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Selling Your Used Car Post 7

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This has been a big enough problem that most states now have exemptions for certain situations. With smog tests, many states now say that “The car must pass the emissions test, or the owner must spend a minimum of $200.00 in an attempt to bring it into compliance.”

Likewise with safety inspections. The final decision on safety inspections is generally made by a department of the state police. If you find an auto shop hitting you with a huge estimate, call the state police and ask what to do. In many states a patrolman will stop by the garage and look for himself.

Cops in the safety division are not automotive newbies. Many have been mechanics, and all of them have been inspecting semi trucks for a long time. If the trooper thinks the shop is gouging you, it’s quite possible they’ll tell the shop: “Forget it. Do front and rear brakes, replace the power steering hose, and she’s good to go.” Remember, cops don’t like crooks much. In states where it’s the new owner who’s responsible for the inspection, we’ve even seen a trooper take the new owner aside and ask “Where are you going to be driving this? No freeway at all? OK … but take it easy, and get those front tires replaced as soon as you can.”

When To Toss It In the Trash Instead of Selling It

A few years ago, California passed a law saying that all used cars had to be sold with a warranty from the seller. (They may have repealed the law since.)

Crazy. If your state has a law like that, and your car is only worth $2,000, we’d say: FORGET IT! Don’t even think of selling it. Give it to a charity, and take the tax writeoff. Who needs that kind of grief?

Yes, the tax writeoff might only save you $500 bucks on your taxes. But if your car is only worth $2,000, any mechanic can find at least $1,000 worth of work that needs to be done, for safety, emissions, or whatever. A complete automatic transmission overhaul alone can run $800. If it needs an engine rebuild, you’re sunk. You could actually lose money.

Note: if you give your car to a charity, make sure you get a signed receipt from the charity, not some little blank form that you can “fill out yourself.” And if for some reason you’re giving a more expensive car to charity, you might want to read this web page, Donate a Car? The guy’s a bit of an IRS worry-wart, in our opinion, but if your giveaway is worth real money, it’s worth a read.


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