I need some advice on selling a car.

Discussion in 'General Discussion' started by Luissa, Apr 14, 2009.

  1. Luissa
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    Luissa Annoying Customer Supporting Member

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    So I am selling a car on Craig's list, first time really selling a car. Before just sold to a friend or relative. Anyways the car is wrecked but I have gotten many messages because it is an Acura and has clean title since it didn't go through my insurance. I just want to get the most money I can since I now have a new car to pay for.
    Any advice would be great! Thanks
     
  2. Jon
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    Jon The CPA

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    Just go to kbb.com and find out what Kelly Blue Book values the car at. It will give you 3 prices: retail, selling it yourself, and trade-in. This is where buyers will look to get the price, so trying to go over that price too much won't do you much good. But you don't have to go under, because they will see the price is fair.

    On your CL ad, make sure to list all the features you selected from KBB. Go get the car detailed so it's real nice and clean, then take some pictures (plus it will look nice when buyers come to look at it).

    If you've replaced the tires or anything recently, include that in the ad. Of course, don't mention replacing anything that would only be replaced because of an accident. But spark plugs, shocks, tires, brake pads, wiring, anything along those lines...people will like to know that those things are in new condition.
     
  3. PoliticalChic
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    PoliticalChic Diamond Member

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    I don't know if this will be beneficial for you, but we always donate our used cars and get it written off on our taxes. May not be the right solution if you have a fairly new car though.
     
  4. Terry
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    Terry Shut the $%$ Up!

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    watch out for all the scam artist out there. Read up about them! I think there is a new scam out there that isn't reported yet. We have a car up on cars.com and I'm suspious of some things. We had two callers, both with a southern accent, both said they will pay cash. They string you along for at least 30 days and then they start the bank options and since you still owe on the car, they will say. "My bank will not let me transfer all the money until you sign the title over to the bank" Just stick to this: "Your car will not leave your drive way until you have the money in hand, and or the check clears the bank". You'll be safe that way.
     
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  5. Jon
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    Jon The CPA

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    I can't imagine the IRS valuing the car above its depreciated basis, which if its an older car can't be very much at all.
     
  6. PoliticalChic
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    PoliticalChic Diamond Member

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    It cuts our taxes, so it is beneficial in our case. I know they've changed the rules in recent years so that we can't take much of deduction as we once used to.
     
  7. PoliticalChic
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    PoliticalChic Diamond Member

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    Here's an interesting article on donating used cars:

    Does Charity Car Donation Still Make Sense Under Tougher IRS Rules?

    So in 2005, the IRS changed the rule. From then on, if your car is valued at more than $500, the deduction is limited to the charity's actual selling price. The donor must attach a statement of sale to the tax return in order to receive the deduction. (The charity is obligated to provide the statement within 30 days.) You are not entitled to know the deduction amount before donating your car.

    That leaves most donors in the dark — and may leave some businesses and charities in the red.

    ...

    Since the biggest loss for consumers is for those who own higher-value used cars, should they give up hope of donating? Not at all. Although the IRS has closed the loophole in the law, there is still a way to deduct full market value of your vehicle: If the charity uses the car itself to further its specific purpose.

    For example, the nonprofit organization 1-800-Charity Cars refurbishes donated cars and provides them directly to the economically disadvantaged. Its goal is to help the needy and welfare-dependent to become stable, self-sufficient, tax-paying citizens.

    "We've been going gangbusters," said CEO Brian Menzies. "We've given away cars for free to people in almost every state in the union, including Alaska and Hawaii."

    In contrast to charities whose actual mission doesn't involve cars, Charity Cars has seen a 50-percent increase in donations this year. Because owners of higher-value used cars are now turning to his organization, Menzies says, "The quality of the cars has been phenomenal." Cars that aren't roadworthy are auctioned off to pay for repairing the cars that go to struggling families.

    Note that the fair market value, in this case, must be determined by the donor. The government warns that, "The fair market value of the taxpayer's car may be substantially different from the 'Blue Book' value." Lower, that is. Edmunds' TMV Used Vehicle Appraiser provides an accurate valuation report of what a used car sells for in your specific neighborhood. This can be used at tax time and in the event of an audit.
     
  8. Jon
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    Jon The CPA

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    Plus, it's an itemized deduction. So if Luissa doesn't itemize, it won't do her any good.

    Besides, if the IRS valued the car at say $1,000 and your marginal tax rate were 25%, you've only made $250. Certainly the car could have been sold for more than that. Even if your car was valued at $5,000 by the IRS, it's probably really worth at least $6,000. $6,000 > $1,250 ($5,000 x MTR of 25%).
     
  9. Luissa
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    Luissa Annoying Customer Supporting Member

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    You cannot select poor on Kelley's Blue Book. My car has a lot of front end damage but still drives but not strait. But it is an acura integra and it could be used for it's shell or whatever, just say there is a market here.
    I am asking $600 but want $500, but I have already had 15 people send me emails and I want to make sure I get what I want out of it.
    And I would never donate the car, for one they wouldn't take it and I wouldn't want someone who doesn't know what happened to the car getting it.
     
  10. Jon
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    Jon The CPA

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    What have the people emailing you said? Are they willing to pay your asking price?

    At that kind of price, cash only is your best bet. If they bring the cash, they get the car. If you have that many people interested, you may even be able to get more than your asking price if you play your cards right.
     
    Last edited: Apr 14, 2009

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