CARVANA

I accepted the CarMax offer of $41k for my truck. Surprisingly easy process. They're going to have to list it for basically original MSRP to make their average profit.

 

Just put my info into vroom to see what they offer compared to carvana. My offer for carvana was 37k for my 2020 TRD OR dclb about a week ago. 7500 miles on the truck and no extra packages.

 

25-30%? wow.....not sure about that.

 

Kinda wild how much the offers can vary... Mine was 30.5k for my 19 OR DCLB AT with 4k miles.

 

Yep, brother just bought a new escape, first new vehicle, 720 credit score, E3, approved for 0% @72 months, gifted him a hefty down payment and did all the work for him since he's stationed in AK and we bought here and TMO shipped it for him.

 

Dealer here offered me $49k for a $56k loaded rebel, but I don't need that much truck yet nor do I want to leave the Toyota family just yet until I see the new Tundra. Im like you constantly building, configing, browsing the old cars.com, etc.

 

whats your bro do in Alaska as an E3? USCG?

 

Against his big brother's advice after 11 years AD Air Force (me), lol, he left for basic in Feb as a SF, first duty station is Eielson, he needed a reliable vehicle for up there and as many here know including my family I have plenty of experience getting deals/buying so did the shopping for him and capitalized on the 0% and crazy deals back in May before the inventory and market went crazy. Managed to get him $8k for his 2010 Ford Explorer with 126k and $26k for his new Escape SE AWD (MSRP $32k), 0% at 72 months. Ford seems to be trying to dig themselves out of the no profit hole. Dad has had 2 Raptors and a few F150s, I had 2 rangers in high school, mom had explorers, never any big issues despite what all the fan boys here will say.

 

Vroom offer was $31,500. Carvana was $36,800. Now if I wasn’t 750 miles away from a carvana hub...

 

All this money dumpity is giving away. Just hope I'm worrying for nothing. Yeah there has been talk about cutting S.S. buy as much as 30% for several years. I think as long as Dems outnumber Reps that will never happen.

 

Very cool. Yeah I’m a Tacoma owner since 2009 and absolutely love my current truck but my towing capacity is growing will grow and I need a truck that can do it safely and efficiently. Honestly everyone is making reliable trucks at this point.

 

Went to a dealer interested in another car and told them about the Carvana offer. The dealer said that since my truck is a lease, if I were to sell it to Carvana, I'd be responsible for the taxes on selling it, which would cut the deal down by about $4,000 if I was understanding correctly. He said if I trade it in to a dealer, the taxes won't have to be paid.

 

This is true for taxes on the new vehicle.

If you buy a $40k vehicle, and your state sales tax is 10%. That's $4,000 in taxes on your price of your new purchase you would pay.

If you trade it in, you could get a value of $30k for your truck, they subtract that value from the $40k, and you only pay 10% tax on the $10k difference. ($1,000 in taxes) Obviously your tax rate probably isn't 10%.

But if Carvana is offering you $30,000 and your dealer is only offering $25,000, no sense going with the dealer when they are going to sell your car for $32k.

 

People believe the used car (and overall car market) will get flooded in the coming months.
Factors why:

1. Off lease cars will continue to come off lease.
2. Demand for cars is down.
3. 2021 models will be coming in.
4. People who lost their jobs in March-June will be having a bunch of cars re-possessed and this will only continue for a period of 6 months.

Lots of belief that we'll have a ton of repo'ed cars for sale by December and more going into early 2021.
Whether that means Tacomas go down in price by much or not... hard to say, but probably some.

 

Ah ok that makes sense. Mine is a little confusing because I owe about $35,000 on my truck, the dealer is giving me $33,000 and the car I'm getting is $31,000. So I should be better off than if I were to sell it to Carvana outright?

 

Also, for anyone thinking of selling their Tacoma, if you are offered more than what you originally paid for it, either through Carvana or similar, capital gains taxes comes into play. No such thing as a free lunch.

 

All the more reason not to disclose shit to the IRS.

 

While this is correct, what is the likelihood of the IRS finding out? Unless you are dealing in cash, is Carvana going to provide info to the IRS? I would think the likelihood would be very, very small. Also, with all the mods we owners make to our cars, it would be pretty hard to determine our true cost.

 

not sure tax fraud is something you want to be openly suggesting on public forums. There’s a couple insurance fraud threads on here that did not turn out great for the people trying to get away with something.

 

I can see where that may be inferred, but I am not recommending anyone commit fraud. I don't play games with Uncle Sam nor do I recommend anyone else do so either. Just stating that it would be hard for the IRS to discover and that it is not as simple as sales price minus purchase price. Besides, this is something that most casual purchasers/sellers would never think about come tax season, especially since the opportunity to sell your car for more than you purchased it for is almost unheard of (unless you are fixing up cars or selling classics).