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.
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
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
I just don't see how this would help me at all.
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.
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
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
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".
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.
"John Falcon" <(nospam)johnfalcon firstname.lastname@example.org> wrote in message
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:
My understanding is that "Clearing" is not sufficient.
Yes, the bank will credit your account for the face value of the check when it
However if it bounces further back in the system, the bank will then debit your
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.
In Florida Cashiers checks can take up to 5 Business days to clear, due
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
My self, I would walk away from the deal.
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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