Found vehicle at distant dealer - better to DX to local?

[Quickstep192]

I’ve found a truck I really like at a dealer about 300 miles away. It’s a leftover ‘24, so I’m hoping they’re eager.

The way I figure it, I could see if my local dealer could do a dealer exchange which would simplify trading my existing ride, or I could try to do a long distance deal and have it shipped.

Who would be more motivated to work with me on a deal? The guy with the truck on his lot, or my local guy?

related: should they be as motivated to deal on the ‘24 as I think?

Thanks for any guidance. It’s hard for an amateur buyer to know what makes these guys tick.

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[professorkx]

I would think the dealer with the 2024 would be happy to see it gone from their lot, but not sure you will get the same great deal from your local dealer. It’s worth talking to your local dealer and seeing if they are interested. If not, time for a 600 mile round trip to get a new rig.

on a side note, I bought my 2024 while traveling this winter in the south. The discounts from Jeep and dealers were just too good to pass up, so found the one I wanted, made the purchase and had it shipped to my house almost 2000 miles away. Dealers just want to sell cars, IMHO there is no allegiance buying from a local dealer anymore like it was a couple of decades ago…unless your local dealer isn’t part of chain of dealers. Locally owned dealers are becoming uncommon…

 

[Zachanadandy]

300 miles is all of 4 hours, work the deal via phone and email and take a roadtrip for a day. Gets rid of the trade in, I think you'll get the best deal that way, and you get some seat time right out the gate in the new ride. If you're looking for the best deal I don't think a dealer transfer is the way to go. That shows you're eager for that specific vehicle. Dealing directly you can even use the distance/fact that you'll have to burn a whole day to buy their truck as a bargaining chip.

 

[ShadowsPapa]

I’ve found a truck I really like at a dealer about 300 miles away. It’s a leftover ‘24, so I’m hoping they’re eager.

The way I figure it, I could see if my local dealer could do a dealer exchange which would simplify trading my existing ride, or I could try to do a long distance deal and have it shipped.

Who would be more motivated to work with me on a deal? The guy with the truck on his lot, or my local guy?

related: should they be as motivated to deal on the ‘24 as I think?

Thanks for any guidance. It’s hard for an amateur buyer to know what makes these guys tick.

Why not ask the dealers? We can only speculate, and you'll only get opinions - not facts, because no one here is those dealers and no one know the facts involved.

Check out the deal with your local dealer - get their best offer with that vehicle, then talk to the dealer that has it, and get their best. Then figure out if your drive time and gas money is worth the drive if the deal is better over there.

Nothing like getting facts straight from the horse's mouth than all of the speculation in the world you'll get here.

300 miles is all of 4 hours, work the deal via phone and email and take a roadtrip for a day. Gets rid of the trade in, I think you'll get the best deal that way, and you get some seat time right out the gate in the new ride. If you're looking for the best deal I don't think a dealer transfer is the way to go. That shows you're eager for that specific vehicle. Dealing directly you can even use the distance/fact that you'll have to burn a whole day to buy their truck as a bargaining chip.

^^^^^^

There may be something to this - so TALK TO THEM! And yes, use the distance if necessary.

 

[trekkar]

For a 2024 I hope your getting at least 30% off msrp depending on the model people were getting that much off last fall and in some cases up to 35%. Depending on the model the 25s start with almost a 5k discount off of MSRP so you may be able to get one for the same price.

And I would just drive the 300 miles to go pick it up and do the trade or check with a local carmax/carvana to get a price for your current rig.

 

[ShadowsPapa]

check with a local carmax/carvana to get a price for your current rig.

Those outfits always "underbid" the local dealers on trades - sometimes by thousands. Then if you sell it, depending on where you live, you have to pay tax on the entire purchase price, not just the difference after a trade.
So be VERY careful using those places.
My dealer offered me something like 4K more than Carvana, and then I'd have to have paid another 2K extra in taxes. So it was a huge win trading it over selling it.
On my Silverado it was a different story - the local Chevy dealer bought my truck outright for more than the Jeep dealer was offering, and pretty much outdid what the online buyers were offering. So in that case, I came out a few hundred ahead because the Chevy dealer's purchase more than made up for the extra tax I had to pay since I no longer had a trade-in vehicle.
For my areas, the online outfits are a laughable joke. Almost insulting "offers".
Only Driveway was reasonable.

 

[Quickstep192]

Interesting… Here Carvana is offering a lot more than I’ve been offered for trade from dealers. Carmax offers haven’t been quite as good.

In addition to the tax disadvantage, there’s a little bit of hassle associated with selling the car to one place and buying from another.

Carvana’s model sounds really simple: they deliver a car and take yours away. However, you kind of need to buy the car sight unseen.

 

[Beach-Jeep]

I’ve found a truck I really like at a dealer about 300 miles away. It’s a leftover ‘24, so I’m hoping they’re eager.

The way I figure it, I could see if my local dealer could do a dealer exchange which would simplify trading my existing ride, or I could try to do a long distance deal and have it shipped.

Who would be more motivated to work with me on a deal? The guy with the truck on his lot, or my local guy?

related: should they be as motivated to deal on the ‘24 as I think?

Thanks for any guidance. It’s hard for an amateur buyer to know what makes these guys tick.
[/QUOTE

Be careful buying from a dealer that is not local I have a 2023 gladiator that has purchased used from a Toyota dealer and had several local dealers refuse to do warranty work since I didn't buy it there. Check with your local dealer to see if they will honor the factory warranty ]

 

[MaxJT]

@ShadowsPapa I’m not a tax expert and this isn’t tax advice, but I don’t think that’s correct. I don’t think you need to pay taxes on the sale of a used personal-use vehicle unless you make money on the deal (sell for more than you initially paid)

edit: based on the numbers you provided, I assume that you’re talking about income tax. On the other hand, there may be a sales tax benefit to trading your vehicle at the dealership where you make your new car purchase.

 

[Quickstep192]

You don’t have to pay taxes on the sale of a car unless you sell it for more than was paid originally.

However, if you apply a trade to the cost of a new car, the sales tax is reduced.

For example, if you buy a car for 50k, you’ll pay taxes on 50k

If you buy a car for 50k and your trade is worth 30k, you’ll pay taxes on 20k

At least that’s how it works in Maryland.

 

[AD Mojave]

If you can work a strong deal on the phone, I would make a trip out. If you can wait, 25 models will likely have deeper discounts this fall when 26 roll out. I flew out and drove mine home earlier this year.

 

[Tom2020Glad]

I'll agree with the deal over the phone comments. I made several deals over the years over the phone prior to long drives to get the vehicles that I wanted at the time. You can work out most of the details before you even see the car, but beware that they won't usually hold a vehicle for you until they know you're on your way there. Never had an issue doing it that way personally.

 

[ShadowsPapa]

@ShadowsPapa I’m not a tax expert and this isn’t tax advice, but I don’t think that’s correct. I don’t think you need to pay taxes on the sale of a used personal-use vehicle unless you make money on the deal (sell for more than you initially paid)

edit: based on the numbers you provided, I assume that you’re talking about income tax. On the other hand, there may be a sales tax benefit to trading your vehicle at the dealership where you make your new car purchase.

I'm talking about the SALES tax.
Here in Iowa, you pay tax on the vehicle you buy, just like if you buy a shirt at the store. A percentage of the final sales price.
If you buy a new car without a trade, you pay the tax on the full vehicle price (whatever you and the dealer agree you pay for the car)
If you buy a new car and have a trade, and the new car is 40,000 and your trade is worth 10,000, you pay tax only on the 30,000 difference, as you have already paid tax on the car you are trading in (assumed)
If you sell a vehicle, there is a sales tax involved. If you have a garage sale, you are supposed to pay sales tax on your proceeds from the garage sale. It's hard if not impossible for the state to force that, but on a vehicle, you are supposed to write on the title what the sale price was, and the buyer pays the tax at time of transfer. Many people write a bogus number - something small, but not so small as to get the attention of the state. For our classics, $1 or $10 is often written as the selling price so the buyer only pays pocket change in tax.

So - I'm not talking income or capital gains tax, I'm talking sales and use taxes.

 

[RCott77]

ICarvana’s model sounds really simple: they deliver a car and take yours away. However, you kind of need to buy the car sight unseen.

I have bought, sold and traded, several vehicles from Carvana and although you buy it sight unseen you are able to do a full inspection, they have a 7 day change your mind policy and offer a 30 or 60 day warranty so that if anything is found or comes up during that time you file a claim and they take care of it. I have done all of the above with various vehicles I have purchased from there. They are by far the smoothest transaction I have ever had buying a vehicle.

Like drive to a dealership and sit around haggling with the finance people for hours or, sit at home and wait for the truck to pull up go out check out your new ride, sign some papers and wave goodbye to your old ride in less than 30 min?

 

[ShadowsPapa]

You don’t have to pay taxes on the sale of a car unless you sell it for more than was paid originally.

However, if you apply a trade to the cost of a new car, the sales tax is reduced.

For example, if you buy a car for 50k, you’ll pay taxes on 50k

If you buy a car for 50k and your trade is worth 30k, you’ll pay taxes on 20k

At least that’s how it works in Maryland.

Exactly - guess I didn't see your post before I just responded.
it's not income or capital gains taxes at play here, it's sales and use taxes, at least in Iowa and your state sounds like Iowa in that regard.

I did pay 13,000 for my 70 Javelin and sold it for 25K but it went to TX and I had receipts enough to show it wasn't really a gain after all of the parts and labor that went into it - they'd have had a lot of trouble proving it went up that much in value with no improvements.

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