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robr2 ·

Here is where useless stuff goes.

About

Username
robr2
Location
Boston
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More about me
#2
Vehicle(s) I currently own
2011 Ford Explorer, 2005 VW Passat, 2000 Honda Odyssey
  • Re: Buying and Selling Cars: Post Your Experiences

    mike - congrats on the car.

    With that being said, I'm setting the over/under for January 2016. Get your bets in now.
  • Re: Real-World Trade-In Values

    You better sit down.
  • Re: Entry Level Luxury Performance Sedans

    Just Zainoed up the 535-, the Dark Graphite really looks amazing with the Zaino.
    Tints going on this weekend-20% rear and 30% front.
    TINTS IS NOT A WORD.

    It's TINT!!!
  • Re: Buying and Selling Cars: Post Your Experiences

    @ab348‌ 

    It's quite confusing, "ab".  I have never had an experience like that while I was in the business.  It is a way to avoid paying sales tax out of your pocket yet still take the sales tax deduction on your Federal Return.  You end up receiving the OTD price for the new vehicle for your trade.

    An example would be when I trade my CLS in to the dealer, the value of the trade is the out-the-door price of the new car.  Obviously there is no sales tax involved here in Florida because you deduct the trade from the price of the car and are taxed on the difference.  But in the case posted about vouchers, some dealers will accept a third party voucher for the car as payment towards the new car which includes the fees and taxes, and will show that your trade paid for those taxes.  

    Tax avoidance is a felony in most states and this would be pretty close to committing a crime, but very difficult to prove that collusion took place.

    This is my take on this.  If I'm wrong, someone please correct me!
    I think it's not a way to to preserve the sales tax credit on your federal return. It's a way to preserve the sales tax credit based on the trade in amount.

    A bank draft is a fancy word for a check. It would be made out to the other dealer you are buying from. This way they are buying the car from the other dealer, not from you. Technically, you are still trading it in.

    It will work as long as the dealer you are buying from is willing to accept the "draft."

    Is it legal? That's up to the lawyers to decide.

    BTW Mike - tax avoidance is perfectly legal. Tax evasion isn't. The former is done by smart people, the latter those not so smart. :smile:
  • Re: Buying and Selling Cars: Post Your Experiences

    Got stuck behind a porcupine in a BMW convertible today. Weather was nice (high 50's) so he had the top down. Going down a semi rural road, he kept slamming on the brakes an going about 15 mph whenever he came upon some water from melting snow to keep water from misting inside the car.