Forced to sell a an expensive vehicle at the wrong time how to handle???

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adam61
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Forced to sell a an expensive vehicle at the wrong time how to handle???

Post by adam61 »

I recently got a promotion which is great, but it comes with a company car with personal use privileges. So obviously I don't need my vehicle anymore. Unfortunately, of course I spent a lot purchasing a 2012 model car brand new and planned to keep for 10-12 years. There's no sense in keeping it just to maintain and pay insurance, but I want something like the real value. In the past I tried CarMax once as they are one of the only dealerships that would straight buy your car, and they low balled the offer. Private party is an option, but most people can't get 30-35k together without a loan which severely complicates things.

Has anyone had to deal with this? I want close to fair value, and need it done pretty quick so I'm not worrying with this and a move and selling and a buying a house along with other things. I've sold several cares for 3-8k through private party, but the horror stories pile up in the 15k+ range.
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ualdriver
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Re: Forced to sell a an expensive vehicle at the wrong time how to handle???

Post by ualdriver »

I haven't had to deal with that specific situation, but I've sold a few personal cars over the past 10 years or so. Yes, it's going to hurt as new cars depreciate rapidly in the first few years, but it sounds like your problem is a good one to have in the big picture, right?

I've had much luck with eBay. Yes, people can get $30-35K together. They have for me with one of the cars I sold.

It's $125 to sell the car on eBay and you'll get lots of eyeballs. Put lots of pictures up and tell a nice (true) story about how you have taken care of the car. Tell them the only reason you are getting rid of it is because you now have a company car so that a potential buyer understands that you're not getting rid of it because of other problems. If you have all of your maintenance records, receipts for oil changes, etc., state that too. All the better. Hopefully you have 100% positive feedback in your eBay account...it will sell if priced right.

Craigslist is free. I have had so-so luck on that site.

Cars.com lets you put up a lisiting for free with a few photos.

Autotrader.com costs a few bucks. I have had really bad luck on that site. The last time I sold a car about a year and a half ago, I paid their fee and only got ONE inquiry. I doubt I will use them again. That car sold on eBay for a fair price.

Good luck.
mhalley
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Re: Forced to sell a an expensive vehicle at the wrong time how to handle???

Post by mhalley »

Certainly you will get more money by selling it to a private party. There are multiple sites that tell you how to do this and not get ripped off. I have never wanted to deal with the hassle of a private sale, so always traded my cars in when I bought a new one. If you sold it at car max, you will get less money yet not have to worry about getting ripped off. In the long run you will come out ahead with the company car, it is all about how you look at it. You could apply the difference in price as a mental accounting, i.e., I am paying $50 a month to drive the company car.
betterfinances
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Re: Forced to sell a an expensive vehicle at the wrong time how to handle???

Post by betterfinances »

Well, I can offer a couple comments about why you might want to keep the car. (Financially it would make more sense to sell your vehicle, but perhaps you're looking for a reason to keep it?)

I'd definitely talk with a CPA (hired by you) to review your potential tax liability of your personal use of the company car. Depending on how the arrangement is structured and the number of miles that you put on the vehicle, you might get a significant tax liability at the end of the year.

Are there restrictions on how many personal miles you can put on the car? For example, if you decide you want to take a road trip around your part of the country and drive 1,000 to 2,000 miles as part of a week long road trip, would that cause a problem? (Granted you could just rent a car if you wanted to, but I hate renting cars.)

Will you need your own vehicle to drive when the company vehicle is in the garage for repairs and maintenance?

Might you have kids in the near future? Or dogs? Probably not a great idea carting them around in the company vehicle.

If you lose your job, how will you get around? Do you get to keep the company car for a while, or will you have to turn it in on your last day?

None of these really answered your question (how to sell your current car) but some food for thought on whether you really can rely on a company car or not.
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adam61
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Re: Forced to sell a an expensive vehicle at the wrong time how to handle???

Post by adam61 »

Just to clarify for the above poster and possibly ask another question. The company charges me personally $200/mo after tax for the company car. They also pay for gas/insurance/maintenance/repair. The $200 is for up to 20% personal use, which I would never come close to. Work miles would be on the order of 25-30k per year and I put less than 5k beyond that in any year easily.

1) Are there tax implications typically beyond this since they are charging me for my personal use?
2) Getting a car quickly on the other end could obviously stink, but if I didn't plan to do this for 3+ years the move and selling the car and all that are just a horrible financial and mental loss, so holding on as a security blanket is probably a poor idea for me. I would likely just have a car fund and buy a car outright if I lost my job, or do the one car family thing for a short period if I felt a new position would likely also offer a vehicle.
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Toons
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Re: Forced to sell a an expensive vehicle at the wrong time how to handle???

Post by Toons »

Ditto on using Ebay.
I have a family member that buys and sells successfully with Ebay :happy
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kaudrey
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Re: Forced to sell a an expensive vehicle at the wrong time how to handle???

Post by kaudrey »

We have bought and sold several cars on Ebay as well, so I'd second the vote to try that.
betterfinances
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Re: Forced to sell a an expensive vehicle at the wrong time how to handle???

Post by betterfinances »

One thing you should do is study your companies insurance policy and see if there are any exclusions to it that you might want to know about ahead of time.

For example, my company's insurance policy specifically excludes any at-fault claims that might happen when the employee is intoxicated. Driving intoxicated is a stupid idea - don't do it. But some/most/all individual policies cover liability claims even when the driver receives a DWI. My company policy does not, so if I drive intoxicated, I am personally liable for any damages that may result. It's something that I hope you never do, but you should be aware of that ahead of time if it is an exclusion.
adamthesmythe
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Re: Forced to sell a an expensive vehicle at the wrong time how to handle???

Post by adamthesmythe »

If you have bought an expensive vehicle (Mercedes or that ilk) it has already lost a considerable amount of value. You don't lose much more value by keeping it for a few years unused. Indeed, it might turn out that a low-mileage older model is fairly desirable.

So consider canceling the insurance and storing the vehicle.

(If you do this- be sure to check into the impact on registration).

Not sure I see why you feel "forced" to sell.
Twins Fan
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Re: Forced to sell a an expensive vehicle at the wrong time how to handle???

Post by Twins Fan »

I am along the same lines as those hinting at keep it. Why not? It kind of sounds like it is a car you really like and you would have been paying for it anyway. There's no additional costs now and you can keep the miles low on a car you like.

Keep it for the times you want the cool car. I doubt the company car will be that cool. :happy
texasdiver
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Re: Forced to sell a an expensive vehicle at the wrong time how to handle???

Post by texasdiver »

Sell it private market.

The type of "frugal" buyer who is looking for a late-model lightly used single owner luxury car will likely have no issue arranging financing. My credit union practically gives away used car loans and they are happy to facilitate the transaction. It is pretty common. And people looking for that kind of car are likely to be casting a pretty wide net.

You can list for free or nearly free and see what happens. People will find you if that is what they are looking for.

I disagree with those who say keep it and store it. Unless you are talking about some sort of amazing collectors item I think this is unwise financially. The car will probably never be worth more than what it is worth today. And the changes to technology is accelerating. We are on the cusp of a lot of new safety and guidance technologies. I don't think today's cars are really going to age that well in the face of that kind of technological change.
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dm200
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Re: Forced to sell a an expensive vehicle at the wrong time how to handle???

Post by dm200 »

Private party is an option, but most people can't get 30-35k together without a loan which severely complicates things.
Selling to someone who gets a loan for the purchase should not be an issue, especially if they get the loan from a credit union. Credit unions are much more likely to finance such used car purchases than banks. They would probably need to document the "value" of the car so that the loan amount was at or below the car value. To consummate the sale from a private party (you), there would need to be arrangements made to exchange paperwork, money and the vehicle - that are satisfactory to the lender.

I strongly suspect if you only deal with "cash" buyers, you severely limit your market.

If there is a locally based credit union that has a "community charter" for those that live in the area, that could be a place potential buyers could apply for such a loan.
but the horror stories pile up in the 15k+ range.

I suspect these "horror stories" are situations were "cash only" sales, and not where the purchaser financed the purchase with a loan from a credit union (or bank).
Last edited by dm200 on Sat Feb 06, 2016 10:17 am, edited 2 times in total.
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Traveller
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Re: Forced to sell a an expensive vehicle at the wrong time how to handle???

Post by Traveller »

Sounds like a sweet deal: car + gas + maint + insurance for $200/mo? That's awesome!

Sell your car privately on Craigslist or eBay. I've done it many times and never found it to be the hassle people seem to say it is. Just be smart, be clear you will only entertain serious buyers, if they cant / wont do cash (or you don't want to) then meet at their bank to do the deal.

You said in the title that you are "forced to sell"... It seems to me you are in a great spot! Sure you might take a hit on depreciation, but you'll make that up quickly. And you are not desperate to sell immediately. List it with a very fair price, wait for a good buyer and then sit back and smile every time your employer fills up your gas tank and buys you tires. :beer
mouses
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Re: Forced to sell a an expensive vehicle at the wrong time how to handle???

Post by mouses »

Do you have to accept the company car? When I was working in field support, I was offered a company car, but I wanted to keep my own car. So instead of the company car they reimbursed me at some rate per mile for using my own car.
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Watty
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Re: Forced to sell a an expensive vehicle at the wrong time how to handle???

Post by Watty »

betterfinances wrote:One thing you should do is study your companies insurance policy and see if there are any exclusions to it that you might want to know about ahead of time.
Also check to see of other people can drive it and be covered by the insurance. Even if you don't normally let other people drive your car you might get in a bind some time like having to have someone drive you home when you get unexpectedly sick.

You should also check your umbrella policy to see how it handles a company car.

When you have a car rental your normal car insurance will usually cover you for liability, not just collision like a credit card.
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dm200
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Re: Forced to sell a an expensive vehicle at the wrong time how to handle???

Post by dm200 »

mouses wrote:Do you have to accept the company car? When I was working in field support, I was offered a company car, but I wanted to keep my own car. So instead of the company car they reimbursed me at some rate per mile for using my own car.
The "deal" described really seems a "no brainer" to accept. I also suspect that the employer will provide a replacement car every few years as well.
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adam61
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Re: Forced to sell a an expensive vehicle at the wrong time how to handle???

Post by adam61 »

Yes car's are replaced at two different times a year when they exceed 80k miles. Usage is not optional, I think it's a big tax benefit for them and with the cheaper cost of gas for them and the huge mileage reimbursement if I used a personal vehicle(Over 50c/mile) they just do not allow this.

So while I'd be going from driving a $70k new car to $30k the benefits are worth it, and if I used my nice car I'd run it's mileage through the roof in 2 years and have to sell it anyway even if it was an option.
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dm200
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Re: Forced to sell a an expensive vehicle at the wrong time how to handle???

Post by dm200 »

The good news, I suppose, is that your car is now several years old - you "enjoyed" it when it was new. Getting a new car every 80,000 miles or so - mostly at the company's expense is a nice benefit.
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Sandi_k
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Re: Forced to sell a an expensive vehicle at the wrong time how to handle???

Post by Sandi_k »

I had just this experience a few years back, when my doc advised me to sell my truck-framed FJ Cruiser and get something squishier for post-spinal surgery.

I too found that many people would not arrange used car financing to buy from a private seller. And you're right - people needed financing for a $24k purchase.

Happily, there was a car lot about an hour away that sold only high-end used cars. The agreement was that they took the car, priced it to buy from you (which you had to agree to, and I negotiated successfully up by ~ 8%) and then escrowed the funds. e completed a purchase contract, and then they placed the car on their lot. If they sold it within 60 days for more money than agreed to with me, they kept the spread. If it had not sold within 60 days, the funds were released to me, and the car was entirely out of my hands.

They did financing, which was a huge help. And they carried the insurance, too. From a legal perspective, according to my attorney and insurance company, the purchase contract protected me in case someone stole the car, or wrecked it on a test drive.

FYI, it sold within a month, when I had had it listed on AutoTrader.com and CL for 4 months as a private sale.

So, if you're willing to wait a couple of months to get the cash, that might be one route.
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Boglenaut
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Re: Forced to sell a an expensive vehicle at the wrong time how to handle???

Post by Boglenaut »

Is the job stable? Might you quit, or get laid off or fired? Is there a probation period?

You'd hate to sell your car then buy a new one in a few months.
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Re: Forced to sell a an expensive vehicle at the wrong time how to handle???

Post by Jack FFR1846 »

I had a similar experience. I came from a job with a car allowance and gas payments to one where the company provided the car with a gas card that also was used for any maintenance. After 80k miles, they replaced it and would offer it to me at a very reduced price. My wife was specifically allowed to drive it (Explorer) and they even specifically said that if we needed to pull a trailer or boat, that was allowed.
I sold my car after about 2 months. At 7 months, I left because I hated the job. I then had to buy a new car again.
Just something to consider.
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dm200
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Re: Forced to sell a an expensive vehicle at the wrong time how to handle???

Post by dm200 »

I too found that many people would not arrange used car financing to buy from a private seller. And you're right - people needed financing for a $24k purchase.
As I posted earlier, many credit unions will do this kind of financing. The first issue to deal with is whether the car is owned free and clear or if there is a loan. If there is a loan, that complicates things a lot. You can't sell the car without the released title, and the lender will not release the title until the loan is paid off.

If the car is owned free and clear, then it shouldn't be too difficult/complex to sell the car with financing:

1. Buyer applies for and has loan approved for purchase of vehicle
2. Seller, buyer and credit union get together at credit union office to consummate the deal. Seller gets credit union check for the sale, buyer gets the car and credit union is listed as lienholder.
3. Seller leaves with tags from car. Buyer gets registration, tags at DMV

Everybody is happy.
Dimitri
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Re: Forced to sell a an expensive vehicle at the wrong time how to handle???

Post by Dimitri »

adam61 wrote:... In the past I tried CarMax once as they are one of the only dealerships that would straight buy your car, and they low balled the offer. ...
Why not take it to CarMax and see what they offer you this time? You might be pleasantly surprised. At the worst, you know what someone is willing to pay you right now, no questions asked, for your car. That is what I like about CarMax --- firm cash offer --- no questions asked. And you can sell it privately from there if it isn't acceptable. In the past three years I've sold two cars to CarMax. Both were older, in need of repair (oil leak and check engine light respectively) and I believe I got a fair price. In both cases for maybe $1-2K I was happy to forgo the potential upside by selling privately for the ease and convenience of getting a bank draft and moving on with my life. The other suggestion I have is to take your car to the dealer where you purchased it. They may be interested in purchasing it back and putting it on the front lot. Anyway, best of luck whatever direction you choose.
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leonard
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Re: Forced to sell a an expensive vehicle at the wrong time how to handle???

Post by leonard »

i'd hold on to the car until you've been in the position a few months.

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