To trade in or to sell

[Hal88]

Well the time has come for me to part ways with my beloved X5, it's time to get a bigger suv due to family growing.
Question is should I just trade it in and get nothing for it, or, try to sell it on my own.
What do you think?
Oh, BTW it's a 01 4.4 with 131500k miles.

[MINIz guy]

I would put it up for a private party sale and if you don't get any bites, then trade it in. I wouldn't hurt to try it yourself and get a few hundred dollars more.

[askhao]

The only reason why I would trade it in would be to save money on taxes.

[gregy]

Correct me if I am wrong but there is no trade in tax credit in California.

[Hal88]

Yea, I never heard of tax savings when trading in a car.....if it is true then I will lean more towards trading it.

[Icer006]

Don't you save in sales tax on the car you're purchasing? It's not a tax credit we're speaking of, it's saving on sales tax on the replacement car.

[sunny5280]

Originally Posted by Hal88

Yea, I never heard of tax savings when trading in a car.....if it is true then I will lean more towards trading it.

Here in Colorado the trade in value is deducted from the selling price of the new vehicle when it comes to calculating taxes. In my tax area I save an additional 8% based on the trade in amount. If the difference between private party sale is less than 8% then it makes more sense to trade.

With that said it might be better to trade it in given the price of gas. Private party market may be limited for a low MPG vehicle such as the X5.

[Hal88]

I figured with gas prices and the way the X5 eats gas I'll have a hard time selling it.....mine seats in the garage mostly because of the gas it consumes . And as u all know is so sweet to punch it and get going, I always love that growl that comes with that engine when u hit the gas pedal.

[HPIA4v2]

Originally Posted by Hal88

Well the time has come for me to part ways with my beloved X5, it's time to get a bigger suv due to family growing.
Question is should I just trade it in and get nothing for it, or, try to sell it on my own.
What do you think?
Oh, BTW it's a 01 4.4 with 131500k miles.

I'd sell it on my own, done that for 3-4 times now and it didn't take a lot of effort (but still cautious dealing with someone from internet). I used Craigslist a couple of times now, just be honest about the condition and takes a lot of good pictures.

At the end though, the car will sell what the local market will bear, GL

[X5Dawg]

Originally Posted by sunny5280

Here in Colorado the trade in value is deducted from the selling price of the new vehicle when it comes to calculating taxes. In my tax area I save an additional 8% based on the trade in amount. If the difference between private party sale is less than 8% then it makes more sense to trade.

Same case in GA - you are only taxed on the price difference between the new vehicle and the trade-in value.