Telluride Values

[KJLive]

I bought my 2020 Telluride S for about $35K. I usually dont check used car prices, but was pleasantly surprised to see the 2020 S prices seem significantly higher that what I originally paid!

 

[sprengBoard]

Yep, the entire car market is bonkers. It can be a boon for those that are capable and willing to take advantage of it, especially for Tellurides.

Since this past May, my wife and I have definitely taken advantage:

• 2019 Ram 1500 - bought 06/20 for $26k, sold 05/21 (Shift) for $35.5k... +$9,500
• 2017 Hyundai Tucson - bought 11/17 for $22k, sold 06/21 (dealer) for $24.5k... +$2,500
• 2021 Ford Explorer - bought 05/21 for $33k, sold 06/21 (dealer) for $36.5k... +$3,500
• 2020 Ford Escape - bought 06/21 for $20k, sold 06/21 (dealer) for $24k... +$4,000
• 2021 Honda Pilot - bought 06/21 for $37.5k, sold (Carvana) for $42k... +$4,500

All in all, this year we've made $24,000 on the five vehicles we've sold, plus potentially another $4,000 if my wife sells the VW Tiguan she bought in June.

 

[TheNip73]

Yep, the entire car market is bonkers. It can be a boon for those that are capable and willing to take advantage of it, especially for Tellurides.

Since this past May, my wife and I have definitely taken advantage:

• 2019 Ram 1500 - bought 06/20 for $26k, sold 05/21 (Shift) for $35.5k... +$9,500
• 2017 Hyundai Tucson - bought 11/17 for $22k, sold 06/21 (dealer) for $24.5k... +$2,500
• 2021 Ford Explorer - bought 05/21 for $33k, sold 06/21 (dealer) for $36.5k... +$3,500
• 2020 Ford Escape - bought 06/21 for $20k, sold 06/21 (dealer) for $24k... +$4,000
• 2021 Honda Pilot - bought 06/21 for $37.5k, sold (Carvana) for $42k... +$4,500

All in all, this year we've made $24,000 on the five vehicles we've sold, plus potentially another $4,000 if my wife sells the VW Tiguan she bought in June.

With taxes and fees factored in, some of those trades would not yield much (where I live at least)

 

[Buckeye-TRide]

Do you know whether short term cap gains apply to these sales? $24k in profit could equate to a hefty tax bill come January. Assuming you land in the middle of the income tax bracket at 24% that’s $6k you may end up owing.

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[KJLive]

Yep, the entire car market is bonkers. It can be a boon for those that are capable and willing to take advantage of it, especially for Tellurides.

Since this past May, my wife and I have definitely taken advantage:

• 2019 Ram 1500 - bought 06/20 for $26k, sold 05/21 (Shift) for $35.5k... +$9,500
• 2017 Hyundai Tucson - bought 11/17 for $22k, sold 06/21 (dealer) for $24.5k... +$2,500
• 2021 Ford Explorer - bought 05/21 for $33k, sold 06/21 (dealer) for $36.5k... +$3,500
• 2020 Ford Escape - bought 06/21 for $20k, sold 06/21 (dealer) for $24k... +$4,000
• 2021 Honda Pilot - bought 06/21 for $37.5k, sold (Carvana) for $42k... +$4,500

All in all, this year we've made $24,000 on the five vehicles we've sold, plus potentially another $4,000 if my wife sells the VW Tiguan she bought in June.

Wow! Good for you. The market is crazy right now!

 

[sprengBoard]

Do you know whether short term cap gains apply to these sales? $24k in profit could equate to a hefty tax bill come January. Assuming you land in the middle of the income tax bracket at 24% that’s $6k you may end up owing.

While selling vehicles for a gain can indeed incur capital gains tax, either at normal income tax rates or capital gains rates, the calculation isn't quite so cut-and-dry. The adjusted cost basis is used as the starting point, which can be complicated to figure out when trading a vehicle in. Plus, any tax liability owed from capital gains on vehicle sales can be offset by other capital losses. I will likely owe some capital gains tax, though not as much as one might expect on the surface.

 

[PittPa]

Yep, the entire car market is bonkers. It can be a boon for those that are capable and willing to take advantage of it, especially for Tellurides.

Since this past May, my wife and I have definitely taken advantage:

• 2019 Ram 1500 - bought 06/20 for $26k, sold 05/21 (Shift) for $35.5k... +$9,500
• 2017 Hyundai Tucson - bought 11/17 for $22k, sold 06/21 (dealer) for $24.5k... +$2,500
• 2021 Ford Explorer - bought 05/21 for $33k, sold 06/21 (dealer) for $36.5k... +$3,500
• 2020 Ford Escape - bought 06/21 for $20k, sold 06/21 (dealer) for $24k... +$4,000
• 2021 Honda Pilot - bought 06/21 for $37.5k, sold (Carvana) for $42k... +$4,500

All in all, this year we've made $24,000 on the five vehicles we've sold, plus potentially another $4,000 if my wife sells the VW Tiguan she bought in June.

Your post provides more questions then answers. Unless you own a used car business, WTH?

 

[SC300ES]

I can't tolerate going into a dealer to purchase a car every few years or more. Can't imagine buying and selling all these cars in the last two years. Unless it's done online. Still too much work.

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[sprengBoard]

It all started when we got a notice in the mail from the dealership my wife bought her Tucson from that they wanted to buy it for $xxx, which was a few thousand more than she paid for it 3 years prior. I decided to get a few offers elsewhere for gits ‘n shiggles, then got some offers on my Ram.

The offers we got were too good to pass up, so I got an Explorer and she got an Escape. We both decided that we weren’t in love with those vehicles and with the market the way it is, we were able to trade them in for a profit. Wife got a VW Tiguan, and I got a Honda Pilot (didn’t know Tellurides could be had at MSRP at that time).

Found out Tellurides could be ordered at MSRP, so I placed an order for one. It should arrive in a couple weeks so I’ll be selling my Pilot.

Wife loves her Tiguan, but wouldn’t mind something a bit bigger (Sorento) or with more tech (Rogue).

I’m no stranger to buying/selling cars, not even including this year. In the past decade I’ve bought/sold 11 cars (Telluride will be #12). I always get financing before stepping foot in the dealership, and negotiate via email. All of those 11 vehicles have been purchased new, and most were bought for 15-20% below MSRP.

To be honest, I rather enjoy the process. It’s like a game... I've also thought about creating either a blog or fell-blown informational website about the process.

 

[Buckeye-TRide]

It all started when we got a notice in the mail from the dealership my wife bought her Tucson from that they wanted to buy it for $xxx, which was a few thousand more than she paid for it 3 years prior. I decided to get a few offers elsewhere for gits ‘n shiggles, then got some offers on my Ram.

The offers we got were too good to pass up, so I got an Explorer and she got an Escape. We both decided that we weren’t in love with those vehicles and with the market the way it is, we were able to trade them in for a profit. Wife got a VW Tiguan, and I got a Honda Pilot (didn’t know Tellurides could be had at MSRP at that time).

Found out Tellurides could be ordered at MSRP, so I placed an order for one. It should arrive in a couple weeks so I’ll be selling my Pilot.

Wife loves her Tiguan, but wouldn’t mind something a bit bigger (Sorento) or with more tech (Rogue).

I’m no stranger to buying/selling cars, not even including this year. In the past decade I’ve bought/sold 11 cars (Telluride will be #12). I always get financing before stepping foot in the dealership, and negotiate via email. All of those 11 vehicles have been purchased new, and most were bought for 15-20% below MSRP.

To be honest, I rather enjoy the process. It’s like a game... I've also thought about creating either a blog or fell-blown informational website about the process.

Depending on your state you could likely need a dealers license to sell that many cars as it then blurs the line between a business and the simple sale of personal vehicles (many states it’s 4-5 in a year). Not to mention the impacts of this on car values on a large scale which simply drives up cost for the end consumer. The scary thing about the car market right now is that the bubble only seems to be growing and the eventual pop has the potential to harm a lot of people. Not saying the folks that agreed to a $10k dealer markup are blameless but if and when the bubble pops god help them if they ever need to sell their vehicle. Being underwater $10-20k on a vehicle would be catastrophic for many families.

 

[sprengBoard]

Depending on your state you could likely need a dealers license to sell that many cars as it then blurs the line between a business and the simple sale of personal vehicles (many states it’s 4-5 in a year). Not to mention the impacts of this on car values on a large scale which simply drives up cost for the end consumer. The scary thing about the car market right now is that the bubble only seems to be growing and the eventual pop has the potential to harm a lot of people. Not saying the folks that agreed to a $10k dealer markup are blameless but if and when the bubble pops god help them if they ever need to sell their vehicle. Being underwater $10-20k on a vehicle would be catastrophic for many families.

Yep, that's true about the dealers license. I'm personally just about at the max for Texas (two of the ones I listed were in my wife's name).