Taxes on trucks

[RoadToad]

To cover the taxable gain, most dealers took the incentive money and added it to the trade-in vehicles value. That way the dealer shows more sunk cost, and less taxable gain, but the amount reported to Nada becomes artificially higher. And that benefits the dealers again, because they now get to sell that clunker and get more money ouf of it, as they negotiate and show you the Nada book.

I thought under the Cash for Clunkers program, the clunkers traded in had to be destroyed, and couldn't be re-sold?

[Chubminnow]

I thought under the Cash for Clunkers program, the clunkers traded in had to be destroyed, and couldn't be re-sold?

That's what I remember too...something they filled the engine blocks with (cement?) to make them permanently disfunctional, then they wrote "Clunker" across the windshield or something...and from there I assumed each "clunker" was sold for scrap, the ENTIRE vehicle was sold for scrap, none of it being salvaged. This is how I remember it.

What a waste!

[Tom523]

That's what I remember too...something they filled the engine blocks with (cement?) to make them permanently disfunctional, then they wrote "Clunker" across the windshield or something...and from there I assumed each "clunker" was sold for scrap, the ENTIRE vehicle was sold for scrap, none of it being salvaged. This is how I remember it.

What a waste!

The only thing that the cash for clunkers program did was take a bunch of Obama bumper stickers off the road.

[MsgMills]

The only thing that the cash for clunkers program did was take a bunch of Obama bumper stickers off the road.

amen brother.....

[stratosjoe]

Come on Sarge you know down deep you are an Obama fan. Go ahead come outa the closet you will feel better for it.

[HURRICANEBOB]

I thought under the Cash for Clunkers program, the clunkers traded in had to be destroyed, and couldn't be re-sold?

You're right! But the Nada data input sitll showed that year, make and model ar drove a higher than expected trade-in value. so while that vehicle by VIN was trashed, those still out there saw an aritificially induced increase in expected market value based on trade in data history. Which meant that if a dealer had one in stock not traded in under the program, he just increased its "apparent" value.