Hey all,
Looking at buying a challange car. I've found a few contenders for $1500-2000. I just wanted to clarify...If I were to buy a car for $2000 SALE price at a dealer or private party will it be ok if the taxes+title+fees end up being more than $2000 total?
also, do you have to actually sell everything to recoup up to the $1000 value or can you just use FMV and take the parts off your car? Example, FMV of rear seats is determined to be worth $40 but nobody is buying them, can you remove them and have $40 in your budget up to the $1000)
thanks everyone.
Sales tax and title/plate fees are exempt from budget. Other dealer fees probably need to be included in the transaction amt, but be specific and make a logical argument one way or the other for each fee. If you can't take the car home without paying the fee, it's part of the price, and unless it's exempted specifically, it's in the budget.
You CAN sell parts back to yourself at FMV (check the rules for the newly updated section of how to establish FMV), but currently it's a bit of a grey area practice because many people feel there is a potential for abuse of the rule. Remember the unwritten rule which is "don't be a dick", and you'll be fine.
BTW, welcome to the madness! I'm looking forward to seeing what you end up with.
Thanks for the replies...
So when "haggling" with a private seller. Do you save the AD from the car sale? If so, how do you document that you got it cheaper than was advertised?
Thanks again,
looking to pick something up soon.
hand written receipt, or photocopy of the back of the title documenting sale price works.
I get a hand written receipt, a photo of the FB ad and I'll even take a picture of Facebook messaging with a seller to document things.
