Dealership wants to keep my maverick

[Ford Maverick Maniac]

Their offer is a joke.

Carvana is currently offering me as of 10/15/2022 $6,036 over my total out-the-door price of $26,068 on my Maverick XLT Hybrid with 5,619 miles on it. Or $7,484 over MSRP of $24,620.

Your profit will be a lot less after paying the capital gains tax you have to include on your fed and state tax returns. You can't avoid this because Carvana and all flippers have to type how much they paid you on the new title, which then gets reported to the gov.

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[MLowe05]

Your profit will be a lot less after paying the capital gains tax you have to include on your fed and state tax returns. You can't avoid this because Carvana and all flippers have to type how much they paid you on the new title, which then gets reported to the gov.

Just because you have to pay taxes on capital gains does not mean it is not worthwhile. I don't understand why so many people on this forum scream "capital gains" when discussion arises about selling a Maverick for profit. Most of us know what they are. Unless your rate is 100% (which is impossible), you're still coming out well ahead.

 

[Pilot323]

What's there to think? Do you want to purchase the Maverick at MSRP, or do you want to walk away with $2k and no new vehicle?

If you do want a Maverick now, then you're going to end up paying at least $2k more for it.

I think the dealership model is coming to an end. FWIW.

 

[Ford Maverick Maniac]

Just because you have to pay taxes on capital gains does not mean it is not worthwhile. I don't understand why so many people on this forum scream "capital gains" when discussion arises about selling a Maverick for profit. Most of us know what they are. Unless your rate is 100% (which is impossible), you're still coming out well ahead.

Yes you are still ahead but this has to be taken into consideration when deciding if it makes sense to sell. Many will have already spent their profit and won't have $2k to give to the gov at tax time. Not writing the tax check on time adds a big penalty and interest charges that can cost another thousand. You will make more over the years every time you fill the tank.

 

[jsus]

I think the dealership model is coming to an end. FWIW.

FWIW, that's not relevant to anything in this thread let alone what you replied to.

Just because you have to pay taxes on capital gains does not mean it is not worthwhile. I don't understand why so many people on this forum scream "capital gains" when discussion arises about selling a Maverick for profit. Most of us know what they are. Unless your rate is 100% (which is impossible), you're still coming out well ahead.

Exactly. 65-90% of the profit (resale minus cost minus qualifying expenses, ignoring any state taxes..) is preferable to $0.

Yes you are still ahead but this has to be taken into consideration when deciding if it makes sense to sell. Many will have already spent their profit and won't have $2k to give to the gov at tax time. Not writing the tax check on time adds a big penalty and interest charges that can cost another thousand. You will make more over the years every time you fill the tank.

Sure, so the advice should be to remember to set some aside for taxes, not to act like it's not worthwhile.

 

[MLowe05]

Yes you are still ahead but this has to be taken into consideration when deciding if it makes sense to sell. Many will have already spent their profit and won't have $2k to give to the gov at tax time. Not writing the tax check on time adds a big penalty and interest charges that can cost another thousand. You will make more over the years every time you fill the tank.

I made $7,300 after fees, state tax, capital gains tax.. I don't think I'd be making that in gas savings over a few years.

Not everyone will make that amount. But "taxes" is not a reason not to sell for a profit. Just like taxes is not a reason to refuse promotions where you make more money.

 

[Michaelkov]

My maverick came in and the dealer offered me 2k to walk away from the truck so they can resell it for more. They aren't adding anything on to the MSRP on me. And I have to wait for Ford to release the recall for the brake lights so I can take it home. I'm not going to walk away. Just wondering what some of your thoughts were??

 

[Suzukiridr14]

I wasn't going to walk away, I waited 10 months. I was just curious if this has happened to anyone else or what people thought.

If someone ordered a new Maverick, I'm sure the new price is more then 2K since they increased the cost of packages and options. Also are they offering you the out the door cost? (Including taxes, dealer fees, plate transfer etc) or just the price of the truck when you ordered it on the build sheet? There would be a 2 to 3K difference.

 

[Ford Maverick Maniac]

I made $7,300 after fees, state tax, capital gains tax.. I don't think I'd be making that in gas savings over a few years.

Not everyone will make that amount. But "taxes" is not a reason not to sell for a profit. Just like taxes is not a reason to refuse promotions where you make more money.

You are correct, tax is not a reason to not sell. It just has to be part of the decision and make sure the tax portion is not touched until April 15.

 

[riverrat373]

My maverick came in and the dealer offered me 2k to walk away from the truck so they can resell it for more. They aren't adding anything on to the MSRP on me. And I have to wait for Ford to release the recall for the brake lights so I can take it home. I'm not going to walk away. Just wondering what some of your thoughts were??

Tell them NO!

 

[Scupking]

My dear said they would give me 5k or possibly more when I picked mine up.

 

[huunvubu]

That's funny. Carvana just offered me $1000 UNDER my window sticker MSRP for my XLT Hybrid Lux

Carvana's offers are based on location and demand.

I live in Texas where demand is high. Your Connecticut location is more Volvo area not truck country.

 

[huunvubu]

Your profit will be a lot less after paying the capital gains tax you have to include on your fed and state tax returns. You can't avoid this because Carvana and all flippers have to type how much they paid you on the new title, which then gets reported to the gov.

You are assuming that you know what the sellers federal tax rate bracket is and that they are in a state that has income taxes.

For me living in Texas there is no income tax.

As for Federal it will not be more than 10% since we are retired and on SSN income and currently paying at the 0% level.

Your assumption of a lot less, which for me is about $600 of the $6000 gain, is not the same as reality.

 

[stoptothink]

Yes you are still ahead but this has to be taken into consideration when deciding if it makes sense to sell. Many will have already spent their profit and won't have $2k to give to the gov at tax time. Not writing the tax check on time adds a big penalty and interest charges that can cost another thousand. You will make more over the years every time you fill the tank.

Of course it has to be taken into consideration, but the general public has a pretty scary lack of knowledge regarding how taxes work. At ABSOLUTE MOST it cuts the return in half, but let's be real, there aren't likely to be many Maverick buyers who are in the higher tax brackets. We could have walked away with ~$3500 for doing nothing when we picked ours up and we do pretty well for ourselves. Then again, we turned down the offer because there are no alternatives for anywhere near the cost.

 

[huunvubu]

It is a capital gain. The accounting dept at the dealer has to 1099 you for payments that exceed $600. Not worth it even at 10k profit because $3-4k of the profit will be taxed as ordinary income on your fed and state tax returns.

Why are you assuming that everyone is in the 30-40% tax bracket?

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What is the average federal tax rate?

In the United States, the average single worker faced a net average tax rate of 22.6% in 2021, compared with the OECD average of 24.6%. In other words, in the United States the take-home pay of an average single worker, after tax and benefits, was 77.4% of their gross wage, compared with the OECD average of 75.4%.

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Also you assume that every state has an income tax.

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Only eight states have no personal income tax:

• Wyoming.
• Washington.
• Texas.
• Tennessee.
• South Dakota.
• Nevada.
• Florida.
• Alaska.

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Your not worth it comment is funny as I think most people would find a profit of $6000-$7000 as worth it.

For me the profit is at least $5432.40 (90 % of $6,036, 10% tax bracket) and allows me to replace my 2022 Maverick XLT Hybrid with the missing trailer hitch with a new 2023 Maverick XLT Hybrid and have an additional cash profit of $2910.01.

2022 Maverick out-the-door price $26,068.21
2023 Maverick out-the-door price $28,590.60

Additional cost of MY23 vs MY22 is $2522.39

Profit (after taxes) of $5432.40 minus the additional cost of $2522.39 leaves extra cash of $2910.01.

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