Well it's not all you think it is. I WON a new car lately, worth aprx. 35,000, although I have not received it yet, after some research, I find that I will will owe approx. 1/3 of the value of the car in tax. Unless you have something to trade, or sell to pay the tax, ie; state sales tax, and title fees, dealer fees, and income tax. You should decline the prize. But, you could sell the car and pay the tax and maybe make a little money. Which is what I may have to do.
So you want to win a car?
- Thread starter johnsnook
- Start date
I am lazy, and always considered winning a car more trouble than other prizes because of having to register & pay insurance on it.
That said? If I was in need of a new car, and didn't have the down payment & couldn't afford the monthly payments for 5 years, paying 1/3d or less in taxes would be a GREAT deal!
FYI - I've read where the dealer *might* buy it back. Probably for less than if you took possession/paid to register it, but I always figured if I won one, that that's what I'd probably do.
That said? If I was in need of a new car, and didn't have the down payment & couldn't afford the monthly payments for 5 years, paying 1/3d or less in taxes would be a GREAT deal!
FYI - I've read where the dealer *might* buy it back. Probably for less than if you took possession/paid to register it, but I always figured if I won one, that that's what I'd probably do.
I know it seems like a lot of cash to come up with at the time but wow I think I would be thrilled any way. My father in law won a car back in the 70's don't laugh but it was a pinto any way he would never get rid of that car and we had to donate it after he passed a few months back. He loved that car only because he won it. :sunny:
I get what your saying, fantisizing about the situation and actually being in the situation are two different scenarios. As is the situation with any big prize....
There's a reason most people who win the HGTV dream house are smart to take the cash option or flip the house as soon as they take posession, because most of us normal people can't cover the taxes on the prize, let alone the maintenance and property taxes on a million-dollar property several states away. That's why a lot of the sponsors who have been through this a time or two offer cash options in leiu of big prizes, because there's nothing worse than their act of generosity causing hardship and added burden on the recipient.
I like to think I'd handle any of those situations responsibly and not put myself in financial harm by taking on a prize that I can't really afford without a game plan to get out from under it, but it's fun to fantasize about the prizes offered too.
There's a reason most people who win the HGTV dream house are smart to take the cash option or flip the house as soon as they take posession, because most of us normal people can't cover the taxes on the prize, let alone the maintenance and property taxes on a million-dollar property several states away. That's why a lot of the sponsors who have been through this a time or two offer cash options in leiu of big prizes, because there's nothing worse than their act of generosity causing hardship and added burden on the recipient.
I like to think I'd handle any of those situations responsibly and not put myself in financial harm by taking on a prize that I can't really afford without a game plan to get out from under it, but it's fun to fantasize about the prizes offered too.
saraclare1
New member
That stinks. I guess I'd sell it immediately. ??? Not sure.
curmudgeon
New member
I enter vehicle contests for select (no tricked out or modified cars) vehicles only if I feel I can sell the car back to the dealer and come out ahead after state and federal taxes. There's a limited market for Jeep vehicles, they're not like a ford sweepstakes, Chevy or Toyota Sweepstakes. You should be able to sell it back to the dealer, though you might not get as much as you would for a more popular vehicle. Once the car is registered in your name, it's a used vehicle and worth substantially less than a new car. Try to sell it (if possible) back to the Dealer without registering it.
Congrats on the win, and hope you make some substantial money on the deal.
Oooooh, good point!
btw - remember when $185.00 per month was for the sporty high end cars?
I remember we got a Chrysler Newport for like 3 grand back in the 70's - that thing was a boat!!! :laughing:
chuckecheez
New member
Some very good options listed in this thread...it would be NUTS to decline a win that substantial. You're going to come out thousands ahead in spite of all the taxes/fees by either:
1) Immediately selling back to dealer before taking delivery.
2) Taking delivery and then selling yourself for around 80% of new pricing.
3) Keeping the car and getting a loan to cover taxes, pay off over 3-4 years. Should be easy to finance a car for 30% of it's market value.
I would LOVE to win a car; in fact it's probably #1 on my wish list, even over a great trip. Enjoy the fantastic win and hope things work out well.
1) Immediately selling back to dealer before taking delivery.
2) Taking delivery and then selling yourself for around 80% of new pricing.
3) Keeping the car and getting a loan to cover taxes, pay off over 3-4 years. Should be easy to finance a car for 30% of it's market value.
I would LOVE to win a car; in fact it's probably #1 on my wish list, even over a great trip. Enjoy the fantastic win and hope things work out well.
AMY, I got my first new car (68 Camaro SS) for less than 2,600 but you can't do that these days even though the price of the cars has increased, the wages have not met that increase. I remember my payments were $127 a month, and that was a high interest at that time. Wish I had that car now!!!!
Oh sweet car!!! You were a total wild child, huh? :crazytongue: :laughing:
Ah, I had it backwards {I usually do :crazytongue:
} but if I ever win a car, I'll remember that! :sunny:
As I understand it:
He buys from the distributor/corporation, marks it up & sells it. Profit.
If you win one, they {sponsor} purchase it at the markup/close to it.
So, if you don't take possession, it's still a new car, which the dealer *already* made his nut on, so he can now resell it & make MORE profit!
win-win :headbang:
So you want to win a car? **UPDATE**
I was notified that my car (JEEP) had been delivered to my local dealer, so I went down to look at it today and talk about my options. First of all, not exactly what I was expecting, while a nice ride, it is not the model that they flashed all over the entry page. ie. it is not an ALTITUDE edition, but a SAHARA model without the ALTITUDE package. So, I was bummed at that, and called the sponsor, and of course they said look at the rules, sponsor has the right to select color, options , interior, etc, etc. So, I accept that portion, but think it is very deceptive, It is supposed to be customized, but the only customized thing, are the wheels and tires, which are very nice. No leather seats and none of the xtras that come standard on the Altitude models.Still a great ride, though. They have, however, offered to buy it back from me at a price that I DON'T THINK IS QUITE RIGHT, but I feel that is negotiable at this point, and get me into a cheaper new vehicle with some money back to pay taxes with. They are also a Nissan dealer, and I could get a new truck for trade and some cash back. So, at this point I am filling out last years tax forms (since 2012 is not available yet) to get an idea of what the taxes will be. At this point, it does not appear that the taxes will be as much as I thought, approx. $4000 + state and title and tag fees. I have a few days to consider all the options, but at this point, I'm leaning towards accepting the car, selling my present car myself and paying the taxes. Depends on what I can get for my low mileage (less than 72000) 2001 Nissan Frontier King Cab.
I was notified that my car (JEEP) had been delivered to my local dealer, so I went down to look at it today and talk about my options. First of all, not exactly what I was expecting, while a nice ride, it is not the model that they flashed all over the entry page. ie. it is not an ALTITUDE edition, but a SAHARA model without the ALTITUDE package. So, I was bummed at that, and called the sponsor, and of course they said look at the rules, sponsor has the right to select color, options , interior, etc, etc. So, I accept that portion, but think it is very deceptive, It is supposed to be customized, but the only customized thing, are the wheels and tires, which are very nice. No leather seats and none of the xtras that come standard on the Altitude models.Still a great ride, though. They have, however, offered to buy it back from me at a price that I DON'T THINK IS QUITE RIGHT, but I feel that is negotiable at this point, and get me into a cheaper new vehicle with some money back to pay taxes with. They are also a Nissan dealer, and I could get a new truck for trade and some cash back. So, at this point I am filling out last years tax forms (since 2012 is not available yet) to get an idea of what the taxes will be. At this point, it does not appear that the taxes will be as much as I thought, approx. $4000 + state and title and tag fees. I have a few days to consider all the options, but at this point, I'm leaning towards accepting the car, selling my present car myself and paying the taxes. Depends on what I can get for my low mileage (less than 72000) 2001 Nissan Frontier King Cab.
Is the
1} dealer offering the prize, or
2} did the sponsor do a joint PR promo and the dealer "gives" the car instead of whatever the other sponsor offered, or
3} did/is the sponsor "buy/buying" the car to give to you?
If it's 1} or 2}, yeah, I wouldn't expect much, but if it's 3}, it should be decent, right? :scratch:
I usually avoid entering for a car unless there is cash in lieu, or LOTS of lower tiered prizes I'd like to win - just trying to figure out if I've avoided entering for a car for a good reason!
Re: So you want to win a car? **UPDATE**
Congrats on your win! It is good that you have options. I always wonder about the car wins, taxes, etc.
Congrats on your win! It is good that you have options. I always wonder about the car wins, taxes, etc.