OMG, did what I think just happened...happen?

[Jester]

Let me relate a short story to you all. Last February (I believe), I went to the Portland Auto Show with some friends (Edo included) and I decided (after much prompting from Edo) to buy a raffle ticket for $100 to benefit the Dougie Center for Grieving Children. My father died a few years back, and my sister (7 years old) went with my mother to a counseling session quite similar to what the Dougie center does. So, I thought, why not, its a charitable donation...

Now, it is May. On May 5th the Dougie Center held the raffle drawing, which was held at a $125/plate benefit dinner. I did not go. Monday afternoon, after I figured the prize was won and some lucky winner was lone gone with it (the very prize I KNEW I had no chance to win). Then, I recieved a phone call. What did they tell me? Well of course they told me I had won my very own, 2001 Porsche Boxter.

A moment to let the shock wear off (probably will wear off for you all much sooner than it will for me).

.
.
.
.

Ok, now here is the deal, I JUST bought a 1997 Mustang GT (got a loan through my CU). I also still have a 95 V6 Mustang, that I need to get rid of. I have 3 sports cars! I know this sounds like a dream, but I can't afford to insure 3 sports cars. Part of me wants to keep the Boxster, part of me wants to sell it and pay off the Mustang. Either way the V6 pony has GOT to go. Either way I come out pretty close.

If I keep the Porsche, no payments, higher insurance. If I keep the GT, payments, but less insurance.

The other problem is a little thing called TAX. No matter what I believe I have to pay a "gambling tax", and I am a Washington resident and I have to pay 7.x% sales tax.

My head is still spinning, and the reality of owning a Porsche still hasn't hit me...

I pick up the car on Thursday.

Any input or whatever you think would help

Please no "I hate you's"...I get enough of that at work...(coughEDOcough).

Sorry for being so longwinded...I am done now...off the soapbox for now.

------------------
1997 Mustang GT
Dreams of Future NSX

 

[hejo]

Easy! Sell all of them and go get the NSX you've been dreaming of! Don't sweat the tax or insurance. If you get it down to one car then the insurance will be about the same as 2 cars. Cut a deal where the tax is paid as part of the trades.

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Hal Jones
Lake Oswego, Oregon
95T Blk\Blk SportShift

 

[Jester]

I think I might end up doing that eventually...but I think, just for the summer at least, I would like to own a convertable once in my life (I know they are a pain in the ass and all that stuff, but one summer at least...). I never would have bought one, but hey...free is an excellent price.

 

[HapaHaole]

Well if I were you just take the Porsche and sell off your mustangs..

Now I dont know when you have to pay the tax on it yet sell the porsche before then and just have fun for awhile.

 

[justin hall]

congratulations!!!!

getting rid of the mustangs is a no brainer, but I would also get rid of the Boxster. Nice car, but doesn't hold a candle to the NSX - not even the Boxster S.

Want a convertible? By a targa. My wife has a 328ic, and a targa is so close to her convertible it may as well be one!

You may want to look into finding a dealer that sells both Porsche's and Acura's to get full value on the Boxster. That way you wont be dealing with a dealer wanting to give you less than wholesale as they will be moving the car to another dealer. Niello Acura in Sacramento is also a Porsche dealer.

This is a great opportunity to achieve your dream - dont look a "gift horse in the mouth".

 

[Schatten]

I have to say, as a former Mustang owner, you gotta part with the Mustangs - yes both of them. The Boxster will be a step up in handling, especially how a 'real' car feels. And what do I mean by that? Well, you'll see when you pick it up. No more live axle in the rear that you gotta watch out for.

So, sell the Mustangs, be happy with the Boxster until you find the NSX you want, then sell the Boxster or trade it in for it.

Congrats (definately not to flame) on the winning!

------------------
2001 S2000
http://www.buymeaferrari.com

 

[Edo]

Dave, you're a jerk.
yep. A total jerk.
I knew I shoulda bought 2 tickets (Hence buying your ticket) instead of only buying 1 and making you buy the next one...
Lady luck is so cruel...
and to top it off, my NSX's Dali clutch blew out today. According to Mark Johnson, it is the first one ever to fail mechanically..

 

[hejo]

Originally posted by Edo:
and to top it off, my NSX's Dali clutch blew out today. According to Mark Johnson, it is the first one ever to fail mechanically..

Do you think it had anything to do with those 5k clutch dumps? Hehe

Just kidding man. That's a really a shame. Post whet the post-mortum is on the clutch.

 

[Jester]

Maybe it's Karma Ed...
You are the jerk, I'm the nice guy. Hence, your clutch blows, I win a Porsche.

------------------
1997 Mustang GT
Dreams of Future NSX

 

[scottjua]

Porsche = Warranty...cheaper in the long run than the Stangs and a better car to boot. Beside if you want to sell it, it should hold much of it's value.

You COULD trade it in for an NSX...but if you think Insurance costs are bad...wait til you have to buy another Spare for the NSX... for example...900$

My friend Jim just bought one and has been finding out that all the LITTLE things are more than expected...and they add up. Don't get me wrong...the NSX IS my choice...but when it comes to a FREE Porsche with a Warranty...or a 5+ year older NSX (comparing dollar value here)...I'd run the Porsche for a while. Regular maintenance would be similar I would think...but the replacement parts cost will be a different story.

Congrats either way!!!

------------------
Got dat ol' vee six cilnder inder?

http://www.nextestdrive.net

 

[ScienceofSpeed]

Scott -- What were the problems?

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www.ScienceofSpeed.com - Click for more info
www.NSXClassifieds.com - The internet's only exclusive NSX Classified site!

 

[ANYTIME]

First thought that came to mind on you winning the Boxster. If you want to drive it just for the summer, when you register a new vehicle, book value depreciates approx. 10%. So if you register it and trade it in tommorrow(or drive for the summer), it's worth 10% less because it's now considered a USED car. Dealers can demo(drive it like they stole it) for 5000 miles and take a very small hit on it. If you want a NSX, get it ASAP before your Boxster goes through any book changes(this happens every 3 months). Being around the car business(around, not in) brings out the worst in people, SORRY. Take care, John.

 

[erobbins]

It's strange that you have to pay state sales tax on something that you won in a raffle. I've never heard of this before. You didn't buy anything - this should be no different than winning cash in a casino... you don't pay sales tax on those winnings, do you?

What I would be concerned about is the federal income tax on the realized gain. Depending on your current tax bracket, you could end up being bumped up a bracket and having ALL of your income taxed at a higher level.

In any case, if the retail value of the Boxster is $50k, even at 28% you owe Uncle Sam about $15k. You may have to sell your other cars just to pay this tax liability. The basis for the amount of income is the "fair market value" of the car... this could be more OR less than MSRP based on what the vehicles are selling for new if it has not been previously titled or USED if the car has been titled by someone (like the charity holding the raffle) before it gets to you.

Good thing is that you don't have to come up with this money until 4/15/2002. You shouldn't have to pay estimated taxes on this income anomaly under the safe harbor clause.

Disclaimer: I am not a CPA, tax attorney, etc., etc.... I'm just a guy who pays attention to tax laws because I disagree with most of them.

EDR