Question about trade in

[Gavinmcc]

I've read a few posts where people talk about the benefit of trading in their car to Rivian vs Driveaway or others services.

Just wondering: is it a tax benefit? a convenience benefit?

I was thinking of selling mine to Driveaway and then using that cash to bring the price down on my R1T. But could easily wait to trade in to Rivian.

(i was thinking I might sell my car and go carless till the Rivian: wife has a car and I have my bike, though at 60 years old I'm not looking to spend another winter carless like I did in my fifties).

Just wondering....

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[rivianbuff]

I've read a few posts where people talk about the benefit of trading in their car to Rivian vs Driveaway or others services.

Just wondering: is it a tax benefit? a convenience benefit?

I was thinking of selling mine to Driveaway and then using that cash to bring the price down on my R1T. But could easily wait to trade in to Rivian.

(i was thinking I might sell my car and go carless till the Rivian: wife has a car and I have my bike, though at 60 years old I'm not looking to spend another winter carless like I did in my fifties).

Just wondering....

Depending on your state laws, if you sell to Rivian then you will only pay sales tax on the net new price. So if the Rivian is $75k and your trade is $30k... you pay sales tax on $45k which can be a big benefit. States like California don't allow this, but many do.

 

[EarlyAdptr]

In many (most?) states if you "trade-in" your vehicle to the organization who is selling you a new one - the trade-in value is deducted from the sales price when determining your sales tax liability. So as an example (using round numbers to keep it simple) if you purchased a $100k truck and your trade-in is worth $20k - and your state has a 10% sales tax:
a) Trade-In. You pay sales tax on the delta of $100k and $20k - so $80k. @ 10% that would be a $2k tax benefit.
b) You sell your used vehicle, collecting $20k. Then buy the new vehicle at $100k. No tax savings. Owe $10k in sales tax (10% of $100k).

Not sure about New Mexico.

 

[Gavinmcc]

Thanks!

Found this: The tax is 4% of the price paid for the vehicle less any trade-in credit.

So: Rivian is 79,000 approx, trade in is 30,000 approx. Tax is on 49k if I trade in or full 79k if I sell.
So I would pay 1,960 in taxes if I trade in, or 3,160 if I sell to other group.

I think,

 

[nc10]

Just wondering: is it a tax benefit? a convenience benefit?

I was thinking of selling mine to Driveaway and then using that cash to bring the price down on my R1T. But could easily wait to trade in to Rivian.

In my case, Driveway offered 25% more than Rivian, so worth checking, esp in states with low or no sales tax.

I had a 2016 outback, w 81K miles, based on comments here I got a quote from Driveway, also tried Carvana, Carmax, Rivian, and KBB.

Driveway offered $19.3K, though had no locations in our area, but was willing to buy and pick up my car sight unseen "in a few weeks".

Cavana offered $19.2k, and came to my house to pick up the car. The original appt was postponed 1 week, but the original appt was scheduled before some layoffs, and was set for just 2 days after they announced a bunch of layoffs. Still, they picked up my car at my house on a Saturday, and payment was direct deposited by Monday morning. A very good experience. (Based on several simillar cars on their website (year, mileage, model, trim), I expect they will list at ~ $23-24K.)

UPDATE 5.31 Noticed Carvana now has listed my car at $22,990.

Carmax offered $17.4K

KBB indicated $17.2K, and referred me to local dealers. The first referral, a local GMC dealer, said he could only pay $15.4k. I didn't try the other local dealers.

Rivian also offered $15.4K

For me, in South Carolina, the sales tax is 7%, but with a max of only $500. So not trading affects my sales tax NOT at all. If I didn't have the quicker Carvana option, I would have went with Driveway. Their process seems sound, I went as far as submitting a copy of my title, etc, so they could send me the paper work for the sale. But they couldn't provide firm timing.

I suspect they may be in similar shape as Carvana, with sales slowing and inventory building.

We are down to one car, my wife's, until my R1T is delivered, scheduled in a week.

 

[NY_Rob]

Thanks!

Found this: The tax is 4% of the price paid for the vehicle less any trade-in credit.

So: Rivian is 79,000 approx, trade in is 30,000 approx. Tax is on 49k if I trade in or full 79k if I sell.
So I would pay 1,960 in taxes if I trade in, or 3,160 if I sell to other group.

I think,

Don't overthink it..... you pay full sales tax if you don't trade in to Rivian, depending on your state/county if your trade in to Rivian you pay sales tax on the Rivian price minus your trade in amount.
Pretty straight forward....

 

[Bloodypiker]

For me it came down to money. I would have much rather traded it with Rivian for the convenience and tax relief. Hell, I would have had it in my garage today going that route. Wish they could have got closer, but the 11K difference including tax benefit made up my mind to sell it to Driveway.

Driveway is really slow getting the paperwork out right now so timing is key.

 

[Gavinmcc]

Well Driveaway just offered me 5k more tha Carvana…so I’m hella tempted (not sure these crazy used prices will hold too much longer?).

down side is I’m an Oct to Dec delivery. I’ve gone 6months easy without a car, but I’m not sure I’m gonna love it if Dec becomes Feb

 

[Gavinmcc]

Don't overthink it.....

but that is my superpower

 

[Inkedsphynx]

Tax benefits as others have said. Best offer I got was from Driveaway and Rivian matched it exactly so it was a no brainer for me.

 

[TheSasquatch]

Tax benefits as others have said. Best offer I got was from Driveaway and Rivian matched it exactly so it was a no brainer for me.

What car are you trading? I've got a '21 Model 3 Performance and trying to decide whether Rivian will give me what Driveway offered. I'm wondering in advance because I need to get the check sent to Rivian since my truck is now on its way! If it's close to Driveway, I'll take it (of course - cuz taxes). But some people are saying it was almost $10K less than Driveway!

 

[Gavinmcc]

Chevy Bolt

not sure what the difference in price will be as I can’t get a Rivian quote till I get one built

Driveway gives you an answer in minutes

 

[Inkedsphynx]

What car are you trading? I've got a '21 Model 3 Performance and trying to decide whether Rivian will give me what Driveway offered. I'm wondering in advance because I need to get the check sent to Rivian since my truck is now on its way! If it's close to Driveway, I'll take it (of course - cuz taxes). But some people are saying it was almost $10K less than Driveway!

21 Defender 90. Unlike so many on these forums, I've only got 1 car (though guilty of a few bikes lol).

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