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Re: end of the road
Posted by DER (more from DER) on Sun, 4 Dec 2005 11:55:45
In Reply to: end of the road, richard johnson, Sun, 4 Dec 2005 11:22:33
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What is your marginal tax rate? There are new IRS rules on car donations which do not allow inflated book values for the deduction. In any event, whatever your marginal tax rate may be, state and federal, it will always only be fraction of the car's real value. So, why not get the car's entire real value. You said you needed money. Working convertibles have a premium over a sedan. Take the money. But, what are you going to replace it with? ANY newer car will always cost way more money to purchase and amortize, thereby a net loss over your present situation. A used car? Known value? I do not think so. You are both selling and buying someone else's problems.
Looking at the car in isolation, and not the money you will spend on replacement, getting all of the car's value over a fraction of the value is always smarter. Duh. You know what Click and Clack know. Driving the wheels off virtually any currently owned car is cheaper than buying a new car.
Enjoy the house. Here's hoping you are not in a bubble location. DER.
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