Dealer Breaking News.

[MarvBear]

Dear MARV, The state of Louisiana has changed their trade-in tax credit rule.  They are no longer allowing trade-in credit for a vehicle that is owned by a spouse.  The only time trade-in tax credit will be granted is when the vehicle is titled in Louisiana and is owned by the buyer purchasing the new vehicle. Please review your pending accounts for the state of Louisiana, if the trade-in vehicle used for tax credit was owned by a spouse who is not listed on the vehicle being purchased, you will need to recalculate without trade-in credit. The only way to apply for trade-in credit for a vehicle traded-in by a spouse is if the buyer titles the vehicle in their name first in the state of Louisiana. If you have any questions, please reach out to our Dealer Support Services at (561) 276-3040. Best regards, Your DMV Nationwide Team at Interstate Title Solutions, Inc.

[IndyPoolPlayer]

What a crock of dung.

[centex]

15 hours ago, IndyPoolPlayer said:

What a crock of dung.

I am curious what prompted this change...but not so curious as to go digging through that archaic thing that Louisiana calls a system of laws.

 

I can envision reasons WHY this could have occurred though... 

[MarvBear]

1 hour ago, centex said:

I am curious what prompted this change...but not so curious as to go digging through that archaic thing that Louisiana calls a system of laws.

 

I can envision reasons WHY this could have occurred though... 

Governmental greed for money.

[centex]

3 hours ago, MarvBear said:

Governmental greed for money.

In SOME money-hungry States, that might almost have made sense, but I think Louisiana is almost as easy and cheap as Texas when it comes to a gift transfer (which is what this would be in most instances).  Last time we moved a vehicle here in Texas between the family, it was ten bucks.  But how often is one member of a household showing up to trade a vehicle that is ONLY in the name of someone who won't be on the new note? 

 

The situation where it DOES make sense is to prevent certain transfers of assets in households beset by domestic abuse.  I know there are situations where one spouse has tried to take a vehicle belonging to the other and trade it to leave the abused without a vehicle.  But it is not what I would have considered a COMMON occurrence that becomes a revenue generator...

[MarvBear]

2 hours ago, centex said:

  But how often is one member of a household showing up to trade a vehicle that is ONLY in the name of someone who won't be on the new note? 

An extremely common occurrence. 

[Zanshiro]

Typically we could use a gift form and donation form to take care of it, and title transfer fees were around $20.  I would assume that's still a valid workaround to get the tax credit, and would 9/10 times of a decent vehicle be more than worth the effort for the customer to fill out two forms.  I think up here I've only ever titled ONE vehicle in LA, and it was simple enough, but I'm glad I don't have to go research this too 😛

[MarvBear]

Not here in Florida.  I just send them out to the DMV just down the street and they come back with the new title in hand with the proper name on it.  Florida says no to title jumping.

 

PITA

[centex]

1 hour ago, MarvBear said:

Not here in Florida.  I just send them out to the DMV just down the street and they come back with the new title in hand with the proper name on it.  Florida says no to title jumping.

 

PITA

Well, yeah...there are times that they put the DUH! into Flori-duh.  Not sure that Louisiana is that much of a pain though...but I only bought one vehicle in that State and no trade was involved.  But they did do the paperwork to get Texas tags and title for me (in addition to flat-bedding the car to me at no additional cost). 

 

Having bought in different States over the years, I just know that different places can be more of a pain than others...

[IndyPoolPlayer]

On 11/18/2020 at 11:47 AM, centex said:

But how often is one member of a household showing up to trade a vehicle that is ONLY in the name of someone who won't be on the new note?

 

On 11/18/2020 at 12:17 PM, MarvBear said:

An extremely common occurrence. 

*RAISES HAND*

 

As part of our marital divestiture I traded in a vehicle that was in my name only and she bought her vehicle in her name only.

[centex]

On 11/20/2020 at 4:06 PM, IndyPoolPlayer said:

 

*RAISES HAND*

 

As part of our marital divestiture I traded in a vehicle that was in my name only and she bought her vehicle in her name only.

But that is very different from her showing up to trade a vehicle titled only in YOUR name and getting something that would only be in HER name.  And THAT is the scenario that the new legislation seems designed to prevent. 

[IndyPoolPlayer]

On 11/20/2020 at 5:06 PM, IndyPoolPlayer said:

*RAISES HAND*

 

As part of our marital divestiture I traded in a vehicle that was in my name only and she bought her vehicle in her name only.

 

On 11/23/2020 at 10:21 AM, centex said:

But that is very different from her showing up to trade a vehicle titled only in YOUR name and getting something that would only be in HER name.  And THAT is the scenario that the new legislation seems designed to prevent. 

Sorry I think I over-simplified my statement. What you said is exactly what we did. I signed the back of the title since it was in my name only, drove it to the dealership and dropped it off. She then traded that car in for her new one bought in her name only.