Quote:
|
Originally Posted by dkl
Ahhhhh...I think you nailed it.
|
Don't agree.
The paper loss on one vehicle (the trade) cancels out the paper profit on the other (new) vehicle. It nets out. There is no difference on the tax you pay (as long as you are taxed on the difference) or the tax the dealer pays (there is the same profit on the combined two car deal, either way).
They are simply protecting the price point for the new vehicle transaction. Average transaction prices get tracked, and this shows up as a full list transaction instead of a discounted one.
__________________
2007 X3 3.0si, 6 MT, Premium, White
Retired:
2008 535i, 6 MT, M Sport, Premium, Space Grey
2003 X5 3.0 Steptronic, Premium, Titanium Silver
2002 325xi 5 MT, Steel Grey
2004 Z4 3.0 Premium, Sport, SMG, Maldives Blue
|