Advice on Buying Used?
04-26-2015, 10:34 PM
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CLS55
Advice on Buying Used?
So, interesting situation has arisen and I would like to seek some more informed opinions on it.
Came across this wonderful car, low miles, CPO and fair price. Normally, I don't look at small dealerships for used vehicles, I'm always leery of the purchase and what condition they obtained it in, plus who's the shop mechanic and are they fixing issues in house with duct tape? Anyhow, I called on this car, spoke to the dealer and he explained his service as this.
He's a dealer, has his dealers license, but operates as a service for a handful of clients he has buying and sell their vehicles for them. He hunts down what his client wants, handles the paperwork, negotiations and logistics. Not totally unheard of right?
He says to me, this particular vehicle because it has a CPO he did not take into inventory because that will void the Cert. And most of the time he doesn't generally take cars into inventory.
He goes on further to explain by, what I will call "brokering a deal", his client will not have to pay taxes. This car is located in CA. Anyway, Im not a CPA and I know Cali has funny (not fun) vehicle laws, but a car is depreciating asset and if you purchase it for more than you sell it then you don't get taxed as a seller.? Not only that but I don't recall explicitly paying taxes on any cars I've sold. I mean its reported ; )
So this guy wants me to wire him the $$$, he will pay off his clients lean, then he will send me the title yada yada... So i say I/my bank whatever will not wire any funds to anyone but the person on the title in ownership of the vehicle and lean holder. And at the time of transfer of funds I expect the title in my hand. I said Ill fly out we can go to your clients bank and exchange the money for the slip there on the spot.
He goes on again about the tax implications and if I wanted to do that he would raise the car 4,000+ to cover taxes.
What are your thoughts on this, fishy? Yes/no?
Came across this wonderful car, low miles, CPO and fair price. Normally, I don't look at small dealerships for used vehicles, I'm always leery of the purchase and what condition they obtained it in, plus who's the shop mechanic and are they fixing issues in house with duct tape? Anyhow, I called on this car, spoke to the dealer and he explained his service as this.
He's a dealer, has his dealers license, but operates as a service for a handful of clients he has buying and sell their vehicles for them. He hunts down what his client wants, handles the paperwork, negotiations and logistics. Not totally unheard of right?
He says to me, this particular vehicle because it has a CPO he did not take into inventory because that will void the Cert. And most of the time he doesn't generally take cars into inventory.
He goes on further to explain by, what I will call "brokering a deal", his client will not have to pay taxes. This car is located in CA. Anyway, Im not a CPA and I know Cali has funny (not fun) vehicle laws, but a car is depreciating asset and if you purchase it for more than you sell it then you don't get taxed as a seller.? Not only that but I don't recall explicitly paying taxes on any cars I've sold. I mean its reported ; )
So this guy wants me to wire him the $$$, he will pay off his clients lean, then he will send me the title yada yada... So i say I/my bank whatever will not wire any funds to anyone but the person on the title in ownership of the vehicle and lean holder. And at the time of transfer of funds I expect the title in my hand. I said Ill fly out we can go to your clients bank and exchange the money for the slip there on the spot.
He goes on again about the tax implications and if I wanted to do that he would raise the car 4,000+ to cover taxes.
What are your thoughts on this, fishy? Yes/no?
04-30-2015, 03:22 PM
#2
Member
^Fishy.
I only know WI laws, but that is definitely a deal I would not do. Broker dude keeps the money, doesn't pay off the lien, now you cannot register the car....no thank you.
I only know WI laws, but that is definitely a deal I would not do. Broker dude keeps the money, doesn't pay off the lien, now you cannot register the car....no thank you.
10-31-2016, 05:26 PM
#3
Super Member
So, interesting situation has arisen and I would like to seek some more informed opinions on it.
Came across this wonderful car, low miles, CPO and fair price. Normally, I don't look at small dealerships for used vehicles, I'm always leery of the purchase and what condition they obtained it in, plus who's the shop mechanic and are they fixing issues in house with duct tape? Anyhow, I called on this car, spoke to the dealer and he explained his service as this.
He's a dealer, has his dealers license, but operates as a service for a handful of clients he has buying and sell their vehicles for them. He hunts down what his client wants, handles the paperwork, negotiations and logistics. Not totally unheard of right?
He says to me, this particular vehicle because it has a CPO he did not take into inventory because that will void the Cert. And most of the time he doesn't generally take cars into inventory.
He goes on further to explain by, what I will call "brokering a deal", his client will not have to pay taxes. This car is located in CA. Anyway, Im not a CPA and I know Cali has funny (not fun) vehicle laws, but a car is depreciating asset and if you purchase it for more than you sell it then you don't get taxed as a seller.? Not only that but I don't recall explicitly paying taxes on any cars I've sold. I mean its reported ; )
So this guy wants me to wire him the $$$, he will pay off his clients lean, then he will send me the title yada yada... So i say I/my bank whatever will not wire any funds to anyone but the person on the title in ownership of the vehicle and lean holder. And at the time of transfer of funds I expect the title in my hand. I said Ill fly out we can go to your clients bank and exchange the money for the slip there on the spot.
He goes on again about the tax implications and if I wanted to do that he would raise the car 4,000+ to cover taxes.
What are your thoughts on this, fishy? Yes/no?
Came across this wonderful car, low miles, CPO and fair price. Normally, I don't look at small dealerships for used vehicles, I'm always leery of the purchase and what condition they obtained it in, plus who's the shop mechanic and are they fixing issues in house with duct tape? Anyhow, I called on this car, spoke to the dealer and he explained his service as this.
He's a dealer, has his dealers license, but operates as a service for a handful of clients he has buying and sell their vehicles for them. He hunts down what his client wants, handles the paperwork, negotiations and logistics. Not totally unheard of right?
He says to me, this particular vehicle because it has a CPO he did not take into inventory because that will void the Cert. And most of the time he doesn't generally take cars into inventory.
He goes on further to explain by, what I will call "brokering a deal", his client will not have to pay taxes. This car is located in CA. Anyway, Im not a CPA and I know Cali has funny (not fun) vehicle laws, but a car is depreciating asset and if you purchase it for more than you sell it then you don't get taxed as a seller.? Not only that but I don't recall explicitly paying taxes on any cars I've sold. I mean its reported ; )
So this guy wants me to wire him the $$$, he will pay off his clients lean, then he will send me the title yada yada... So i say I/my bank whatever will not wire any funds to anyone but the person on the title in ownership of the vehicle and lean holder. And at the time of transfer of funds I expect the title in my hand. I said Ill fly out we can go to your clients bank and exchange the money for the slip there on the spot.
He goes on again about the tax implications and if I wanted to do that he would raise the car 4,000+ to cover taxes.
What are your thoughts on this, fishy? Yes/no?
