Need to buy a new vehicle on the same day I close on my house

[gravytrain912]

I have to sell my Truck to lower my DTI to get a mortgage. What sucks is that I am going to lose all the tax value that is in my truck. I am thinking I should buy a new vehicle on closing day.  Does anyone have any suggestions or experience doing this?

[dabrian]

Lose the tax value?

[gravytrain912]

In Georgia you pay taxes up front and then $20 a year on every vehicle. When you trade in a car you carry over the taxes you paid to the new vehicle. So by just selling the vehicle and then buying a new one a few weeks later, I would lose around $2800......those are taxes I would have to pay again on the new truck.

[Anonymous]

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@gravytrain912 wrote:
In Georgia you pay taxes up front and then $20 a year on every vehicle. When you trade in a car you carry over the taxes you paid to the new vehicle. So by just selling the vehicle and then buying a new one a few weeks later, I would lose around $2800......those are taxes I would have to pay again on the new truck.

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Most states are similar, provided you are trading in a vehicle . . then you just pay tax on the net balance on the purchase that day.

Here's the thing though . . . if you sell your vehicle outright, you are going to get significantly more $$ for it than a dealer would give you on a trade.

If you can get $2800 more selling private party than a dealer would give you on a trade in, it's really a wash.

[gravytrain912]

I have it listed on cars.com for 4k over what carmax offered me, which is kbb private sale value. I also have a paid off mini van I can drive for a couble weeks. It sucks but I am willing. Do you think I should apply for Penfed and DCU loans right after closing? just trying to get a game plan together. my fico 8 scores are 761,776 and 761....

[Anonymous]

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@gravytrain912 wrote:

I have it listed on cars.com for 4k over what carmax offered me, which is kbb private sale value. I also have a paid off mini van I can drive for a couble weeks. It sucks but I am willing. Do you think I should apply for Penfed and DCU loans right after closing? just trying to get a game plan together. my fico 8 scores are 761,776 and 761....

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If you get the $4k over, I see you coming out $1200 ahead on this

I would personally drive the paid off mini van for a while. Get used to your new expenses . . . make sure the house doesn't need any unexpected spends . . save some money . . finance another vehicle down the road.

[gravytrain912]

I have a catering business that I take a huge amount of write offs on my taxes, thats why I need to sell truck because my income is low on paper. The mini van is usually driven by an employee. I frequently have events going on at the same time....2 vehicles is a must. The Mortgage will reduce my monthly expenses by $925 and my 45000 renovation investment and home purchase will yield me 140000 in home equity when its all said and done.

[Anonymous]

I hate car payments so am always going to try and keep folks out of them, but if you're going to go for one just make sure everything is DONE DONE DONE with the mortgage before your apply.

Congrats on the home purchase and good luck!

[gravytrain912]

Thx!

[Anonymous]

So what Steeler is saying is that depending on whether it is a wet or dry closing state you may not have table funding at closing and there may be processing in the works after "closing" . Make sure that is done before applying for any credit.