Advice on Selling Mach-E FE Early

[Griddlez]

Posting here so that I could solicit some advice... I intend on trading in my First Edition when my GT order shows up sometime around thanksgiving. Would it be worth while now trying to sell my FE early and in the process try and shop around for a dealership that would give me the best purchase price? Alternatively, should I just wait to trade in when the GT shows up?

On paper, to me this sound like a decent idea because I don't need the extra car right now and it would make my dealer and others have to complete with one another on price for this seemly hot commodity.

Some other considerations: Am I missing anything tax wise? If I sell the car like this will it appear as "income" I need to record on my taxes? Would I also have to pay any kind of sales tax or am I thinking of that backwards and the dealer buying it instead would have to? I imagine I am still upside down on the car still (after rolling taxes into the purchase earlier in the year) so I don't expect to make a profit. In-fact I will probably have to cut a check for them to take the car from me, to fully pay off the loan.

Good idea, bad idea? Somewhere in-between? Thanks for any advice.

------------------
UPDATE:
------------------

As promised, I am reporting back on the outcome of this adventure. To recap, I got the shipped nonfiction for my GT order, schedule for delivery next month, and I decided to look into how good of a deal I could get selling my First Edition (FE) ahead of buying the GT next month.

I checked places for offers from Carvana and Vroom to local Ford dealerships. I ended up getting the best offer from a local dealership. Vroom offered 46K (honestly I don't think they knew how to appraise the car or how to deal with a FE), Carvana was somewhat close to the local dealerships but ultimately a local offered 58200$ for the car which was the best offer. The deal is done and I sold for only 1200 below MSRP.

Hopefully this info is helpful to any of those looking to trade in or out-right sale their Mach-E's. Guess I better change my profile pic from the blue pony to something else as I am waiting for my GT so show up next month.

Sponsored

 

[TRP]

If you trade it in, you only pay sales tax on the difference between your trade value and cost of the new car. If you walk in with cash to put down on new car that sales tax benefit is not there.

My son just bought a new car, dealer offered him $7000 for his trade. He got $11000 from Carvana. So in his case it was worth selling and then getting the new car. You can try this route since there is no obligation. Just upload a couple of pics and they shoot you an offer, take it or not at that point.

It may also be beneficial to list your FE on auto trader or another similar site and see what kind of offers come in. This may work out if time is on your side

 

[generaltso]

If you trade it in, you only pay sales tax on the difference between your trade value and cost of the new car. If you walk in with cash to put down on new car that sales tax benefit is not there.

Not necessarily. Depends on your state. I sold my car to Vroom weeks before buying the MME and still only had to pay sales tax on the difference. Then I did the same thing again for my wife’s RAV4 Prime.

 

[RickMachE]

If you trade it in, you only pay sales tax on the difference between your trade value and cost of the new car. If you walk in with cash to put down on new car that sales tax benefit is not there.

My son just bought a new car, dealer offered him $7000 for his trade. He got $11000 from Carvana. So in his case it was worth selling and then getting the new car. You can try this route since there is no obligation. Just upload a couple of pics and they shoot you an offer, take it or not at that point.

It may also be beneficial to list your FE on auto trader or another similar site and see what kind of offers come in. This may work out if time is on your side

Not every state lets you credit the entire trade in for sales tax. A handful of states give you no credit. Some states, like Michigan, severely limit your credit - in 2021 to $7,000 of trade in value, i.e. tax of $420.

It appears here OP is, Missouri, does give full credit.

 

[TRP]

Not every state lets you credit the entire trade in for sales tax. A handful of states give you no credit. Some states, like Michigan, severely limit your credit - in 2021 to $7,000 of trade in value, i.e. tax of $420.

It appears here OP is, Missouri, does give full credit.

I wasn't aware of that. I figured all states were the same in that regard.

 

[Griddlez]

Thanks for the advice. Pretty clear that trying to sell it off ahead of time wouldn't be a bad idea. I am going to request offers from vroom, carvana, and my dealer and see who gives the best price. It may take a few days but I'll report back in on how it looks!

 

[ZuleMME]

Thanks for the advice. Pretty clear that trying to sell it off ahead of time wouldn't be a bad idea. I am going to request offers from vroom, carvana, and my dealer and see who gives the best price. It may take a few days but I'll report back in on how it looks!

Just remember that tax credit is extra money above and beyond the Trade in credit. So take your tax rate and multiply times your highest trade value of the 4 (vroom, car max, carvana, and dealer) and that’s your max tax credit. Next I personally take the max tax credit divided by 2 and subtract that from the maximum trade value. If the dealers offer is at least that good, take it. Otherwise ask for the difference. This effectively splits the tax credit with the dealer which is a compromise deal and generally fair. You *could* do better, but certainly I’d advise against doing worse. Normally the dealer tries to lowball hoping you won’t haggle over the tax credit amount.

 

[ncaadam]

Thanks for the advice. Pretty clear that trying to sell it off ahead of time wouldn't be a bad idea. I am going to request offers from vroom, carvana, and my dealer and see who gives the best price. It may take a few days but I'll report back in on how it looks!

I priced my premium AWD ER at 3k miles for $52k on Vroom a few weeks ago. Thought that was pretty good

 

[Griddlez]

I priced my premium AWD ER at 3k miles for $52k on Vroom a few weeks ago. Thought that was pretty good

I agree, I think that is indeed super good. That's like what only 2-3kish under MSRP for a prem AWD ER? Like insanely good actually.

 

[Griddlez]

As promised, I am reporting back on the outcome of this adventure. To recap, I got the shipped nonfiction for my GT order, schedule for delivery next month, and I decided to look into how good of a deal I could get selling my First Edition (FE) ahead of buying the GT next month.

I checked places for offers from Carvana and Vroom to local Ford dealerships. I ended up getting the best offer from a local dealership. Vroom offered 46K (honestly I don't think they knew how to appraise the car or how to deal with a FE), Carvana was somewhat close to the local dealerships but ultimately a local offered 58200$ for the car which was the best offer. The deal is done and I sold for only 1200 below MSRP.

Hopefully this info is helpful to any of those looking to trade in or out-right sale their Mach-E's. Guess I better change my profile pic from the blue pony to something else as I am waiting for my GT so show up next month.

^^ Adding this info to my starting post for quick reference.

 

[agoldman]

sounds great.

 

[benk016]

How many miles did you have on the FE with that offer?

 

[Griddlez]

How many miles did you have on the FE with that offer?

In the 1900's.

 

[benk016]

In the 1900's.

Thanks for the info! Mine has almost 10k on it right now. And my Estimated delivery date on the GT is 10/31

If I can get an offer just a few thousand under MSRP I'll definitely be trading.

 

[MachTee]

As promised, I am reporting back on the outcome of this adventure. To recap, I got the shipped nonfiction for my GT order, schedule for delivery next month, and I decided to look into how good of a deal I could get selling my First Edition (FE) ahead of buying the GT next month.

I checked places for offers from Carvana and Vroom to local Ford dealerships. I ended up getting the best offer from a local dealership. Vroom offered 46K (honestly I don't think they knew how to appraise the car or how to deal with a FE), Carvana was somewhat close to the local dealerships but ultimately a local offered 58200$ for the car which was the best offer. The deal is done and I sold for only 1200 below MSRP.

Hopefully this info is helpful to any of those looking to trade in or out-right sale their Mach-E's. Guess I better change my profile pic from the blue pony to something else as I am waiting for my GT so show up next month.

^^ Adding this info to my starting post for quick reference.

So accounting for the $7500 federal tax credit, you're $6300 ahead. Wow. I might have to look into it, I wouldn't mind upgrading to a GT for next to nothing ?

Forgive my ignorance, are all FE's equipped with AWD and the extended battery?

Sponsored