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The knowledge of the blogosphere February 7, 2006

Posted by techandother in Automotive, Free Money, My Projects.
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I’m impressed with bloggers, for the most part. I think we all can do without the detailed accounts of exactly how boring someone’s life is, though.

The best part about blogging is the research aspect. In fact, that’s what I try to do here, mostly. Why not use this as a forum for the advancement of others? In return, I hope to get feedback on my ideas and we can share in the advancements.

Take this posting I did a while ago. I wanted to find a way to trade in an assrt (my car) and lose the same amount of debt (credit cards). In the process, I wanted to gain something else (in this case, a higher credit rating and lower mortgage payments), otherwse there was no sense in moving assets around. I worked out a specific order to do things in, and I am happy to say the following:

This blogger is putting his money where his mouth is.

I sold my car about two weeks ago, and am paying off my last credit card as we speak. I think this is what blogging should be all about; sharing each other’s expirience to collectively become more knowledgeable.

So far, I have only found one problem with my plan, and it was from feedback from a co-worker. OK, so he didn’t comment, but still… The problem is that when you trade in a car for another car, you only have to pay sales tax on the difference in price. So if you trade in a car worth $10K, and the new car is $18K, you only pay sales tax on the $8K difference. By doing my plan, you pay sales tax on the full $18K, since you sold the car for cash.

That’s OK though, because since I sold my car for $10K, that is only about an extra $800 in sales tax on the new car. Sounds like a lot, but on a 48-month loan, like in my original posting, it only amounts to $16.67. I am planning on easily making that up due to the higher mileage of the new car I’m looking at.

Wish me luck, and if you want to contribute to our collective knowledge, feel free to comment!

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Comments»

1. Dan - February 8, 2006

In addition, there are HUGE tax rebates on hybrid vehicles right now. That DEFINITELY would help in this situation. In fact, I am going to have to re-think the target vehicle in this project…


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