I have a buddy that wants to trade cars with another buddy....

bagwell · 05-14-08, 07:45 AM

can this be done at a dealer to minimize the sales tax....??

don't dealers do this for like $500?

I forgot what they call it.....thanks for any help.

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PhilipMSPT · 05-14-08, 09:33 AM

I presume that the banks are still the lienholders, right?

bagwell · 05-14-08, 09:39 AM

Quote:

Originally Posted by PhilipMSPT

I presume that the banks are still the lienholders, right?

one has a lienholder, the other holds the title.

...I should ad - in Texas they use presumptive values for your car when registering (they type your VIN into their system and it gives them a value which your are taxed on).

the vehicles are 200? BMW 530i and a 2006 VW Jetta diesel.

whoster · 05-14-08, 09:41 AM

what the deuce...

what a strange trade....

bagwell · 05-14-08, 10:08 AM

he's going to brew his own biodiesel.

Mbenz528i · 05-14-08, 10:10 AM

Quote:

Originally Posted by whoster

what the deuce...

what a strange trade....

You can say that again!

Anyone want my 1996 Jeep Cherokee for a 2003 Mini?

bagwell · 05-14-08, 10:26 AM

the 530i is the last gen with about 82000 miles I think, showing a book value under $16K; Jetta books at $18K....or so I was told.

Faymester · 05-14-08, 11:08 AM

i dunno if you can do this if poth parties don't own their cars but:

the two friends could 'gift' the cars to each other, or sell them to each other for $1 ... there are special forms for both cases ... but since one guy doesn't own his car i dunno if he can 'gift' it

litesoarer · 05-14-08, 11:49 AM

It doesn't matter if they "sold" the car for $100,000 or $1

In Texas the taxes paid go by blue book value.

bagwell · 05-14-08, 12:10 PM

Quote:

Originally Posted by litesoarer

It doesn't matter if they "sold" the car for $100,000 or $1

In Texas the taxes paid go by blue book value.

that's correct.......unless you use a dealer to do the trade...I thought there was a term for this...I know you can do something like --- if I wanted to trade in a car at a dealer for a new one and already have a buyer lined up the dealer will handle the transaction, acting as the seller of my trade-in and I get full tax credit towards the new vehicle.

sonikbo0m · 01-26-10, 04:00 PM

does anyone have an answer for this? i'm interested to know because my brother may be trading cars with someone

both lienholders are still banks

brother owes 18k and i believe the other person owes roughly about 25

lesaxo6588 · 01-26-10, 08:20 PM

The term is called an "in and out." It was more widely used before dealers begin to run into legal problems (I.E. - safety, scrubbed titles and other issues that they could be left responsible for).

There are dealers that will still do it in the state of Texas, but they will generally require a safety inspection and a fee around the aforementioned $500 or more depending on the "dealer pack."

tmf2004 · 01-26-10, 08:34 PM

Quote:

Originally Posted by Faymester

i dunno if you can do this if poth parties don't own their cars but:

the two friends could 'gift' the cars to each other, or sell them to each other for $1 ... there are special forms for both cases ... but since one guy doesn't own his car i dunno if he can 'gift' it

I think you can only gift up to 12k annually... Not sure though