Auto Glass and Windshield Repair or Replacement #free #car #games


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Paintless Dent Removal

Auto Glass Services

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Leadership

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Franchise

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Buying or Selling an Automobile in Massachusetts #car #transportation


#sell a car
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Buying or Selling an Automobile in Massachusetts

Massachusetts Lemon Laws

Massachusetts has laws that protect consumers when buying or leasing a new car. and buying a used car that does not meet expectations. These Lemon Laws require dealers to provide consumers with a written warranty against defects that impair a used vehicle’s use or safety, and require private parties to disclose any known use or safety defects.

Registration and Insurance

Separately, residents can apply for new plates or transfer an existing registration to a vehicle gifted by or purchased from a friend or family member. To do so, they will need:

Once collected, these materials should be taken to the nearest full-service RMV branch office .

For information on registering recreational vehicles, use resources from the Massachusetts Environmental Police .

Sales Tax

Sales tax equal to 6.25 percent of the vehicle’s purchase price is collected when a vehicle is bought from a dealer. In private sales, 6.25 percent of the purchase price or 6.25 percent of the National Automobile Dealers Association (NADA) trade-in value — whichever is higher — is collected on the purchase of any new or used vehicle in Massachusetts. If no clean trade-in value is available, a default value agreed upon by both the RMV and Massachusetts Department of Revenue (DOR) will be used.

If a vehicle is purchased outside of Massachusetts and sales tax is not paid in another state, sales tax must be submitted to Massachusetts by the purchaser. However, if sales tax was paid to the state of purchase, taxes may still be due to Massachusetts depending on the reciprocity relationship between states. A car purchased from a family member — or received as a gift — may be exempt from sales tax.

Vehicle Titles

A title is a document that indicates who has legal ownership of a vehicle. Anyone planning to buy or sell a used car (model year 1981 or newer) must have a title to transfer ownership so the buyer can register the vehicle. Without this, it cannot be registered.

Vehicles older than model year 1980 purchased by the current owner before November 26, 1990 can be registered without a title, as long as the bill of sale and a copy of the last registration for the vehicle are available.

Seven-Day Grace Period

In accordance with Massachusetts General Laws Chapter 90 Section 2 — also known as the Massachusetts Seven-Day Registration Transfer Law — if you transfer ownership or lose possession of a motor vehicle, you have a seven-day grace period to transfer registration to a new vehicle.

This period begins on the date you transfer ownership or lose possession of the first vehicle and ends at 5 p.m. seven calendar days afterward. For example, if you transfer ownership of your car at noon on July 1, the grace period would end at 5 p.m. July 8.

To qualify for this grace period the following conditions must be met:

  • You have an active registration and are at least 18 years of age
  • The newly acquired vehicle or trailer must be of the same type and have the same number of wheels as the previous vehicle or trailer
  • You must carry the transfer documents, which show the registration number to be transferred, in your vehicle
  • You have lost possession of or disposed of your previous vehicle
  • The registration plates must be attached to the newly acquired vehicle

How To Trade In a Car That You Still Owe Money On – or That Has a Payoff! #car #hire #orlando


#trade in your car
#

How To Trade In a Car That You Still Owe Money On,

or That Has a Payoff!

Many people get thrown for a loop when it comes time to trade in a vehicle with an outstanding loan payoff on it. Car dealers are very familiar with how to take trades with money owed on them, but often, when they try to explain the process the customer gets more confused then when they started!

Here’s How It Works:

You take the selling price of the vehicle you’re buying, add tax and title fees, subtract your trade-in allowance, then add your payoff to the total. This gives you your total amount due. Subtract from that any cash down and/or rebates and you have the amount to be financed on the new loan.

The payoff has to be paid off in order for the dealer to get a clear title to your trade. In essence, when you trade a car to a dealer you are really selling it to them. You can’t sell a car without providing a clear title. By a clear title I mean a title that is lien free. By refinancing the payoff you are giving the dealer the money to pay off your outstanding loan.

The Calculations Should Look Like This:

Selling Price of the New Vehicle You are Purchasing

+ Sales Tax and Title Fees

Trade-in Allowance

+ Payoff

Rebates and/or Cash Down (if any)

________________________________

= Amount Due or Amount to be Financed

One Word of Caution However:

Make the car dealer put in writing that they are going to use the payoff amount to immediately pay off your car loan on your trade. This is very common, and most dealers take care of it right away.

However, I’ve seen cases where a dealer was having cash flow problems and they sat on the money and waited a month or more before they got around to paying off a loan. Until the loan is paid off you are responsible for making the payments on it. So be careful.

I hope this helps. It is very easy to get confused when there is a payoff involved. If you just take it a step at a time it is very easy to follow. By adding it to the new loan after the trade-in allowance has been subtracted you are in essence killing two birds with one stone:

you are paying off the outstanding loan

you are trading your car to the car dealer with a clear title so he can then resell the vehicle

The bottom line to remember is that the payoff owed is your loan and therefore it is your responsibility to pay in full.


The Advantages of Buying a New or Used Vehicle – Car Reviews – Buyers Info – Car and Driver #car #insurances


#buying a used car
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A pros and pros list outlining the advantages of choosing either route.

Buyers Info

There are a lot of questions involved in the process of buying a car, but the first, simplest one is probably the most important: Should you buy new or used? To help you choose, we ve laid out the advantages of both below. Keep in mind that although there are more advantages listed on the new side, the pros in the used column are big ones and in many cases can be more to your advantage.

ADVANTAGES OF BUYING NEW

Made to Order Chances are, you can spec a new car just the way you want it, or at least have the dealer search for one with the right combination of options and interior and exterior colors.

It s Not Used Well, duh. A new car hasn t been in any accidents, hasn t been mistreated by unknown evildoers, doesn t smell funny, has seen no wear or tear, and comes with a clean history that includes only being driven off the line, onto a transporter, and around the dealer s lot.

Warranty Like the rest of it, the new car s warranty is untouched. You can buy warranties for used cars or go the certified preowned route, but the best warranty you can get without paying extra will be the one that comes with a new car from the manufacturer.

Latest Gizmos The newer the car, the more modern the geeky tech that s packed inside. Multimedia and navigation interfaces are constantly evolving and improving, so if you have to have the latest in gadgets (and don t want to add them yourself post-factory) the selection will be better in the new-car showroom.

Safety As vehicle safety laws become ever more stringent, automakers are forced to change the way vehicles are built and the safety systems with which they are equipped. Some form of tire pressure monitoring is now mandatory on all vehicles sold in the U.S. and by 2012, stability control will be, too. Other technologies that are not mandated, like blind-spot monitoring systems, side curtain airbags, adaptive cruise control, and brake assist are becoming more prevalent on less expensive vehicles as their associated costs come down.

Higher Fuel Efficiency and Lower Emissions Again, partly thanks to Big Brother, cars are largely getting more fuel efficient, even while simultaneously getting more powerful. The newest crop of diesels is cleaner than ever before, and choices in the hybrid segment are growing, too, if that s your thing.

Financing Banks offer lower financing rates on new vehicles because the vehicles are inherently worth more and have not already been hit by depreciation. Keep in mind that, when the lower APR still applies to a larger sum, your payments or total cost may still be higher. But if you plan to finance, check your deals before buying. The cheaper car might not turn out to be the better deal in the long run.

Maintenance Some new cars, mainly those from luxury marques, include free scheduled maintenance for a certain amount of time or mileage. This built-in cost saving should be considered in the final price analysis if applicable.

Legwork Once you ve chosen a vehicle, or at least the brand you re interested in, much of the new-car search can be offloaded on the salesperson, who can find the car you ask for. The same search in the used realm requires a lot more legwork on your part hunting on the internet, visiting multiple private sellers, and driving from used lot to used lot.

ADVANTAGES OF BUYING USED

Price Comparing apples to apples, a used car is going to be less expensive. The relative advantage of the used-car price can also allow a buyer to step up to a nicer model.

Depreciation Cars lose value with each passing month and mile, but the steepest decline happens right away; some models can lose 40 percent or more of their value in the first year. With a used car, there s no depreciation hit the second you roll off the lot. There s also less mental depreciation, no need to worry about the first parking-lot ding or rock chip in the paint because chances are the car s previous owner or owners took care of those for you.

Insurance Rates Like financing, insurance rates will be affected by the age of a car, but in this case the used vehicle tends to be less expensive. A little bit of pre-purchase research will save you from insurance sticker shock, no matter which vehicle you choose.

Choice Although you obviously can t build a used car to order, maybe you want a model, option package, or even wheel design that s no longer made. This wider selection can add to the length of the search, but perfection and satisfaction rarely come easily.


Lease or Buy a Car? Calculator. #cheap #rent #car


#lease cars
#

Lease or Buy a Car? – Calculator

Conventional wisdom says if you lease you’ll have nothing to show for your money when the term is up. But that ignores the opportunity cost.

hould lease or buy a car? Conventional wisdom says if you lease you’ll have nothing to show for your money when the term is up. But that ignores the opportunity cost inherent in buying: after all, the money you pay up front for the car could be invested instead. Our worksheet will determine whether leasing or buying is the better overall investment strategy. Bear in mind that the calculation assumes you would buy the car outright rather than finance it.

The Advantages

Low Down Payments — Even though a lot of the advertised lease deals assume a down payment, you can often get the dealer to limit it just by asking. Of course, the more cash you come up with initially, the lower your monthly payments.

Low Monthly Payments — Since you are only paying off the depreciation on the car — not its full value — your monthly payments are much lower than if you opt to finance the purchase of the entire car over the same period of time.

Easy Turnover — Assuming your car is in good shape, when your two or four years are up, just stroll into the dealer, hand over the keys, and drive out with a brand new car and a new lease arrangement. You don’t have to bother with selling the car or haggling with a dealer over trade-in value. That was all taken care of beforehand.

The Disadvantages

No Equity — Similar to paying rent on an apartment, your lease payments don’t go towards owning anything. Unlike traditional financing, you can’t look forward to the day when the payments will stop and you can drive your own car free and clear.

Lack of Flexibility — You pay a big penalty if you want out of the lease before the full term. Bailing out early may cost you as much as six extra months of payments, depending on your leasing company.

You May Pay Extra — Most leases charge an extra 12 or 15 cents for each mile you drive over a certain limit. Typically the lease agreement grants 12,000 to 15,000 miles per year. (Drivers average 15,000 miles per year.) Also, you’ll have to pay up for any damage to the car beyond normal wear and tear when you turn it in. One way to avoid the mileage charge is to buy more miles at a reduced rate (of around 10 cents) up front.

Insurance May Come Up Short — If you total the car or it gets stolen, your insurance will only reimburse you for the car’s market value, which might not cover what you still owe on your lease. You can buy extra “gap coverage” to protect against this, and some lease deals include it automatically.

Questions to Ask Yourself

1. Do you need your cash?

If so, leasing makes sense, because usually you will put less money down than if you buy. In many cases, dealers will waive a down payment. You need only come up with $1,000 to $2,000 for fees, the first month’s payment, and a refundable security deposit. Sales tax is usually paid monthly as part of the payment. Dealers often will allow you to roll many of the fees into the monthly payment as well by adding them to the price you pay for the car. If you buy a car and finance it, you could easily have to put 10% of the purchase price down as well as 6% to 8% sales tax — perhaps $9,000 on a $50,000 car. You are building up equity, but current cash needs may be more pressing.

2. How often do you want a new car?

Leasing is attractive for people who want new wheels every three years or so. It saves you the hassle of selling your cars, and allows you to move from car to car with relatively steady low monthly outlays and low down payments. But don’t lease if you like to buy a new car every year. Ditto if you like to buy one every seven or eight years. A purchase allows you to either buy a new car impulsively when you have a cash windfall or to forestall a purchase, nursing your old car along, if your income drops. With a lease, you lose a good deal of control over those decisions. If you foresee owning the same car for seven years or more, you’ll save money by buying. That’s because with a lease, you walk away from a car just when depreciation slows and — under long-term financing — equity begins to build.

3. How much do you drive?

Check your odometer. It’s been keeping track of your driving habits for you. The ideal lease customer drives 15,000 miles a year and maintains a car in good condition. (Fifteen thousand is the average yearly amount you are allowed in most leases. Anything above that and you have to pay extra.) If you drive substantially less, you may be paying for depreciation you are not causing. You ought to think about buying. If you drive substantially more and still want to lease, you should negotiate the cost of the additional miles up front. After the end of the lease, many leasing companies charge 15 to 20 cents a mile for the additional miles you have driven, compared with 10 cents a mile if you buy them up front.

4. Do you use your car for business purposes?

If you are deducting a portion of your car’s depreciation from your taxes, you will be able to deduct substantially more if you lease. Interest paid on loans to purchase a car is not deductible. But when you lease, you can deduct depreciation as well as the implicit financing costs. The IRS does, however, limit depreciation deductions for certain luxury cars.

5. Do you worry about your car’s resale value?

If you routinely cart around carpools of kids, a few dogs and lawn maintenance equipment, there’s a good chance you will inflict some damage on the car’s interior, which you may have to pay for later when you turn it in. So, if you’re hard on your car, leasing may not be right for you. Ironically, you should also consider buying if you keep your car in immaculate condition. That way you can build up some equity and take advantage of its spotless interior or any improvements you’ve made when it comes time to sell. But, keep in mind, one of the advantages of leasing is that you get to lock in a resale value now. All those lease agreements mean lots of used luxury cars will turn over in two years, depressing the market value of all of them. If you worry about your car’s resale value, leasing can provide some security.

6. How stable is your life?

If you foresee a move, kids, a divorce or a new job, and you don’t have a clear idea where you will be in two or three years, don’t lease. The money you save on a low down payment and low monthly outlays could be wiped out if you have to terminate early. When you cancel your lease early you typically owe all remaining payments minus allowances for the depreciation that hasn’t happened yet. Basically, you should be almost certain you can stick with the terms of the lease before you sign on the dotted line.

7. Do you trust the company you would be leasing from?

When you buy, you don’t have to trust the bank. You just need its money. But leasing means you are entering a complex financial relationship with a company. It’s best to lease from an auto maker or a large leasing company with a substantial interest in repeat business. And check to see if your lease includes gap coverage, which protects you if your car is stolen or totaled. Most major leasing companies provide it. Also make sure you have a purchase option at a fixed price. Walk away from leases that don’t offer both.


Importation of Used or Second-Hand Motor Vehicles #car #values #bluebook


#second hand vehicles
#

Legislation

Tariff item No. 9897.00.00 of the Customs Tariff prohibits the importation of:

Used or second-hand motor vehicles of all kinds, manufactured prior to the calendar year in which importation into Canada is sought to be made, other than motor vehicles

(a) imported under tariff item Nos. 9801.10.00, 9807.00.00, 9808.00.00, 9809.00.00 or 9810.00.00;

(b) imported by a settler on the settler’s first arrival but not entitled to be classified under tariff item No. 9807.00.00;

(c) forfeited or confiscated for any offence under the Customs laws, or the laws of any province of Canada;

(d) left by bequest;

(e) imported from the United States;

(f) entitled to the benefit of the United States Tariff, the Mexico Tariff or the Mexico-United States Tariff and imported from Mexico

(i) in the 2009 or 2010 calendar year, if the motor vehicles are not less than ten years old,

(ii) in the 2011 or 2012 calendar year, if the motor vehicles are not less than eight years old,

(iii) in the 2013 or 2014 calendar year, if the motor vehicles are not less than six years old,

(iv) in the 2015 or 2016 calendar year, if the motor vehicles are not less than four years old,

(v) in the 2017 or 2018 calendar year, if the motor vehicles are not less than two years old, or

(vi) on or after January 1, 2019;

Statutory Instrument

USED OR SECOND-HAND MOTOR

VEHICLES REGULATIONS

Application

1. These Regulations apply to a used or second-hand motor vehicle that is manufactured before the calendar year in which importation of the vehicle is sought to be made, if the vehicle

(a) has machinery or apparatus permanently mounted thereon and is imported for

(i) use in exploratory or discovery work in connection with oil or natural gas wells or for the development, maintenance, testing, depletion or production of a well up to and including the wellhead assembly, or

(ii) drilling for water;

when a similarly-equipped vehicle is not readily available in Canada;

(b) is received by a resident of Canada as a gift from a relative or friend who resides outside of Canada and the vehicle is to be used for personal purposes and not for any commercial purpose;

(c) is imported by a non-resident for permanent use by the non-resident at a summer or vacation residence occupied by the non-resident in Canada;

(d) is imported by a citizen of another country who is not a resident of Canada and who is employed in a defence establishment of the government of that country in Canada or who is on official military service in Canada;

(e) is imported in accordance with the Non-residents’ Temporary Importation of Baggage and Conveyances Regulations ;

(f) is imported by a contractor engaged in the construction and maintenance of a leased base established in the Province of Newfoundland by the Government of the United States for use by the contractor in the construction and maintenance of those bases;

(g) is a diesel-powered self-propelled dump truck that is mounted on rubber-tired wheels or on rubber-tired wheels and half-tracks and has a rated capacity, by struck volume, of not less than 7.2 cubic metres and, by payload weight, of not less than 15 tonnes and was imported for off-highway use to carry minerals or other excavated materials at a mine, quarry, gravel or sand pit or at a construction site;

(h) is imported by a former resident of Canada returning to resume residence in Canada who

(i) immediately before returning to Canada, had been a resident of another country for at least 12 consecutive months,

(ii) has been continuously absent from Canada for at least six months and, during the period of continuous absence, owned the motor vehicle for at least six months, or

(iii) had emigrated from Canada or had been assigned to extended duty in another country and has been compelled to return to Canada on account of illness, unemployment, educational needs or on account of other personal reasons of a similar nature;

(i) is imported by a resident of Canada returning to Canada who

(i) immediately before returning to Canada, had been continuously absent from Canada for at least 12 consecutive months,

(ii) has been continuously absent from Canada for at least six months and, during the period of continuous absence, owned the motor vehicle for at least six months, or

(iii) had been assigned to extended duty in another country and has been compelled to return to Canada on account of illness, unemployment, educational needs or on account of other personal reasons of a similar nature;

(j) is not less than 15 years old;

(k) is manufactured before January 1st of the model year of the vehicle but imported after that date and before December 31st of that year;

(l) imported as a formula or sports racing car and may not be licensed for use on a public highway;

(m) is imported by a resident of Canada who acquired the vehicle outside of Canada as a replacement for another motor vehicle owned by the resident that was damaged, in an accident that occurred outside of Canada, to such an extent that repair was impracticable;

(n) is a vehicle in respect of which the Foreign Aircraft Servicing Equipment Remission Order, 1992 applies upon its importation;

(o) is imported temporarily and in respect of which a temporary entry remission order, or any other that permits temporary entry for commercial purposes, applies upon its importation;

(p) is forfeited pursuant to the Controlled Drugs and Substances Act ;

(q) is imported temporarily under tariff item No. 9802.00.00 or 9803.00.00;

(r) is goods in respect of which sections 4 and 7 of the Akwesasne Residents Remission Order apply upon its importation; or

(s) is imported by its original purchaser and

(i) the vehicle is imported for the personal use of the original purchaser or the original purchaser’s household,

(ii) the vehicle is not imported for use in a business, in a manufacturing establishment or as equipment to be used by a contractor, and

(iii) the bill of sale for the vehicle does not specify that the vehicle has been used as a demonstration vehicle or by a car rental agency.

Exclusion

2. All motor vehicles referred to in section 1 are excluded from the application of tariff item No. 9897.00.00.


Importing a second-hand or used vehicle #car #rental #cheap


#second hand vehicles
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Importing a second-hand or used vehicle

About importing a second-hand or used vehicle

You can only import a second-hand vehicle into South Africa if you have been granted a permit to do so.

The importation of used vehicles is restricted to protect the local motor vehicle manufacturing industry. Permits are only issued under specifically defined circumstances.

Mainly returning South African nationals and immigrants who have permanent residence are permitted to bring vehicles registered in their names into the country.

Other cars that may be imported include racing cars, vintage passenger vehicles, specially designed vehicles and inherited vehicles.

Before you  import a used vehicle, goods vehicle or trailer  you must first obtain a letter of authority from the South African Bureau of Standards (SABS) .

More information is available in the import guidelines on vehicles and components compiled by International Trade Administration Commission (Itac).

  1. Complete the Application for importation of a second hand or used vehicle form (IE462)
  2. If you are a South African citizen, submit the following documents:
    • identity  document or passport
    • letter from employer confirming permanent employment abroad and reflecting period of employment (salary advices, payslips, job offers, job contracts, tax returns, work permits, etc. are not considered proof of employment)
    • a certified copy of the official foreign vehicle registration certificate
  3. If you are a bona fide immigrant, submit the following documents:
    • a copy of your South African permanent residence certificate
    • a copy of your foreign passport (page with photo and details)
    • a copy of your foreign motor vehicle registration certificate
    • proof of study or research to be concluded where applicable.

How long does it take


How to Price an Antique, Vintage or Classic Car or Truck #dollar #rent #a #car


#used car pricing guide
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How to Price a Used Vehicle

Last Reviewed: December 01, 2015

If you are selling an antique, vintage or classic vehicle you will need to know how to calculate an “asking” price. Most vehicle buyers will expect you to be willing to negotiate the price which means you will start by asking for an amount above what you are willing to accept. If you are one of the many people who dislike bartering like a used car salesman this may prove difficult, but it is necessary. If you advertise that price if “firm” you are likely to lose potential buyers and of those who do respond, many will try to negotiate anyway. Everyone wants to feel like they made a good deal and to some negotiating is how they meet the need. And some see it as a sign of respect; a give-and-take that demonstrates an appreciation for the other person s situation. The asking price is typically about 10 percent above the actual value of the vehicle.

1932 Lincoln Victoria *

The actual value of a vehicle can be easy or difficult to determine, based on the age, make and model of the vehicle. The older and rarer the vehicle is the harder it will be to determine the actual value because it is based on the current market value, its condition, how unique it is and the seller s emotional attachment. Newer vehicles are therefore relatively easy to evaluate because they are not rare, the condition is usually a simple factor of appearance and mileage and the seller is not likely to be emotionally attached. However older cars are a different story. Value guides such as NADA or Kelly Blue Book are good places to start – but do not stop there.

The next step is to look at the current market value. Search the Internet for the specific year, make and model of your vehicle and see what others are asking. Call other sellers to compare the condition of their vehicles to yours and determine how long their vehicles have been on the market at their asking prices. Look for used car dealers who are selling similar vehicles because they will have already researched the best asking price, watch the automobile auction shows on television, and study the classified ads in your local newspaper.

The next consideration is the uniqueness which is more subjective and while we have an How To Appraise a Vehicle reference guide you may require the help of a professional appraiser. Just like fine wines, there are specific years, makes and models of vehicles that have a unique appeal and/or are particularly rare. Limited edition vehicles such as the Shelby Cobra and one-of-a-kind vehicles such as the Tucker or a past president s limousine will require a knowledge of their sales history and current public interest.

And finally there is the emotional value. If you really do not want to sell the vehicle but must, or just finished an expensive restoration, you are likely to want more that it is worth. However if you are selling one of Elvis Presley s Cadillacs prior to a significant anniversary when there is a lot of publicity you may be able to ask more than it is worth. Here again a professional appraiser may be of some help.


Europe: by train or by car? Travel – Destination Travel #repo #cars #for #sale


#europe car
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Photos: A European tour

By Charles Leocha Travel columnist

updated 4/10/2006 2:01:23 PM ET 2006-04-10T18:01:23

Back in the days of free love and VW buses, the Eurailpass was the only way to travel through Europe. It was the bargain to end all bargains — especially if you slept on the trains.

But today, it’s almost always cheaper to rent a car. Eurailpass prices have increased a lot in the last 30 years, and rental car rates have come down. Solo travelers will usually spend more for a car than a rail pass, but for two or more people traveling together, a rental car is almost always the better deal.

Back in the heyday of the rail passes, auto travel through Europe was an arduous affair. True, there was a small network of superhighways in France, Italy and Germany, but for the most part, the roads in Europe a quarter-century ago were almost exclusively two-lane affairs — and that goes for Great Britain and Ireland, too.

Today, high-speed roadways link all corners of Europe. Trips that once took two days can now be driven in less than 10 hours, and daylong journeys are now four-hour jaunts. Sometimes you have to look hard to find a less-traveled byway.

The rail-pass world

This year, the venerable Eurailpass costs $605 for 15 days of travel anywhere in Europe except the United Kingdom. Discounted Eurailpasses are available for $513, but two people must travel together. Train passes are also available for various country combinations; for example, a France/Spain combination pass sells for $522 (first class) or $459 (second class).

There are also some 10-day in-country passes available; generally, these must be used within one or two months. A 10-day pass for Germany costs $464 (first class) and $324 (second class); a pass for Spain costs $470 (first class) and $385 (second class); and France has similar pricing. The BritRail pass, good for 15 days, costs $702 (first class) and $469 (second class).


Should You Sell or Trade in Your Vehicle? #car #insurance #quotes #comparison


#trade in cars
#

Should You Sell or Trade in Your Vehicle?

You need to consider the tax impact of selling your vehicle outright and buying another vehicle in a separate transaction or trading in your old vehicle for another.

Personal-use Property vs Business-use Property

Keep in mind, a loss incurred on the disposal of personal-use property is not deductible unless the loss was the result of a casualty or theft. However, a gain on the disposal of personal-use property is taxable.

A loss on the disposal of business-use property, on the other hand, is deductible and a gain is taxable.

For example, say you sold a vehicle that you used 80% for business and 20% for personal use and that you incurred a loss. You may deduct 80% of the loss against business income. The other 20% related to personal use is not deductible.

If you sold the vehicle at a gain (which is unlikely), and used the vehicle 80% for business and 20% for personal use, 100% of the gain is taxable.

When disposing of your old vehicle and buying a replacement, you can elect to treat the transaction as either a taxable sale or nontaxable exchange.

Taxable Sale:

  • This is when you sell your old vehicle in one transaction, then buy another one in a separate transaction.

Nontaxable Exchange:

  • This is when you trade-in your old vehicle for a replacement.

Taxable Sale of a Car Used for Business

If a loss would result if you sold your old vehicle, you’re better off just selling it outright rather than trading it in because you can deduct the loss in the year of sale and reduce your taxes.

A loss would occur if the adjusted basis of old vehicle exceeds what you could sell it for (its fair market value).

Nontaxable Exchange (trade-in old vehicle)

When You Should Trade In Your Vehicle:

  • If a gain would result if you sold your old vehicle outright, you’re better off trading it in. This is because you can defer (postpone) reporting the gain by trading it in (exchanging it) for another vehicle. You don’t report the gain on a trade-in.

A gain occurs if.

  • the fair market value of what you receive exceeds the adjusted basis of the vehicle you trade in plus any additional amount you pay for the new vehicle.

Example:

  • You trade in your old vehicle with an adjusted basis of $3,000.
  • The fair market value (FMV) of the new vehicle is $7,500.
  • The dealer allows a $3,500 trade-in allowance for your old vehicle.
  • You pay $4,000 cash for the new vehicle (FMV of new vehicle $7,500 minus $3,500 trade-in allowance).

Your gain is $500 .

Figured as follows:

  • FMV of $7,500 (new vehicle) minus
  • $7,000 ($3,000 adjusted basis of your old vehicle plus
  • $4,000 cash you paid) equals
  • $500 gain.

The depreciable basis of the new vehicle is $7,000 .

Figured as follows:

  • Cash you paid, $4,000 plus
  • Adjusted basis of the old vehicle, $3,000.

The $500 gain on the trade-in is deferred because it reduces the basis of the new vehicle. If you sold the new vehicle the next day for $7,500, you would recognize the $500 gain at that time ($7,500 minus your adjusted basis of $7,000).