El Toro
Innocent Bystander
We are not taxed on the trade value, so if I trade for $8k, it reduces my OTD cash outlay by about $8700.
This does not impact the dealer. It just impacts how much is due to the state. I owe no tax on the trade value. This works for guitars, guns, stereo equipment, and other stuff too.
The dealer can turn around and get $9500, deal with financing, extended warranties, etc. the margins on new bikes are lousy enough that used bikes can be a profit center for a good dealer.
If you keep the bike too long, either they won't take it in trade, or the book value will be so low as to make trading less viable. Even if your bike is in great condition, what they can buy it from you for is dependent on the bank's loan value unless they're self financed.
Around here you can even trade a bike on a car. There is a local motorcycle buyer who will take it off the car dealer's hands.
This does not impact the dealer. It just impacts how much is due to the state. I owe no tax on the trade value. This works for guitars, guns, stereo equipment, and other stuff too.
The dealer can turn around and get $9500, deal with financing, extended warranties, etc. the margins on new bikes are lousy enough that used bikes can be a profit center for a good dealer.
If you keep the bike too long, either they won't take it in trade, or the book value will be so low as to make trading less viable. Even if your bike is in great condition, what they can buy it from you for is dependent on the bank's loan value unless they're self financed.
Around here you can even trade a bike on a car. There is a local motorcycle buyer who will take it off the car dealer's hands.
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