Vehicle trade-in with Rivian

carcrazydoc

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I understand Rivian will be taking trade-ins. For those few who have purchased thus far, how does it work? What is Rivian using to determine trade-in value? Reason I ask, supposedly in line for a launch edition R1S and have a low mileage, nice Cayenne GTS which currently is in high demand. Contemplating selling privately versus trade-in to Rivian for sales tax credit (7% in Indiana). Estimate trade-in on www.kbb.com to be approximately $58k and can private sell for about $60k but unsure what Rivian will be using to determine their offers. Thanks in advance, Sean
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electruck

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In terms of valuation, this will work exactly the same as trading at your local dealership. You will always get more from a private sale than a trade. Based on the details you shared, the tax credit would seem to be larger than the amount you would gain from private sale.
 

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The biggest question is will Rivian trade-ins even count towards sales tax credits if you live in a state that does not allow direct sales? Depending on the rules of the state, you may end up forfeiting the ability to claim a credit if you are purchasing out of state. Make sure you verify with Rivian and your state's DMV/SOS office before assuming any trade-in tax credit.
 

yizzung

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What sales tax credits are tied to trade-ins? I was planning to sell privately but it’s news to me that I should be thinking about trading in… Is it like an incentive to get an EV and get rid of an ICE?
 

SANZC02

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What sales tax credits are tied to trade-ins? I was planning to sell privately but it’s news to me that I should be thinking about trading in… Is it like an incentive to get an EV and get rid of an ICE?
Some states deduct the cost of the trade in and only charge on the difference for the new car.

California is not one of them so it would not matter for you.
 

Temerarius

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Some states deduct the cost of the trade in and only charge on the difference for the new car.

California is not one of them so it would not matter for you.
Yup, you will want to look into your local state laws on this.

Washington state for example does the calc in sales tax based on the sale amount after trade.

That said, I have NOOOOO IDEA what the whole direct sales thing does (when I bought my Tesla, they already had the carve out here in in WA).
 

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I looked up the rules for Michigan after my initial warning and found that while Michigan DOES offer the trade-in tax credit on out of state purchases, the maximum trade-in value that can be applied towards the credit is $7,000, which equates to $420 in tax at 6%. Thus, a private party sale would probably still be more favorable here. Again, make sure to check the rules in your home state as they are all different.
 

timesinks

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Yup, you will want to look into your local state laws on this.

Washington state for example does the calc in sales tax based on the sale amount after trade.

That said, I have NOOOOO IDEA what the whole direct sales thing does (when I bought my Tesla, they already had the carve out here in in WA).
I think we're ok on trade ins even if the transaction officially occurs out of state: https://apps.leg.wa.gov/wac/default.aspx?cite=458-20-247.

It doesn't mention anything about where the transaction takes place, and specifically says sales and use tax are calculated the same way.
 

yizzung

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Some states deduct the cost of the trade in and only charge on the difference for the new car.

California is not one of them so it would not matter for you.
I also own a place in Colorado, which does seem to only tax the delta… hmm. Sales tax on cars is also more than double in CA (7.25) vs CO (2.9)… hmm. State tax credits appear to be a wash, although it’s hard to tell if we’ll even qualify in CA (complicated, means tested, limited fund pool) vs CO (simple). Hmm.
 

TAZ

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I believe they'll be using KBB which is a Cox Automotive company. I'd guess the number you're seeing up there is their offer estimate? I've heard that CarMax will offer somewhere in the middle between Public and Private $. Check on the spot. I'll be looking at all three options also, not sure I want to deal with private sale at this point. It's not worth getting that extra $1-2K to me and not needing to dealing with people on craigslist!
 

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I also own a place in Colorado, which does seem to only tax the delta… hmm. Sales tax on cars is also more than double in CA (7.25) vs CO (2.9)… hmm. State tax credits appear to be a wash, although it’s hard to tell if we’ll even qualify in CA (complicated, means tested, limited fund pool) vs CO (simple). Hmm.
Colorado registration fees are outrageous though. I'm expecting to pay about $1700 for the first year registration on my R1T. It slowly goes down but not until year 9 is where it gets to a reasonable level.
 
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carcrazydoc

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In Indiana, you only pay the sales tax on the difference in sales price regardless of the state in which the sale occurs as long as the vehicle that is being traded in is the same as the selling dealer. Hence a $57k (excellent condition trade-in value on KBB.com) will result in an additional $3990 of benefit.

The real question is will Rivian/Cox Automotive individually evaluate the vehicle to determine vehicle status as good ($53k), very good ($55.4k) or excellent ($57k) or just blanket consider all as "good".
 

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I believe they'll be using KBB which is a Cox Automotive company. I'd guess the number you're seeing up there is their offer estimate? I've heard that CarMax will offer somewhere in the middle between Public and Private $. Check on the spot. I'll be looking at all three options also, not sure I want to deal with private sale at this point. It's not worth getting that extra $1-2K to me and not needing to dealing with people on craigslist!
I recall reading that Rivian was using Cox to handle trade ins. So that makes sense.
 

Rhidan

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I also own a place in Colorado, which does seem to only tax the delta… hmm. Sales tax on cars is also more than double in CA (7.25) vs CO (2.9)… hmm. State tax credits appear to be a wash, although it’s hard to tell if we’ll even qualify in CA (complicated, means tested, limited fund pool) vs CO (simple). Hmm.
You have to pay County & City tax as well in Colorado. In Denver, the combined tax is listed as 8.81% (calculated on the net purchase price).
 

yizzung

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Colorado registration fees are outrageous though. I'm expecting to pay about $1700 for the first year registration on my R1T. It slowly goes down but not until year 9 is where it gets to a reasonable level.
$832 is what the CA calculator is estimating, so that's a small net win for CA.
 
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