Sell car privately or to dealer?

[Al in Ohio]

Well yeah, but I sold the car in question for more than ten grand... cash.

Your process would not have worked in my case because the buyer drove 3 hours to view the vehicle.

So they were so prepared to drive three hours to buy it possibly sight unseen with ten grand, but it would be harder to arrive with a prepared cashiers check in case they wanted to buy it also? Not sure how many people would drive around with ten grand to "maybe" buy a car they hadn't seen in person yet, but that's certainly no more on the fringe then bringing a check just in case you liked it, plus no worries about foul play between point A and point B. The authorizes warn people not to take large amount cash to auto sales due to a common scam where Craigslist sellers steal the cash at gunpoint and drive away with the car.

 

[ziggy29]

Everyone has their own pain and hassle threshold. Selling to a dealer usually eliminates much pain and hassle, but can result in hundreds and sometimes thousands less in the sale price. I think most of the folks here are hands-on and [-]tightwad[/-] frugal enough to endure the hassle of selling a car to a private party, but not everyone is. You have to place a value on your own time and the value of an easier disposal of your vehicle.

 

[utrecht]

So they were so prepared to drive three hours to buy it possibly sight unseen with ten grand, but it would be harder to arrive with a prepared cashiers check in case they wanted to buy it also? Not sure how many people would drive around with ten grand to "maybe" buy a car they hadn't seen in person yet, but that's certainly no more on the fringe then bringing a check just in case you liked it, plus no worries about foul play between point A and point B. The authorizes warn people not to take large amount cash to auto sales due to a common scam where Craigslist sellers steal the cash at gunpoint and drive away with the car.

You sound shocked that what you described would happen. Do you have any idea how stupid and / or naive 75% of the population is?

 

[EpicRider]

There have been numerous instances of bogus certified cashiers checks... that is why I insisted on cash and since I am not an expert on $100 bills, I deposited it with my bank and then signed the title.



Beware of cashiers check scams - Consumer Reports

Thanks pb4uski; appreciate your comments and that is my experience too after actually selling multiple cars to individuals. I have never had a problem, but you have to be careful.

Hopefully, the OP will get some value from all the comments & discussion.

 

[pb4uski]

So they were so prepared to drive three hours to buy it possibly sight unseen with ten grand, but it would be harder to arrive with a prepared cashiers check in case they wanted to buy it also? Not sure how many people would drive around with ten grand to "maybe" buy a car they hadn't seen in person yet, but that's certainly no more on the fringe then bringing a check just in case you liked it, plus no worries about foul play between point A and point B. The authorizes warn people not to take large amount cash to auto sales due to a common scam where Craigslist sellers steal the cash at gunpoint and drive away with the car.

Yes, not only were they prepared to, they did drive 3 hours to see it, test drive it, make me an offer and buy it. I was not willing to take the risk of a cashier's check, certified or not. Both could be created and bogus and I would be holding the bag. At least with cash I had little doubt that the payment was legit, particularly after the teller inspected the bills.

We met in a busy public place so the risk of my stealing the cash at gunpoint was mitigated.

A friend of mine recently bought a used plow truck on craigslist and paid $7k cash as well. Such transactions are not at all uncommon around here.

I did sell a boat for $7k earlier in the year and accepted a cashier's check, but it was drawn on a local bank that was known to me and I knew where the buyer lived and worked.

 

[Teacher Terry]

WE have always sold our own old cars. They are pretty bad by the time we are done but someone always needs a used car. The last 1 took me about 4 hours to sell. The only exception is my volvo because it has so many things wrong so I traded it to the dealer. I did not want to sell it to some poor person who would not be able to afford to fix it.

 

[RenoJay]

In the past I always sold private party but had a horrible experience with time-wasters and people who didn't understand the word "firm" in my price about a year ago so I took the best private party offer to my local Acura dealer, asked him to beat it by $100, and closed the deal. Also be VERY wary of Craigslist. I got at least two attempts to scam me from there.


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[Clone]

Why are people implying that a seller would have to pay sales tax? The buyer always pays a sales tax. You already paid sales tax on the car when you bought it.

This probably varies state to state.

If I sell a used vehicle for $10,000 to an individual, I get $10,000. They pay a use tax when they go to register it. I buy a new vehicle for $40,000, and I will pay a use tax on $40,000.

If I trade a vehicle and they allow me $10,000 for it, I pay $30,000 to boot on it. I pay use tax on that $30,000.

The use tax of 5% on the 10,000 would be $500. I would have to sell the old car for $10,500 to have the same cash at the end of the day.

There are a number of folks that believe they can sell vehicles for more than the dealers allow for trade, and they can make a better deal on a straight out cash purchase. Those are independent of the use tax situation and may be true.

Regarding double taxation, yup. You don't get credit for the use tax that the buyers has to pay on the used vehicle. But if you trade the vehicle to a dealer, it lowers the amount that you have to pay for use tax. So, you will pay more use tax if you sell the car yourself.

 

[Mulligan]

This probably varies state to state.

If I sell a used vehicle for $10,000 to an individual, I get $10,000. They pay a use tax when they go to register it. I buy a new vehicle for $40,000, and I will pay a use tax on $40,000.

If I trade a vehicle and they allow me $10,000 for it, I pay $30,000 to boot on it. I pay use tax on that $30,000.

The use tax of 5% on the 10,000 would be $500. I would have to sell the old car for $10,500 to have the same cash at the end of the day.

There are a number of folks that believe they can sell vehicles for more than the dealers allow for trade, and they can make a better deal on a straight out cash purchase. Those are independent of the use tax situation and may be true.

Regarding double taxation, yup. You don't get credit for the use tax that the buyers has to pay on the used vehicle. But if you trade the vehicle to a dealer, it lowers the amount that you have to pay for use tax. So, you will pay more use tax if you sell the car yourself.

In my state you can sell a car privately and deduct that amount from a car purchased from a dealer. Just bring the bill of sale for proof. On a private transaction, more than a few times "2 bill of sales" would be generated from one sale. A lower one for the buyer and a higher one for the seller.


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[pb4uski]

In my state you can sell a car privately and deduct that amount from a car purchased from a dealer. Just bring the bill of sale for proof. ....

+1 in our state as long as the sale happens within a certain time of the purchase (60 days I think). I'm doing that right now... I have a new car on order for delivery in December but unexpectedly sold my old car a few weeks ago... I'll get a credit and only pay tax on the excess of what I pay for the new car over what I sold the old car for.

 

[wyecrabber1]

I was just in Dallas for the holidays. Where in Texas are you and how are you asking?

 

[jerome len]

this post shows a lot of different experiences.......a lot of buyers are bottom feeders....they want to steal a car......many used cars for sale by owner have more owed on the car than it is worth....they want you to "take over payments" So.....if you have a nice car, as was stated on this post, find a friend who you trust and trusts you, sell it at a fair price or take it to CarMax. Save the hassle and time of getting/taking checks.....going to the DMV.....in California, vendors charge $300 to do all the paperwork......Maybe, some have time and enjoy the hassle experience of selling their own car but.......never.....never would I do other than sell a good car to a friend I trust.

 

[Golden sunsets]

Another positive experience with Craigslist. Listed a 2000 BMW 528i with 115,000 miles in 2014 at 6pm. I had my first response within 5 minutes. Agreed to show the car the next morning at 9 AM. Test drive and visit to the buyers car repair guy and had the cash in hand by 4pm the same day. Between the first response and 9am I had numerous emails and several very disappointed prospective buyers. Some were even irate that the car was not available. Guess I should have set it up as a bidding war.

 

[Tailgate]

Update

OP here....Based on several comments, I decided to give Carmax a shot at an appraisal. They came in just between the Edmunds and Kelley estimates so I sold it to them. I could have gotten 1k more in a private sale, but Carmax was hassle-free and easy to deal with. I avoided the tire kickers and wheeler dealers plus saving me time. Thanks everyone, for your comments. Now does anyone have any recommendations for a golf car ?

 

[travelover]

......... Now does anyone have any recommendations for a golf car ?

Yea, check with Carmax.

 

[latexman]

Try Cadillac Owners and Enthusiasts Forum Homepage - Over 130,000 Members

 

[45th Birthday]

I recently sold an older, low mileage Mercedes-Benz because we moved and didn't need that car anymore. I didn't have a lot of time to deal with this along with moving, so I asked the mechanic (non-dealer) who had been servicing the car if he knew anyone. He said he would make a few calls. We agreed on a price, maybe a little below blue book retail. I dropped the car off, his buyers came and looked and one was interested. We agreed on the sale date a few weeks in the future, I drove over with the car and the mechanic wrote me a check on his company's account, said he would get the money from the buyer. I asked him if he was getting a cut, and he said no, he just does this for people.


In addition to asking your mechanic, realtors also seem to always know people who are looking to buy stuff.

 

[JOHNNIE36]

Tailgate, the only thing I can say about golf carts is that Club Car is generally considered the best of the bunch. The Cadillac of golf carts. I had one and it served me well. I recently purchased a used EZGo and it's fine also.