Question How to price your Newmar for sale?

[deaton]

Someone should explain what In-n-Out means and it's not burgers! Many may not know about this or what it is.

OK, here goes.

Most states have a sales tax on all coach sales. Even if you buy from a private party, you will get nicked for the ST when you go to register your new-to-you used coach.

However, when you trade your coach in to a dealer, most states with a sales tax will allow the dealer to show the trade-in value on the bill of sale and you get to deduct that amount from the sales price of the new coach so you only get nicked for ST on the difference.

So in Texas, where our ST is 6.25 percent, if you have a 150,000 trade-in on a $300,000 new coach, your sales tax bill comes to $9,375 instead of $18,750.

Most of us who have ever traded in an RV are aware that dealers are brutal when it comes to making an offer on your old coach. If you do get a “good” offer, you can be pretty sure you are paying too much for the new coach. So the obvious solution is to sell your old coach yourself and don’t let the dealer have it for peanuts.

An In and Out transaction allows you to do this without losing the sales tax advantage. You arrange with the cooperating dealer to have them “buy” your old coach and then “sell it” to the buyer you have already found and qualified. They process all the paperwork, collect the money from the buyer, maybe provide some financing to the buyer (something you can’t do and your dealer is happy to oblige) and they hold the proceeds from the sale to apply as partial payment against your new coach. They can legally show the proceeds as “trade value” on the bill of sale for your new coach.

In some cases, the dealer may not ever even see your old coach, you just deliver it to your buyer. In our case, we delivered the coach to the dealer after the buyer had wired the funds. The buyer picked it up at the dealership a couple of days later.

Obviously your dealer is entitled to a small fee for handling the paperwork. This is usually split in some fashion between the buyer and the seller.

So if you dealer was offering $150,000 for your trade and you sell it yourself for $180,000 using an In and Out transaction, your sales tax bill is now $7,500 on that $300,000 new coach instead of $18,750.

 

[deaton]

I’m doing factory pick up in February, too...the 17th.

That’s exciting. Maybe we’ll see you there. What reasons did you have for going with a New Aire? You’ll be beating us up the mountain, thats for sure!

 

[Akdare]

I have a gas coach now, a 2018 Coachmen Pursuit, 27’. We loved the floor plan, but as primary driver, I hated the way it drove. I’d be exhausted at the end of the day even with aftermarket suspension and handling stuff. I wanted a diesel, but something short, as I love national parks. Was looking at the 2019’s, but when they came out with the 2020’s with 2 extra feet, bigger engine, digital dash, etc., I jumped on it. Floor plan is very similar to the one we have now.

 

[deaton]

I have a gas coach now, a 2018 Coachmen Pursuit, 27’. We loved the floor plan, but as primary driver, I hated the way it drove. I’d be exhausted at the end of the day even with aftermarket suspension and handling stuff. I wanted a diesel, but something short, as I love national parks. Was looking at the 2019’s, but when they came out with the 2020’s with 2 extra feet, bigger engine, digital dash, etc., I jumped on it. Floor plan is very similar to the one we have now.

So back to the subject at hand, are you trading the Pursuit or selling it yourself?

 

[FLSteve]

Just curious … has anybody had any luck doing an "in & out" deal with NorthTrail RV ??

FLSteve

 

[Akdare]

So back to the subject at hand, are you trading the Pursuit or selling it yourself?

I am just trading it in...the small difference is not worth the hassle to me.

 

[sheridany]

I wonder if this would work in California because each new RV used or new pays the full freight sales tax irregardless of a trade or a sale. That is a big check to write. I still have a copy of my check front and center to remind myself when I start jonesing for a DSDP.

 

[deaton]

I know there are some states that have the policy that you pay full freight on the sales tax with no offset for the trade. I would not be surprised to learn that California is one of those.

I’m thinking we have folks on the forum who can confirm that as a fact.

That said, in a state with that policy, the In-and-Out transaction would have no benefit.

I suggest you move to Texas.

 

[FL-JOE]

Thanks for explaining the "in and out". I had never heard of that. I would be interested if anyone knows of North Trail ever doing it.

 

[Hawkeye]

Have done this for years on equipment, cars, trucks, UTVs anything with sales tax, but have never heard the term "in and out". Not all dealers will do this and the ones that do, some will charge, and others not. To me it would be a no brainer to complete a sale. Most dealers of licensed vehicles want the item to pass thru their lot so it doesn't compromise their dealers license.