's check to clear is if they are concerned that the bank who issued it will go out of business before it clears. Not very likely! Be prepared to walk away if the deal is not what you agreed to. Let the seller pay any charges to the dealer, the seller is the one who is profiting from this transaction. You can't fib a little on what you paid for it as it sounds like the paperwork will be processed by the dealer.
Steve W. wrote:

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Per Robert Ball:

My understanding is that "Clearing" is not sufficient.
Yes, the bank will credit your account for the face value of the check when it "clears".
However if it bounces further back in the system, the bank will then debit your account.
This came up in a thread on Internet scams.
For instance: you put your car up for sale at, say $5,000. Then you get a reply from some guy in Namibia who wants to buy it.
He says that his brother specializes in getting cars from the USA to there but needs cash up front to finance the process and there's some BS reason why he can't just give the money to the brother then and there.
To get the cash to the brother, the guy in Namibia sends you a cashier's check for, say, $7,500. You deposit that check in your bank account. When it clears, you send $2,500 to his brother.
His brother pockets the funds.... then it turns out that the "Cashier's Check" is bogus; your bank debits your account; and you're out $2,500.
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John Falcon wrote:

    In Florida Cashiers checks can take up to 5 Business days to clear, due to counterfitters.
    In your state that type of dealer trick might be legal. Here in Ohio it would be Illegal. The only reason I can see for going to the dealership for it is: Getting the title noterized, and a Tempory tag issued by the dealer.
    My self, I would walk away from the deal. Charles
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On 2005-08-08 23:22:00 -0400, John Falcon

Do it, i't's a no brainer, what's going on is a way for the seller to save several hundred dollars, lets just say that your car costs 5k, if it's treated like a trade in that would be 5k times your state tax say 6% or $300. The dealer will make your life easier by doing all the paper work, win win.
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