Tough decision on my 5th gen synergy???

[davista04]

I recently won the win synergy camaro sweepstakes and have the option of building a 2012 Special Edition Camaro Synergy from the ground up and having it built at the plant just for me. Now i'd love to have this car but i have a six month old and the taxes i have to pay on this car is giving me nightmares lol. I'm contemplating either selling it as a private party seller or selling it back to the dealer ship but i'm worried that if i sell it to the dealership, they'd try to low ball me and make it more of a headache than this whole process is. Is there anyone that can give me some advice on the matter? Thanks.

[lurker]

Originally Posted by davista04

I recently won the win synergy camaro sweepstakes and have the option of building a 2012 Special Edition Camaro Synergy from the ground up and having it built at the plant just for me. Now i'd love to have this car but i have a six month old and the taxes i have to pay on this car is giving me nightmares lol. I'm contemplating either selling it as a private party seller or selling it back to the dealer ship but i'm worried that if i sell it to the dealership, they'd try to low ball me and make it more of a headache than this whole process is. Is there anyone that can give me some advice on the matter? Thanks.

So you don't have $4000 to pay taxes... but you're worried that a dealer will lowball you on something you got for free? Looks like maybe $20K of found money to me, lowball or not.

[davista04]

How do you figure only 4k? I'm not paying sales tax, I have to pay a prize tax which could be as much as a third of the fair market value

[chevy 3]

Get a loan. The payments can't be that bad for say 12000.

[jdcvictory11]

Is it a Synergy SS or LT?

[SixGracing]

Damn, even if it was $15K I'd be all over keeping that. Most of us, myself included had to pay $40K for these cars when they first came out.

[Kahdir]

Originally Posted by chevy 3

Get a loan. The payments can't be that bad for say 12000.

As some might not know... prize taxes are high. They are even higher on add-ons in some cases... (you could pay as much as half on superchargers or engine swaps)
Shows on the Powerblock and Pimp My Ride have special lots filled with cars the original owners could not pay the taxes on.

[jrisebo]

Even at 50% tax, thats still a camaro at 50% off. Get a loan, 2-3% interest if good credit and finance for 4 years. Hell, one day a week at a part time job will pay that, and in 4 years, you have a paid of camaro, and in 6 years, think of driving that baby to school with your kid and dropping them off each day..think of the strange that will envy you with your cute kid and your sibling.

[invaderzim]

Originally Posted by Kahdir

As some might not know... prize taxes are high. They are even higher on add-ons in some cases... (you could pay as much as half on superchargers or engine swaps)
Shows on the Powerblock and Pimp My Ride have special lots filled with cars the original owners could not pay the taxes on.

yea but just about any bank will loan a third or even half the value of the car in Exchange for putting a lien on it at a good interest. specially ones own bank. or if not possible to keep just resell it to the dealership. how can you worry about getting lowballed on something that cost you nothing and you can't afford to keep? would they rather just lose it?

[papabearcamaro]

Wish I had your problem. lol

[bannonm]

Originally Posted by davista04

How do you figure only 4k? I'm not paying sales tax, I have to pay a prize tax which could be as much as a third of the fair market value

Do prize winnings work like work bonuses? If so, you are initially taxed at a 40% rate and then when you file at the end of the year the value of the prize is just added to your gross income. Example, you make $100K a year and win the car valued at $40K, so this year you make $140K and are taxed at whatever rate is applicable. Depending on what your adj. gross is, you might get the car as low as 15%-20%. Now's the time to talk with a tax adviser while they are still around.

[Kahdir]

Originally Posted by bannonm

Do prize winnings work like work bonuses? If so, you are initially taxed at a 40% rate and then when you file at the end of the year the value of the prize is just added to your gross income. Example, you make $100K a year and win the car valued at $40K, so this year you make $140K and are taxed at whatever rate is applicable. Depending on what your adj. gross is, you might get the car as low as 15%-20%. Now's the time to talk with a tax adviser while they are still around.

Originally Posted by invaderzim

yea but just about any bank will loan a third or even half the value of the car in Exchange for putting a lien on it at a good interest. specially ones own bank. or if not possible to keep just resell it to the dealership. how can you worry about getting lowballed on something that cost you nothing and you can't afford to keep? would they rather just lose it?

With recent contests of my employer, I believe this has to be paid up front. The adjusted income only applies to state with registration, I don't think federal cares... it's a gift that they want a piece of. Some are able to get loans, others may already be over-extended due to mortgage, 2nd mortgage etc. I recall a few instances where my employer had to include travel for the contestant and transport for the vehicle -the winner couldn't drive stick...

To the winner of the Synergy Camaro, there is usually an out clause of cash value... if you are unable to cover the taxes trough separate funding, see if the contest holder will pay the cash value (usually less than the value of the prize -minus taxes & fees... est $25k)

[Caspers2SSRS]

Keep the car and turn owning it into a opportunity. Use the car for charity work..............picking up the ill and elderly for medical appointments, ie. Inc yourself in the adventure, put the car on the books, the cost, the upkeep and taxes may not be as bad as they first appear..............talk to your accountant asap. Enjoy!

[powerslave]

Originally Posted by davista04

I recently won the win synergy camaro sweepstakes and have the option of building a 2012 Special Edition Camaro Synergy from the ground up and having it built at the plant just for me. Now i'd love to have this car but i have a six month old and the taxes i have to pay on this car is giving me nightmares lol. I'm contemplating either selling it as a private party seller or selling it back to the dealer ship but i'm worried that if i sell it to the dealership, they'd try to low ball me and make it more of a headache than this whole process is. Is there anyone that can give me some advice on the matter? Thanks.

You should live in Canada, no tax on winnings... that's the only good thing about here though haha!

Anyway, I would keep the car. I wish I had that problem trying to decide if I want a 50K car for 15K... or whatever.