Help-Driveway buying my car

[Caliroute1]

Has anyone Sold their car? I have an offer from Driveway but also from my local dealership. Driveway is a little more than the dealership, but I am wondering if anyone has any real world dealings with them.

I dont want to get into a situation where they dont actually pay off the car as was a problem with Carvana.

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[RickMachE]

There are many posts on this. Driveway for some takes about a month. Some reported getting payment, yet no pickup for a while. Driveway, while they work through the paperwork, lets you take other offers until you sign on the dotted line.

I sent you a DM.

 

[connoisseurr]

Ask your dealer, or another Ford dealer to match the offer. I was actually successful in getting an Autonation Honda dealership to match a driveway offer.

 

[callen01]

I sold my car through driveway about a month ago. The process is a bit slow. I believe it took nearly a month to get all the paperwork completed and then 2-3 weeks for them to get it picked up.
Their offer was more than I was expecting so I took a chance on them and it payed off. The only part that caused me concern was sending in my signed title before having the money in my account. It only took a couple of working days for the payment to hit my account and all was good after that.
This was my first time selling a car online and it was a very different experience, but I would do it again with Driveway now that I know what to expect.

 

[Parasmoney]

Are you going to buy a new car after selling the one you have? do you have positive equity meaning will you get more than what you owe for the car? keep in mind that if you have positive equity you technically have to pay tax on the profit. also if you’re going to buy a new car your tax liability will be higher. getting the dealer to up their offer and trade in your car for a new one might be a better deal in the long run and less hassle. If you are not going to buy a new car then just get as much money as you can. Have you looked at vroom or other online locations?

 

[Say Watt]

Carmax gave me the best offer - probably because I bought it from them. Driveway matched it so I didn't have to leave my house. The check hit my account the day they got the title. It did take them two weeks to pick up the car so it was in the way for awhile.

 

[Pushrods&Capacitors]

Are you going to buy a new car after selling the one you have? do you have positive equity meaning will you get more than what you owe for the car? keep in mind that if you have positive equity you technically have to pay tax on the profit. also if you’re going to buy a new car your tax liability will be higher. getting the dealer to up their offer and trade in your car for a new one might be a better deal in the long run and less hassle. If you are not going to buy a new car then just get as much money as you can. Have you looked at vroom or other online locations?

Hmmm, we don’t pay tax on vehicle equity here in TX, I wouldn’t think FL would be different in that regard but maybe?

 

[Parasmoney]

Hmmm, we don’t pay tax on vehicle equity here in TX, I wouldn’t think FL would be different in that regard but maybe?

I could be wrong but it's a federal tax. State tax might depend on where you live. But in any case, if you are buying av new car, getting the dealer to come up and trade in the car will save you some money on the tax you will pay for the new car.

 

[Pushrods&Capacitors]

I could be wrong but it's a federal tax. State tax might depend on where you live. But in any case, if you are buying av new car, getting the dealer to come up and trade in the car will save you some money on the tax you will pay for the new car.

Ok. There is no federal taxation of vehicle equity. And yes, trading in is a tax benefit in most, but not all, states. It is in TX.

 

[Parasmoney]

Ok. There is no federal taxation of vehicle equity. And yes, trading in is a tax benefit in most, but not all, states. It is in TX.

 

[ARK]

Ok. There is no federal taxation of vehicle equity. And yes, trading in is a tax benefit in most, but not all, states. It is in TX.

Technically, if you sell your car for more than you bought it for (up until now, a highly rare occurrence), I would think you would owe capital gains tax (short term or long term rate depending on if you owned it for a year or more).

But probably like early days of online buying when no sales tax was collected by pretty much anyone, I don't know if the IRS is looking out for EV buyers/sellers who are getting, e.g., $10,000 more than they went out of pocket for on their cars.

 

[Pushrods&Capacitors]

Operative word is “worth”, not “owe”. I.e., I sell my car that’s dealer/book valued at $60,000 for $60,000, no capital gains issue, even if I only owe $50,000.

Now, if I’m a collector with a car valued at $250,000 and I sell it for $275,000, I pay cap gains on that $25K profit.

 

[ARK]

Operative word is “worth”, not “owe”. I.e., I sell my car that’s dealer/book valued at $60,000 for $60,000, no capital gains issue, even if I only owe $50,000.

Now, if I’m a collector with a car valued at $250,000 and I sell it for $275,000, I pay cap gains on that $25K profit.

Many people are getting prices above MSRP, so far above that even when you count the sales tax and everything they paid, and ignore the tax benefits they received, they still are netting money.

 

[Pushrods&Capacitors]

Many people are getting prices above MSRP, so far above that even when you count the sales tax and everything they paid, and ignore the tax benefits they received, they still are netting money.

I know. But if market value is currently $64k on your $56K msrp car, and you sell for $64K, there’s no tax applicable just because market values are historically out of whack.

 

[moparguy]

Has anyone Sold their car? I have an offer from Driveway but also from my local dealership. Driveway is a little more than the dealership, but I am wondering if anyone has any real world dealings with them.

I dont want to get into a situation where they dont actually pay off the car as was a problem with Carvana.

What was the problem with Carvana?

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