Selling our newish 2013 M5 GT, 9K mi

[TonyC]

the mazda247 ad is here: http://www.mazdas247.com/forum/showthread.php?123842758-2013-Mazda5-Grand-Touring-only-9K-mi , asking for $19500, but all I need is $18250 or so to cover what's left on the loan. basically you're avoiding tax/title/licensing in lieu of that super new car smell (though it sorta still smells new).

The car can be seen in Los Angeles County (rotates between Cerritos, Baldwin Park and Monterey Park, to be exact). It only has 9130 miles right now, and the tires are only 2.5 months old. it's gone through 2 oil changes already, both on full sync 0w20 (or whatever the OEM specs are). and there is, of course, plenty of warranty left.

it's been perfect, but we're restructuring our finances (ie, I'm too cheap to pay a car note)

 

[90210]

Sorry to hear you sell. But buyer will have to pay a sales tax on the asking price So you are not avoiding a sales tax.

You are paying a slightly less sales tax, than buying new.

 

[TonyC]

lesbihonest, you'd be paying a something like $500 for friendly tax fees versus $2K in non-negotiable. plus reg is paid for.

it's not like we haven't been buying used cars on the cheap forever.

 

[Silentnoise713]

You might have a tough time selling that. You cannot get good financing for a private sale (not compared to mfg promos ) and anyone with 20k cash will likely get a new car. Good luck selling. I couldn't sell a one old year old SRX and had to sell it to Carmax. GLWS.

 

[Clicky]

lesbihonest, you'd be paying a something like $500 for friendly tax fees versus $2K in non-negotiable. plus reg is paid for.

it's not like we haven't been buying used cars on the cheap forever.

Tax would be on the selling price, say LA County, which is 9%, which would be closer to $1600-1700.

Also,imo, the $18250 asking price isn't cheap, imo. I paid $18.5k for my 2013 Mazda5 Touring CPO with sunroof and satellite package with 1k on the odo, so I have 47k limited and 99k powertrain warranty remaining when I bought the car. I had 0.9% financing. Now, your price would be OK for dealer but for private party, it seems high. And as above, interest rate would be higher.

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[sac02]

lesbihonest, you'd be paying a something like $500 for friendly tax fees versus $2K in non-negotiable. plus reg is paid for.

Huh? Where I'm from, sales tax is sales tax, whether you pay it at a dealer or private party sale doesn't matter... And registration? Yay, $25 saved! (may be more in CA, I understand. But it's not a significant amount in the purchase of a car).

...asking for $19500, but all I need is $18250 or so to cover what's left on the loan...
...it's not like we haven't been buying used cars on the cheap forever.

OK...??? I'm calling you out for not knowing the ins-and-outs of selling a used car. It has NOTHING to do with what you have left on the loan, or what you "need" out of the car. You could walk into a dealer and get a brand new, zero mile, full warranty, newer model year (with the associated higher resale value), for like $2k more than your “need” price, and $1k more than your asking price. http://www.mazdas247.com/forum/show...ed-questions&p=6318287&viewfull=1#post6318287

Sorry, but you should have put down more so you're not upside down on your loan (although only slightly) and should be preparing to take a loss on your “need” price so that you can off-load this car. Or plan on finding a sucker that didn’t do his research and assumes this is a good deal because “MSRP” for a 2014 is $25k and he is “saving” $7k.

 

[Silentnoise713]

500 for “friendly tax”… buying used cars “on the cheap”

come’on guys you have to read between the lines Assuming LA is 9% tax, you can do the backwards math and figure it out. And buyer beware, gov’ment wants their tax monies and if they see something fishy in the transaction, buyer gets the prize . It’s a (somewhat safe with proper documentation/justification) gamble but the risk is on the buyer. DMV wasn't created yesterday.

And I'm sure he is looking for the right buyer (cough *sucker*), rightfully so. There is no giveaway here. He should get as much as someone is willing to pay. Reality will hit him soon. Selling a 1-2 year old car is the damn worst thing…

 

[sac02]

It's becoming less and less common to be able to claim that you sold a $20k car to a random person for $5k. In addition to being fraud, and the associated risk if the bureaucracy catches you (not likely, I'll admit), many states are implementing flat rates for vehicle values. Texas did this a couple years ago with the SPV (standard presumptive value). Now instead of telling the DMV how much you bought this used car for ("Of course I bought this 2012 Ferrari for three thousand bucks!"), they basically have a "blue book" value, and you would have to go out of your way to prove otherwise and avoid the tax.

 

[Silentnoise713]

but what if said car supposedly needs engine work, electrical work, body work, etc?? DMV is not State Farm (yet?) where they are going to send an agent to inspect the car.

CYA is all I'm saying.

 

[90210]

CA is different than MO, MA, NC, RI, where I have lived and had cars registered. One of my associates "bought" his 2012 GTR with 1500 miles for "17k" to the DMV.

DMV asked why price low, he said tranny broken, that was the end of it.

In life there is always risk. As was mentioned there can be "Friendly" tax.

As also mentioned, VERY hard to sell a 1-2 year old car. If its a M3 of 911, you have a cash buyer, its different.

Average mazda 5 owner isn't rich. Looking for payments..and cheap car.

In any event, good luck with the sale

 

[Vasy]

It is not that hard to sell, just price it right around $14k - $15k and it should sell. About 99.4% of vehicles are upside down on the load first 5 years compare to the value.
Here we have to write and post with government as to why sale price below 10% of their book and if they don't believe you, they will just send you bill to buyer for the difference.
Plus insurance will only pay to the declared value of the vehicle, so you buy it for $5k and crush it some how, they will give you $5k, so buyer ends up the biggest looser by trying to save on tax.
This can only be false if it was a family sale, where there is reasonable reason for low price paid.

 

[TonyC]

You might have a tough time selling that. You cannot get good financing for a private sale (not compared to mfg promos ) and anyone with 20k cash will likely get a new car. Good luck selling. I couldn't sell a one old year old SRX and had to sell it to Carmax. GLWS.

thanks for this (and everyones') input. i was (sadly) perfectly aware of the sales environ (typical m5 buyers being frugal parents looking for low payment, local used car market, mazda5 != M3/911GT, ad nausea.) when i decided to offload the car. as far as putting money down on the car, with the stupidly low interest rate, there was no reason to. yes, i totally understand it's beyond silly to get rid of a new car in less than a year, especially due to depreciation. let's just say there's were alternative forces at work, mainly that thing called "wife", else I would've been very content rolling around in the refrigerators with wheels that I don't need to pay for. (cryhard)

sac02, you're reading this too literally. obviously a used car's price/value isn't what anyone "owes" on the car note, i'm just acting like a "seller". you guys have been nothing but helpful though!

 

[Clicky]

It is not that hard to sell, just price it right around $14k - $15k and it should sell. About 99.4% of vehicles are upside down on the load first 5 years compare to the value.
Here we have to write and post with government as to why sale price below 10% of their book and if they don't believe you, they will just send you bill to buyer for the difference.
Plus insurance will only pay to the declared value of the vehicle, so you buy it for $5k and crush it some how, they will give you $5k, so buyer ends up the biggest looser by trying to save on tax.
This can only be false if it was a family sale, where there is reasonable reason for low price paid.

I am in California, and when I totalled my old car years ago, the insurance paid me more than what I paid for the car. Granted it was only a few hundred more. Also in California, unless you have gap insurance, if a brand new car is totalled then there is a good chance that you would still owe money even after the insurance payout. Gap insurance from my insurance company is around $5-10 per 6 months. Don't buy from the dealer who will probably charge you $300-500 or more. You only need gap insurance for the first few years at most typically.

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[Clicky]

thanks for this (and everyones') input. i was (sadly) perfectly aware of the sales environ (typical m5 buyers being frugal parents looking for low payment, local used car market, mazda5 != M3/911GT, ad nausea.) when i decided to offload the car. as far as putting money down on the car, with the stupidly low interest rate, there was no reason to. yes, i totally understand it's beyond silly to get rid of a new car in less than a year, especially due to depreciation. let's just say there's were alternative forces at work, mainly that thing called "wife", else I would've been very content rolling around in the refrigerators with wheels that I don't need to pay for. (cryhard)

sac02, you're reading this too literally. obviously a used car's price/value isn't what anyone "owes" on the car note, i'm just acting like a "seller". you guys have been nothing but helpful though!

Yeah 0% or close to it makes sense to put as little down as possible. I understand that there are other factors at work, we are just advising you as to the high price and that it isn't financially beneficial to sell so soon. But I understand completely your situation.

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[90210]

Tony

Can you get a new wife and keep the 5 instead?

 

[Clicky]

Tony

Can you get a new wife and keep the 5 instead?

Probably would be more costly than selling the 5.

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[TonyC]

(rlaugh)

no kidding. she's never divorcing me dudes, not going to let her. (CA no-fault, communal property state, yo. You know this, 90210). This lil mazda is getting das boot to the kerb for sure. She wants an Odyssey.

Probably would be more costly than selling the 5.

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[Vasy]

Let's just say there's were alternative forces at work, mainly that thing called "wife", else I would've been very content rolling around in the refrigerators with wheels that I don't need to pay for. (cryhard)

Why not go back to the Mazda dealer and ask for a trade on the auto 5 or auto mazda cx5 or 5? It would be way easier and you will not have to pay taxes on the value of your car as it is a trade, save hassle and most likely get reasonable good trade in value.

Even if they give you $15k (should be a bit more) it is like selling private for $16k as you save about $1k in taxes.

 

[90210]

(rlaugh)

no kidding. she's never divorcing me dudes, not going to let her. (CA no-fault, communal property state, yo. You know this, 90210). This lil mazda is getting das boot to the kerb for sure. She wants an Odyssey.

I know I know Worth a try man. I should have written your prenup...then you could have kept the 5!


ANother one lost to the Oddy. Touring or Elite model? Good choice.

Why not go back to the Mazda dealer and ask for a trade on the auto 5 or auto mazda cx5 or 5? It would be way easier and you will not have to pay taxes on the value of your car as it is a trade, save hassle and most likely get reasonable good trade in value.

Even if they give you $15k (should be a bit more) it is like selling private for $16k as you save about $1k in taxes.

In CA, there is no tax savings trading in at dealer. He is lucky to get 13-14K at dealer.

 

[Clicky]

I know I know Worth a try man. I should have written your prenup...then you could have kept the 5!


ANother one lost to the Oddy. Touring or Elite model? Good choice.





In CA, there is no tax savings trading in at dealer. He is lucky to get 13-14K at dealer.

He could try Carmax. Still losing money but probably would get more than what he would from the madza dealer

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