You Won A Free Car!

[Midpack]

We're in the market over the next 6 months. Which would you pick?

It won't cost you anything up front, but you own it thereafter - taxes, insurance, maintenance, etc. And what you do with it after it's yours is entirely up to you.

This is mostly just for fun, and may appeal to car peeps more than others.

 

[Blue Collar Guy]

Ill take the first stab at it. I picked new car. Since your poll said I have to pay the taxes that means I probably need to pay about 31k in taxes for it. If I need a new car (mine is a 2004 Hyundai), Im sure a new one would run me 31k, so I would get one with all the bells and whistles, then add in a bumper to bumper warranty for 10 years, I would come under the 100k, and be worry free -ish for 10 year. I would also add in the tire insurance, and the scheduled maintenance package, I would still come in under the 100k limit. Just a car wash and gas, and It would be sitting in the street for 10 year. I hope they have fire engine red for a color! Thanks for the quick dream

 

[Nemo2]

I'd sell it the very same day, (at a reasonable discount, so as to provide an incentive to buy).

 

[Blue Collar Guy]

I'd sell it the very same day, (at a reasonable discount, so as to provide an incentive to buy).

I was at the casino about 3 years ago, with my much referred to Uncle. They were giving away a Cadillac. It wasnt fire engine red but anyway he said if I win this car I need to sell it I cant pay taxes on 50 grand. I told him dont worry, I heard they do this on the game shows, you sell it that day for 25 Thousand to me, you only need to pay tax on the 25 Large. I told him wont that ruin your food stamps? He said no, thats a windfall, as long as you hide it before the end of the month your good! Crazy as a fox.

 

[Senator]

The same one I just ordered. 2017 Ford F350 Platinum Ultimate, 6.7, 4x4, SRW LB.

 

[W2R]

I'd sell it the very same day, (at a reasonable discount, so as to provide an incentive to buy).

Oh!! THIS was the best answer, but I didn't think of it.

Before I saw Nemo's answer, I voted for neither because either type of car suggested could be so easily scratched, damaged, or stolen. It would occupy my thoughts and worries too much for comfort.

My present car (2009 Venza) is perfectly fine for transportation from "point A" to "point B" and that is all I want a car to do for me.

 

[marko]

A classic $100K car will likely be worth a heck of a lot more in 10 years (double?) while a new $100K car likely will not.

My neighbor collects Bugattis. Finds them in less than excellent condition, puts another $50K+ into them and make a good profit when he sells.

Apparently there's multiple levels of restoration (all the way down to having original washers under each bolt); the better the restoration the bigger the price. Classic cars are fairly big around here (North of Boston) and there's a few guys who do literally world-class restorations--for a price.

 

[RobbieB]

I'll take the new car, pay the taxes and insurance, load it just like I want it and drive it far and often. Time to buy a new car anyway, mine is 14 years old.

 

[JoeWras]

Yeah, I didn't want the expensive car because of property taxes, insurance, and income tax from the winnings. How about a nice $30,000 car?

In all seriousness, I had a friend who won a car in Vegas fresh out of college. This was mid 80s. It was expensive too, over $30k. I asked what he did about taxes and hassle and all that. His answer was that there are brokers in town that handle that. Basically, you sign it all over to them, and they take care of it for you, from taxes, to resale, etc. He says in the end he was handed a check for about $8,000 (after tax withholding) and was perfectly happy with that.

 

[travelover]

Yeah, I didn't want the expensive car because of property taxes, insurance, and income tax from the winnings. How about a nice $30,000 car?

In all seriousness, I had a friend who won a car in Vegas fresh out of college. This was mid 80s. It was expensive too, over $30k. I asked what he did about taxes and hassle and all that. His answer was that there are brokers in town that handle that. Basically, you sign it all over to them, and they take care of it for you, from taxes, to resale, etc. He says in the end he was handed a check for about $8,000 (after tax withholding) and was perfectly happy with that.

Back before lotteries gave an option for a single cash payment, there were similar [-]scams[/-] helpful brokers that would buy your lifetime lottery payout for a pittance. A marriage made in heaven for the stupid and the greedy.

 

[JoeWras]

Back before lotteries gave an option for a single cash payment, there were similar [-]scams[/-] helpful brokers that would buy your lifetime lottery payout for a pittance. A marriage made in heaven for the stupid and the greedy.

Yeah. There are still those guys "helping" people with "structured payments."

At least back then, the Vegas car thing is unique. He was told he'd have to take delivery from a local dealer. He was from Boston. Then he'd have to deal with registration, shipping, etc. All that stuff.

To a 22 year old fresh out of college, getting your $8k and giving $8k to the broker seemed like a fair deal. The car, although listed over $30k was unique (in a bad way) and would have sold well below that.

 

[JoeWras]

Sorry to derail your discussion, Midpack. But you said we won it, and it is free! In true ER.org form, we always know there are strings attached.

 

[Car-Guy]

A classic $100K car will likely be worth a heck of a lot more in 10 years (double?) while a new $100K car likely will not.

Past performance is no guarantee of future results - I've made some money and lost some money on classics. Never doubled my money even after 10 years. Maybe I'm not buying the right cars.

 

[Car-Guy]

I'd probably get another classic. Maybe a 63 SW Vette (of course fully restored to original factory specs). No mods....

 

[Midpack]

I'd probably get another classic. Maybe a 63 SW Vette (of course fully restored to original factory specs). No mods....

Could you buy a fully restored 63 SW Vette for $100K? I have no idea but I watch several car restoration shows and I get the impression you'd be looking at significantly more than $100K.

 

[Midpack]

A classic $100K car will likely be worth a heck of a lot more in 10 years (double?) while a new $100K car likely will not.

Maybe, maybe not. Though the likelihood of a new car appreciating within 10 years would be almost nil. OTOH, the cost of properly maintaining a classic would probably be much higher than a new car. I assume insurance on a classic car (of equal value to new) would be higher too, as repairs would have to be considerably higher based on all the car shows I watch.

Past performance is no guarantee of future results - I've made some money and lost some money on classics. Never doubled my money even after 10 years. Maybe I'm not buying the right cars.

 

[Car-Guy]

Could you buy a fully restored 63 SW Vette for $100K? I have no idea but I watch several car restoration shows and I get the impression you'd be looking at significantly more than $100K.

maybe - depends a lot of the level/quality of the restoration - not all restorations are created equal

 

[ExFlyBoy5]

I voted brand new car, but like others, I would sell it immediately. The taxes would be pricey and I would guess the insurance would be high too and it wouldn't be worth it to me. The older I get, the more I think that cars are simply appliances and not something to "treasure".

 

[T-Minus]

The same one I just ordered. 2017 Ford F350 Platinum Ultimate, 6.7, 4x4, SRW LB.

Yep. I'd have one too, if it would fit in my garage!

 

[braumeister]

Definitely the classic. But I wouldn't have the choice -- DW has lusted after a DeLorean since it first came out and would be all over that. Saw one recently for $80K with less than 900 miles on it, in storage since it was new.

 

[Walt34]

I voted brand new car, but like others, I would sell it immediately. The taxes would be pricey and I would guess the insurance would be high too and it wouldn't be worth it to me. The older I get, the more I think that cars are simply appliances and not something to "treasure".

That's probably what I would do too and for the same reasons.

If I netted say, $60k or even $50k or so after taxes and transaction costs, discount because it's "used", I'd be happy. It'd be more $$$ than I have now so what's to complain about?

Then if I could talk DW into it, maybe get a Cessna 172 and set a goal of visiting all 48 continental states.

 

[aja8888]

I'll take the classic car and buy back my 1965 Vette Stingray roadster with hard top, 327/300 HP, and 4 speed Muncie transmission. Mine was Glen Green with white leather interior. I cry every time I think about why I sold that car.

Anyway, a unmolested stock one would easily be $100 K. BUT, Classic pltes here in Texas are $50!!

 

[Blue Collar Guy]

Anyone know about this tax issue? You win a car they say has a MSRP of 100k, you sell it the next day for 75k. You pay taxes on the 100 or do you have an argument it was only worth 75? I knew a guy at work his Aunt probably in 1975-1980 ish was a contestant in the game show lets make a deal, she won carpet, sofa, freezer and stuff you cant really throw in the over head compartment on your flight back home. He told me after the show ended there were 2 competing guys offering to buy the stuff she had just won for a deep discount, she took the money, they gave her a receipt. He said that she used that for the IRS. Anyone know if this is true stuff?

 

[omni550]

DW has lusted after a DeLorean since it first came out and would be all over that. Saw one recently for $80K with less than 900 miles on it, in storage since it was new.
View attachment 26557

There's a dealer in Bonita Springs, FL who usually has about 12-15 DeLoreans on his lot "in season". It's quite a sight to see them all lined up on his lot.

omni

 

[ExFlyBoy5]

Anyone know about this tax issue? You win a car they say has a MSRP of 100k, you sell it the next day for 75k. You pay taxes on the 100 or do you have an argument it was only worth 75? I knew a guy at work his Aunt probably in 1975-1980 ish was a contestant in the game show lets make a deal, she won carpet, sofa, freezer and stuff you cant really throw in the over head compartment on your flight back home. He told me after the show ended there were 2 competing guys offering to buy the stuff she had just won for a deep discount, she took the money, they gave her a receipt. He said that she used that for the IRS. Anyone know if this is true stuff?

It probably depends on the state. I *think* here in Georgia you would have to at least pay the ad valorem tax (on a car your won) which is in the neighborhood of 7% of the FMV. As far as federal tax implications if sold immediately, I came across this:

In the United States, you are required to pay taxes on sweepstakes prizes, which are treated as income for tax purposes. That means you'll be required to add the fair market value of your prize when you report your income to the IRS

This could be a VERY bad deal for some folks who are getting ACA subsidies. As they say, there is rarely a free lunch.