Seriously. Haven’t recd yet, won’t drive it. Will try dealers. Is MSRP same as Monroney price? Is dealers’ selling price yet another? If I sell under “constructive ownership,” not taking title, what happens about taxes, licensing, registr, title fees, deliv chgs, etc? What else should I know? In NYC, never owned or bought a car.
You have never owned a car and I have never won one. The cost of getting rid of this car could be affected by laws from more than one agency. Lets us know how you won the car, that is the part that interests me. What kind of things are the “givers of the car” telling you?
It could be worse you know,you could have run into a 2011 Denali instead of winning one,
The easiest option is to see if the dealer delivering the Denali is interested in buying it from you for sale on their lot. If it gets titled to you then it technically becomes a used car even if you put no miles on it. That means the dealer can’t sell it for full price. I’d guess a 30% off MSRP might be a decent deal for the dealer to buy it from you.
If you have to sell it privately then the same 30% off the MSRP might get you an interested buyer.
Titling laws differ state to state, but I’ve never heard of “constructive ownership” as an option for titling a vehicle. If you can take ownership without having a title issued in your name that is a new one on me. That’s why the delivering dealer is your best option to make a deal.
If you don’t need the car (or the money) and don’t want to pay taxes on it, you could donate it to charity.
Your starting point is the invoice price, less 6%. This is what the dealer would pay GM for the truck. The invoice on a 2011 Acadia Denali FWD truck is $41,059; your starting point is $38,595 plus options. You can find out what the invoice price on options are here:
Then again, isn’t there a cash option in this sweepstakes?
I’ll handle that for you and you will get triple what the truck is worth. Just send me a processing fee of…
Maybe a visit to Motor Vehicle Dept. is in order. Those people know the answers.
Wasn’t there an option to get cash in lieu of the car? If you can do that, then all is well.
I won the car because I showed up in the right place at the right time – the taping of a tv show. And I don’t even watch much tv. I had no idea they were doing a giveaway and I ended up being “It” for that particular day of the project. I’ve never owned a car because I live in a place where people walk or take buses, subways and yellow cabs, or rent cars to get across the rivers (estuaries, really) and beyond…Some of what the “sweepstakes administrators” tell me verbally contradicts text in the “Official Rules,” but it may be in my favor, maybe not. I’ve been told by a lawyer that the power is all theirs, that they can change just about anything and I have no recourse. But whatever I get is a windfall. Is that right word? All I know as of this moment is that a vehicle is a-comin’ one of these days.
Per Uncle Turbo’s response…
Yes, I’ve already determined to see if the dealer wants to by the Denali. According to my Sweepstakes Administrator contact, I’ll be able to redirect delivery to whichever dealer I arrange with (there are 3 in my immediate area). He also told me that I’ll have choice of color, so I’ll let the dealer decide. The CA lawyer-friend told me, however, that the Sweeps people can do whatever they want, so I’m not to take anything they say as gospel until I see it…The GMC website shows MSRP of $43,220 for 4WD and $45,220 for AWD. 30% of that (no idea which I’m to get) isn’t too shabby for shekels that drop into my lap…It was the CA lawyer who mentioned “constructive ownership.” I’m going to consult an NY lawyer and accountant on that and other matters. Loads of questions keep occurring to me despite constant reminders from friends and myself to let this be fun.
HELP WITH JARGON, PLEASE. Is MSRP the same thing as the price on the Monroney sticker? What is ARP (Approximate Retail Price), used in the “Official Rules” apparently synonymolusly with MSRP – is ARP a “known” phrase in car stuff? What is “sticker price,” a phrase I’ve heard all my life when people talk about buying cars? Another one of the first six people who responded to my initial post used another term which I’ll ask about when I get there.
Great idea, yes, I mean that, for someone in a more flamboyant income bracket than I. Much more flamboyant.
Ah, you did define “invoice price.” I missed that on first reading.
Did I do something wrong? I thought it was the GMC site that showed MSRP of $43,220 for FWD. I’ll have to go back there. Could I have seen it at Edmunds.com?
Options are extras, anything one chooses to add beyond features that are standard with the basic model? I’m certainly not ordering any, but a curious thing happened. The “official rules” of the sweepstakes state that I’m responsible for taxes/license/delivery/whatever other related charges. It also states that the MSRP is $50,450. My contact told me in conversation that GMC will cover those costs, plus he’ll let me know if GMC is putting in any extras features. So I have no way of knowing if this $50,450 reflects add-ons or offsets tax/license/etc? The CA lawyer told me everything is in their hands.
As to cash option, the lawyer told me no, it’s specifically excluded in the “rules.” The givers have the option of offering cash instead and I can ask if they’ll do that, but they are not required.
itsanders, I just realized I’m not clear on your message. Hope you’ll clarify. What do you mean by $38,595 being my starting point? And, does the dealer pay “invoice price, less 6%” or just “invoice price?” In the case of the latter, what is the significance of substracting 6%? I feel as though I’ve just landed here from another planet.
I’d try to make a deal with the delivering dealer. The invoice price is more or less what he dealer pays for the vehicle, but there are “hold-backs” and other incentives we aren’t supposed to know about, that change that number, too. You’ll get less than the invoice for certain. How much less is open to discussion. You’ll pay income tax on the value of the prize, but that’s going to be the MSRP or the Monroney price, which is the same thing. Somehow it would be good if you never own the car, because if you sell it to the dealer after owning it, it’s “used” and the dealer might have to pay sales tax.
I wonder if you can sell your right to accept the car. It’s legally possible, but might be against the TV show’s rules.
You need a lawyer who understands car transactions, tax laws and reading contest rules.
The MSRP I’m referring to is the “sticker price” that would be posted on the window of the car if it was on a dealer’s lot. The sticker price includes all the options and shipping charges. Some dealers add other junk (upholstery protector, etc.) to jack up the price some more.
You can give the dealer whatever discount you wish. I went with 30% because things like factory incentives and other manufacter sponsored programs won’t apply in this case. The dealer invoice is not going to be nearly 30% off the sticker price but there are other hidden ways the mfg’r compensates dealers so even when they sell a car below invoice they still make money. Since you don’t know what the incentives are I think 30% off the sticker price should get a dealers attention.
Others currently in the car selling business might be able to give you more specifics. And, more accurate numbers.
Thanks, WentWest. You’ve clarified more for me.
I will try to deal with the dealer as first choice. The CA lawyer (also a went-wester) I spoke to mentioned selling under “constructive ownership” rather than taking title. I will speak with an NYC (my town) lawyer about that and the “official rules,” etc.
To repeat, I want this to be a fun experience, but I keep getting worked up over it. I don’t want to be greedy and scratch in the dirt for pennies, but I also don’t want to sell for less than would be fair to me or make mistakes out of ignorance that will cost me unnecessarily.
Check with an Accountant or lawyer. If you take delivery of this vehicle you’ll have to pay tax on the value of the vehicle…not sure what that rate is for winning it is.
See if you can get cash instead. I’m sure a dealer would work something out with you. May not be msrp…but maybe dealer cost or a little less.
Invoice price on a base Denali is $41,059 according to Edmunds. If you take 6% off for the average finance costs, you get $38,595. GM and dealers found over the years that they could save accounting costs if the dealer paid interest on the $38,595 until the truck is sold. Historically,6% or less is what it costs while the vehicles sit on the lot. Since your truck doesn’t sit on the lot, the dealer might pay as much as they would for any other, equivalent truck. BTW, Edmunds lists the MSRP at $43,220, too. You can trust the invoice price.
The difference between the actual MSRP and the extra money ($7320) is probably what they assume your income tax increase will be from this prize. Ask their attorney if that is the case.
Find out if you can take th cash instead. Often with prize winnings the winners will be allowed the wholesale cash value instead of taking the vehicle.
You will pay federal taxes on this as “unearned income”. It may even kick you into a higher tax braket overall, which means you’ll also be paying higher taxes on your “earned” income. If you sell it you may also be taxed for “capital gains”. If NY has an income tax, you’ll have to pay state taxes also. In NY there may even be a higher tax rate for “unearned income”.
Oh, yeah, and you’ll be responsible for all of the fees and charges you mentioned. Isn’t winning wonderful?
There’s a new wrinkle that I wasn’t expecting. I had a call from the company that handles GMC promotions. I’d thought this person would ask what I want, but it turns out that she’s going to put me in touch with a local dealer from whom I’d either choose a car from stock or, if I want to order, the dealer would handle it and the car would take about 8 weeks to come in. The 1099 I will receive will be for $50,425 regardless of what I take. This gives me room to select extra options to bring the MSRP to that number – or get a 1099 for a value higher than the MSRP of the vehicle I actually “receive.”
I told the representative that I wanted to call all dealers in my area to see if one wanted to buy from me. Also told the rep that I want to sell without taking title (“constructive ownership”), something she knows nothing about; she said it’s something to be discussed with the dealer. She also said that, if the dealer she had in mind does not want to buy from me, she’ll see how to proceed. I will stand firm on not being railroaded into a dealer that’s going to cause me more work and further devalue the car – unless I’m told “take it or leave it.” I’ve been told that they can lay down the law.
I have yet to check the website one of you gave me last week to find dealer invoice prices for extra options. Also have yet to check edmunds for dealer invoice prices on the basic Acadia Denali 4WD and AWD.
Again, I’ve never bought a car and am having some difficulty adjusting my thinking to working pretty much the whole choice thing out with a dealer rather than with the manufacturer’s rep. I’m asking for some help in planning this out. It’s probably relevant to say that I thought I’d leave the choice of car color and the extra options up to the dealer, as that’s the individual who certainly knows more than I about what people are likely to want.
My apologies for not being briefer, but I that’s not my strong suit. Any ideas on how I can organize this on my end? Thank you so very much.
I forgot this: How do I work with a dealer? He’s not going to sit and hold my hand and walk me through every step and every word. Do I go and choose options to add up to the $50,425 MSRP of the 1099 I’ll get? Do I sit with paper and calculator? Or do I make some notes, come home and mess with paper/calculator/anguish and then go back to finalize? As I wrote in an earlier post, I don’t want to be greedy, but I don’t want to give away what is reasonable for me to expect/ask for/want.
Is it possible for me to locate dealers or salespeople in this website who can give me some input and guidance?
If the dealer/salesman wants to make a good impression(a happy customer tells 10 friends, an angry customer rants on the internet), they’ll talk you through the process