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reubenray · 12-09-2016, 04:05 PM

I have read that if I was to trade in my motorhome it would cut down on the taxes for the new one. Is there a way to calculate how much the savings would be to compare to the difference of what I sold the motorhome myself for?

MSHappyCampers · 12-09-2016, 04:11 PM

Don't know about the tax thingy, but a dealer is probably gonna allow you the "dealer price", not the average retail that you may be able to get if you sell it yourself! Maybe someone can answer the tax question!

**CLIFFTALL** · 12-09-2016, 04:18 PM

If all else is equal ( the dealer gave you exactly what you could've gotten on your own ) then you save the tax rate on the trade amount. Possibly not true everywhere but in my State ( Fl ) it is. Now if you could get more selling it yourself it might net you more than the trade deal.

Mr_D · 12-09-2016, 04:19 PM

Quote:

Originally Posted by reubenray

I have read that if I was to trade in my motorhome it would cut down on the taxes for the new one. Is there a way to calculate how much the savings would be to compare to the difference of what I sold the motorhome myself for?

Only if your state taxes on the difference between new rig cost and old rig trade in. Not all states do it that way. WA does so I saved about $6,000 on the state tax.

miniceptor86 · 12-09-2016, 05:49 PM

I haven't traded in an RV but my recent vehicle purchase might give you something to think about. I was thinking my trade was worth 17,000 if I tried to sell it myself. I was offered 14,500 as a trade in. But it was actually 15,225 when adding in the sales tax savings. So now we're 1775 difference between what I thought I might be able to get and a sure thing right now. That would give pause for thought. If I was very realistic I probably would have jumped at the first offer of 16,000 for my trade. Now we're looking at 775. I would be hard pressed to want to put up the the hassle of selling it myself, taking the chance that the buyer was a butt head that would come back to haunt me about this and that that he overlooked and that I "should have pointed out". I'm not a "sales person" never have and never will have an interest or personality for sales. You maybe different.

reubenray · 12-09-2016, 05:57 PM

Quote:

Originally Posted by miniceptor86

I haven't traded in an RV but my recent vehicle purchase might give you something to think about. I was thinking my trade was worth 17,000 if I tried to sell it myself. I was offered 14,500 as a trade in. But it was actually 15,225 when adding in the sales tax savings. So now we're 1775 difference between what I thought I might be able to get and a sure thing right now. That would give pause for thought. If I was very realistic I probably would have jumped at the first offer of 16,000 for my trade. Now we're looking at 775. I would be hard pressed to want to put up the the hassle of selling it myself, taking the chance that the buyer was a butt head that would come back to haunt me about this and that that he overlooked and that I "should have pointed out". I'm not a "sales person" never have and never will have an interest or personality for sales. You maybe different.

This is the way I am looking at it. I will need to check to see if Alabama will do this. When I bought my current RV in Louisiana they did do this.

My time is worth something if I don't have to deal with the hassle of selling it myself.

Isaac-1 · 12-09-2016, 06:54 PM

You are near the gulf coast in southern Alabama, so it is still semi-prime RV buying season unlike up north. So why not get a trade in estimate, then try to sell it yourself with a higher asking price,if it does not sell in say 2-3 weeks trade it in.

HHIDan · 12-09-2016, 07:02 PM

About the tax... You can sell it yourself and then when you line up the buyer get him to pay your dealer directly (and you pay the difference). That way you pay tax on difference as if it was traded in. Some dealers call this an "accommodation sale".

twogypsies · 12-09-2016, 07:31 PM

Get a cash price for your present RV from the dealer. THEN ask about a trade-in. Trade-ins don't give you the best deal. You could consider taking it to PPL Consignment in Houston for them to sell it. We sold ours in one month. They recommend a suggested price but we upped it because everyone wants to come down on price. We got what we wanted. A couple from Florida flew in to buy it.

vsheetz · 12-09-2016, 07:36 PM

Quote:

Originally Posted by reubenray

I have read that if I was to trade in my motorhome it would cut down on the taxes for the new one. Is there a way to calculate how much the savings would be to compare to the difference of what I sold the motorhome myself for?

Varies with your state. Some charge sales tax on the full price, some on the difference price (this is where the savings come from).

Typically you will come out better selling yourself rather than trading. Makes for a cleaner buy of the new RV and you will get more money for the old RV. If you are in a state with sales tax savings, this of course factors into the equation.

Aside from money there are the considerations of whether you want to go through the time and effort to sell it yourself. Only you can decide if the money is enough to make you want to sell it yourself.

wingnut60 · 12-09-2016, 08:06 PM

Check out pplmotorhomes.com and RVTrader.com for comparable MH models to see
what others are asking for similar models. Use that number to figure out a potential tax savings on a trade-in. Then its up to you to know if you want to go thru the hassle of selling it yourself.

reubenray · 12-10-2016, 03:57 AM

If I understand this correctly if I get a trade in of $70,000 and my tax rate is 10%. Would that mean I would have to pay $7,000 less in sales tax?

This figure is just an easy to figure amount and has nothing to do with my MH. I don't plan on doing anything for a while yet. But I wanted to get in my head of how it works for when I am ready.

Where is the section located at PPL? I have looked for yet, but I have not found it yet.