Used Mach E Value (Sale/Trade-in) Question

[lucky13]

I have enjoyed my Mach E for the last 8 months and planned to keep it for many years, but my personal situation is changing and I will most likely need to part with it in the near future.

I'm getting estimates from Carvana, CarMax, etc. in the range of $37K-$39K, which is a fair bit below what I owe on it.

Has anyone sold or traded in their Mach E recently for well above those above amounts?

Details:

2022 Mach E Premium AWD Extended Range Battery with about 4,750 miles. Grabber Blue with light space gray interior. PPF, ceramic, and tux mats.

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[Mopey]

I sold one of my Mach Es in April. It had nearly identical specs and mileage as yours. I received similar values from Carmax and Carvana. In the end, I sold it to a Ford Dealer for $46,000. They later resold it for $48k.

Market values are down somewhat now, though.

 

[Godawgs]

In Georgia as well and that’s the going rate here in Gwinnett. Wife got unexpectedly pregnant (doctors told us we couldn’t have kids again after our twins, oops…) and we suddenly needed an SUV so I traded it. The company I work for gets the GM supplier discount so that’s what we were looking for, but the Chevy dealer we were looking at buying a Suburban from wasn’t too interested in the Mach-E on trade. They reached out to 4 Ford dealers in the area asking if they’d buy it from them and 3 of them said they wouldn’t touch it due to the rapid drop in value. One did, so we made the trade and the supplier discount helped offset some of the negative equity. Loganville Ford listed it for $48,000, and dropped it to $47,200 within a week and then it sold 10 days later. Would never have sold it otherwise, absolutely loved the vehicle, but God has a funny sense of humor. Best bet may be to sell it private party if you’ve got the time, may be able to get more than what the tax offset would be on trade.

 

[BigMach-E]

In Georgia as well and that’s the going rate here in Gwinnett. Wife got unexpectedly pregnant (doctors told us we couldn’t have kids again after our twins, oops…) and we suddenly needed an SUV so I traded it. The company I work for gets the GM supplier discount so that’s what we were looking for, but the Chevy dealer we were looking at buying a Suburban from wasn’t too interested in the Mach-E on trade. They reached out to 4 Ford dealers in the area asking if they’d buy it from them and 3 of them said they wouldn’t touch it due to the rapid drop in value. One did, so we made the trade and the supplier discount helped offset some of the negative equity. Loganville Ford listed it for $48,000, and dropped it to $47,200 within a week and then it sold 10 days later. Would never have sold it otherwise, absolutely loved the vehicle, but God has a funny sense of humor. Best bet may be to sell it private party if you’ve got the time, may be able to get more than what the tax offset would be on trade.

Funny thing about this: if you are in a negative equity situation, you don’t pay taxes on the private sale. Dealerships count on folks not being aware of this.

 

[OnceYouGo]

I have enjoyed my Mach E for the last 8 months and planned to keep it for many years, but my personal situation is changing and I will most likely need to part with it in the near future.

I'm getting estimates from Carvana, CarMax, etc. in the range of $37K-$39K, which is a fair bit below what I owe on it.

Has anyone sold or traded in their Mach E recently for well above those above amounts?

Details:

2022 Mach E Premium AWD Extended Range Battery with about 4,750 miles. Grabber Blue with light space gray interior. PPF, ceramic, and tux mats.

I've ran mine through the usual suspects (CarMax, etc). The trade in was sad. Ultimately, I'd list it on cars.com and use KeySavvy.com to facilitate the sale. Makes life easy on private party with this amount of money changing hands.

 

[Mach1E]

Funny thing about this: if you are in a negative equity situation, you don’t pay taxes on the private sale. Dealerships count on folks not being aware of this.

I’m not sure what you mean.

I know the rules are different in every state. But I think what he was talking about is saving sales taxes on the trade in value when they buy another car and trade in the Mach E.

If you sell private party (in Florida for example), you wouldn’t save taxes when you buy a new car.

What you owe on a loan (negative equity) has nothing to do with sales tax here (Florida).

Curious how that works where you live though.

 

[BigMach-E]

I’m not sure what you mean.

I know the rules are different in every state. But I think what he was talking about is saving sales taxes on the trade in value when they buy another car and trade in the Mach E.

If you sell private party (in Florida for example), you wouldn’t save taxes when you buy a new car.

What you owe on a loan (negative equity) has nothing to do with sales tax here (Florida).

Curious how that works where you live though.

Ah, but if you are being offered equal or less than you owe, you wold not be putting anything from that transaction towards the new car, so you would still be paying taxes on the full cost of the new car, right?

 

[Godawgs]

Funny thing about this: if you are in a negative equity situation, you don’t pay taxes on the private sale. Dealerships count on folks not being aware of this.

Count me in the group unaware, thanks for the info

 

[c max]

I ordered a '23 Premium on 2-10-23, at that time the trade in was approx $30,000 on my '21 Select SR RWD with 25000 miles approx.....when Premium came in on June 28 value had dropped to about $24000.....these approx vales were pretty much across the board what was being given.....I was getting several incentives that helped the overall deal......my dealer had quite a selection of Mach e's "on the lot" and had even set aside at least 2 to use as loaners......with supply up and sales down this is what happened.....

I didn't like it but it is what it is......when we moved into our 120 year old house in 1975, one of the first things we did was put in an in the ground pool....friends and relatives told me it was a bad decision, it would shrink the size of the buying group when I sold, it would lower the selling price, etc......well we have had almost 50 years of enjoyment with the pool, I'd say a pretty good deal.....same with the Mach e, I had 2 1/2 years of enjoyment......but I still would have liked a little bit more as a trade in, haha....

 

[Mach1E]

Ah, but if you are being offered equal or less than you owe, you wold not be putting anything from that transaction towards the new car, so you would still be paying taxes on the full cost of the new car, right?

But that’s not what you said. You said “you don’t pay taxes on a private sale.”

Still not sure what you meant.

As far as owing $$ when trading in, I honestly don’t know how they handle that. If it’s treated like two separate transactions (the trade in and the payoff of the old loan), you would save taxes on the trade in.

Example-

New car price 50k
Trade in 25k
Old loan 30k.

Pay sales tax on 25k, finance 55k.

I don’t think the amount you finance or pay off has anything to do with sales tax.

 

[Mr.GVAK]

Yeah, the prices kind of tanked, but those numbers are very low. I am in a similar situation and looking to part with my 22 Select with Tech/Comfort Package (7800 miles) and I got similar values a couple of days ago. Your MME should get more. I am in DFW area, and sometimes the values could be a bit different depending on the state/location.

 

[RKinWA]

When I bought my used 21 GT in March, blue book for trade was 58k, when I traded it in June for my new one blue book had dropped to 43k. I still owed 46k, so I told them I wouldn't do the deal unless they paid off my trade (without adding the 3k to the vehicle), since I had bought the other one from them, they agreed. Tesla, with their price cuts, and excess inventory has killed the values.

 

[RickMachE]

Funny thing about this: if you are in a negative equity situation, you don’t pay taxes on the private sale. Dealerships count on folks not being aware of this.

Ah, but if you are being offered equal or less than you owe, you wold not be putting anything from that transaction towards the new car, so you would still be paying taxes on the full cost of the new car, right?

There are two (or more?) tax situations for selling a used vehicle.

The least common (except in 2021 and 2022), is selling the vehicle for a profit, in which case you owe capital gains tax, either short (less than a year) or long term (a year or longer). We sold our 2021 Mach-E a few days after it was a year old, for a profit, and had to pay long term capital gains tax (federal). States may treat it as simply income.

The other tax is related to netting the selling price of a vehicle against the purchase price of a replacement vehicle. Some states require that you do the transaction through your dealer, and subtract the value of the trade-in. Some states give you full credit, some give you partial credit (and some give you none).

Some (a very few) states allow you to sell a vehicle privately and take a sales tax credit when you buy the new vehicle. This is not the norm.

 

[Mach1E]

There are two (or more?) tax situations for selling a used vehicle.

The least common (except in 2021 and 2022), is selling the vehicle for a profit, in which case you owe capital gains tax, either short (less than a year) or long term (a year or longer). We sold our 2021 Mach-E a few days after it was a year old, for a profit, and had to pay long term capital gains tax (federal). States may treat it as simply income.

The other tax is related to netting the selling price of a vehicle against the purchase price of a replacement vehicle. Some states require that you do the transaction through your dealer, and subtract the value of the trade-in. Some states give you full credit, some give you partial credit (and some give you none).

Some (a very few) states allow you to sell a vehicle privately and take a sales tax credit when you buy the new vehicle. This is not the norm.

Agreed.

And as far as I know, what you owe (negative equity) has nothing to do with the sales tax calculations. So I’m still not sure what he was suggesting.

 

[GreaseMonkey]

@lucky13, someone ought to really love the MME to buy a used one for more money than a new Tesla Model Y (after accounting for fed tax rebate). The market price for used EV is likely to drop further with additional MME and other EV production capacity coming online. That's why you're seeing dealers very cautious about selling. Trade-ins at high 30s are accounting for that anticipated decline.

As others mentioned, you are better off doing a private sale, especially that your vehicle has been pampered with a full spa treatment that a private buyer might value (certainly more than a dealer would). Best of luck.

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