"Elmo P. Shagnasty" > wrote in
:

> In article >,
> Tegger > wrote:
>
>> Up here, selling the old car yourself is a very expensive, since the
>> government rigged tax calculations to favor dealer trade-ins against
>> private sales. That's why private sales have almost totally dried up,
>> with a few exceptions.
>
> Hmmmm. Well, down here the deal is that tax is collected against the
> net transaction--that is, if the car you're buying is $20,000 and the
> dealer shows a $10,000 trade in, sales tax is collected on the $10,000
> difference.
>
> Therefore, you need to sell your car for more than $10,700 (7% tax
> rate) in order to make a private sale be better than a trade-in. It's
> a very simple evaluation. Then there's the hassle factor of a private
> sale, the value of which is unique to every individual. That'll add
> to what a private sale price would be. But there's still a very wide
> gap between a private sale price and what the dealer will ask for it
> once he's put it on the lot, so private sales are still a good deal.
>
> Is that kind of "rigged tax calculation" you're talking about?


Yes.


>
> It hasn't stopped or even slowed private transactions down here, not
> one bit.



Stopped them /dead/ here. Which was just what the dealers were hoping for
when they asked for that change.



--
Tegger