So, I LOVE this car, but being an outdoor enthusiast it is not really working for me. I have wanted a WRX since they came out and I'm seriously thinking of trading my tC in for a used WRX wagon.

My question is, here and there I have seen posts about people getting offered a lot of $$$ for the tC as a trade. In fact, KBB lists my '05 with 9k miles with a trade in value of $15.9k. Pretty crazy since I only paid $16.5k for the car.

I know I could sell it privately, but the tax break I get for trading my car would be over $1300. With my last trade (a 94 Integra) I was able to get RETAIL kbb value for it, thanks to a bit of haggling

Any advice?

 

I don't think anyone can make that decision for you. If you like the WRX... get it. There's no telling what you'll actually get for a trade price. It may or may not be close to KBB and only the dealer could tell you what it will be. And that will even vary by dealer.

 

I know, I was just kind of wondering if anyone HAS tried trading it in, and what their experience has been.

 

get the outback.....a little larger, i think its long enought you can sleep in the back...

 

Well, if the dealer you go to is dumb enough to pay higher than what you paid for (without tricking you into a terrible deal), sure....

 

WRX all the way baby. i love that car, and depending on my financial situation, i may either pick up an 06 WRX or an 06 Altima SE-R

 

Just got an offer for a trade, from a Kia dealership that happens to have an '03 WRX in stock:

$15.5k for my car!! Pretty darn good I must say.

 

Just curious what you mean by the tax break of $1300 by trading in? Do you mean because you won't have to claim the car sale on your income tax returns?

 

I am in the same spot your in, i have RS1.0 and i really want a STi or a WRX.

 

No. Lets say I buy a used WRX for $18k. The dealer gives me $15.5k for my car. Since the remainder due is $2,500, that is all that I pay state Sales Tax on. So, I pay $200 in sales tax, versus $1500 if I didn't trade and paid the entire $18k for the car.

Thats how it works in WA anyways. Not sure about other states.

-Nikki

 

WRX's are hella fun man, esp th new 06's youll be ____ing AMAZED at the shifter after driving the tc. tiny as hell and sooo smooth

 

Also, get a VIP letter or find a good dealer adn you can get a WRX TR for like 22,300

 

Nah I'm getting a used one. The '06s are fugly. Grille and taillights are hideous. Right now I'm looking at an '03 wagon.

 

I want a 350Z, i might trade my in if i get a better job.

 

I was also wondering about the "tax break". I don't think there is any tax break unless it is something "business related".

And remember if you trade your car for something else, you have all the costs of titling, taxes, etc, etc....

Kevin

 

In most states, if you purchase a NEW car and trade a vehicle in, the amount for the trade comes off of the NEW vehicle price before your tax is calculated.

example:
Price of new car=10,000
Trade in=2,100
Taxable Total=7,900
(Calculate tax and add it to 7,900)

However, on a used car it is different, at least here. A trade in value basically acts as nothing more than a down payment. You pay all the tax for the used car, and use your trade as money down in a sense.

example:
Price of used car=10,000
Taxable Total=10,000
(Calculate tax, add it to 10,000 and then subtract 2,100 from that number)

It is different from state to state....make sure you check your state's policies!

 

I double-checked with the WA State DOR:

"If you trade-in a like-kind item to reduce the
amount you pay for the tangible personal property,
sales tax is due only on the amount due after the
value of the like-kind trade-in is subtracted.
For example, you purchase a car for $20,000. The
dealer accepts your current car as a trade-in valued
at $5,000. Therefore, you owe sales tax on
$15,000. NOTE: If the dealer gives you $3,000
cash instead of subtracting that amount from the
new car price, then you have not traded-in your
vehicle. In such a case, sales tax is due on the full
$20,000 price of your new vehicle."