I recently bought a new Nissan Altima. I traded in my old Altima and I made the mistake of telling the dealership how much I owed on my loan. I was told they would give me the amount that I owed on the loan for the trade in. I waited a couple of weeks to purchase and in the interim I received phone calls (voicemails) from the dealership stating they would give mean extra $1000 for my car. When I went into the dealership I renegotiated the purchase price so of course the trade in value changed. They were only going to give me an extra $300. Ok fine. I reside in New York so when purchasing a new car and trading another car in simotaneously you only get taxed on the difference. While in the finance office for the dealership the amount being financed seemed too high so I inquired and some money was taken off. One of the things they said to me seems very unscrupulous. The finance manager stated they were paying off my loan but my trade in value included the tax reduction. It wasn't clear to me what that meant but since they adjusted the price and took off some fees I continued on with the sale. Now looking over my paperwork they gave me the agreed upon trade in value minus the trade in tax savings! Do I have any sort of recourse or is this a done deal because I signed the paperwork?
Trade-In Scam
- Thread Starter Gabriella
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disagreeable
Well-Known Member
The appropriate tax is figured this way.
Original price $22,500
Trade-in -4,500
Sale price subject to tax $18,000
Original price $22,500
Trade-in -4,500
Sale price subject to tax $18,000
I was told I was going to be given $14,700 for my trade. I only owed $14,400. They subtracted the tax reduction (approx$1267) from what they actually gave me for my trade. They did this in such a way that I did not notice at first because they added the $1267 to my new car price.
mightymoose
Moderator
It's a done deal.
disagreeable
Well-Known Member
Your number do not make sense. Your trade credit would have resulted in a tax savings of just over $950 at 6.5%. Dealers can adjust the numbers to allow you to qualify for financing, by showing a down payment etc... For example, knowing the factory to dealer incentive on my new truck, I negotiated it into the deal by receiving $7500 for my 1999 Pontiac trade-in, instead of what they wanted to give.
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