Do I keep 2 vehicles or 1 vehicle?

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Dynasty90
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Do I keep 2 vehicles or 1 vehicle?

Post by Dynasty90 »

I am seeking outside perspective on a vehicle scenario I have been presented with.

I have the opportunity to purchase a 5 year old truck valued at 35k for 5k (approximately 85% off). The truck is well maintained and will last for many years. It has a gas guzzling motor and averages approximately 13-15 mpg. The fuel tank has a capacity of 36 gallons.

My current vehicle is valued at 9k and also will last for many years. It averages 30 mpg. The fuel tanks has a capacity of 17 gallons.

The new to me truck will be a daily driver. My commute to work is approximately 60 miles round trip, 5 days per week, 60% highway miles.

I can afford to keep both vehicles, but does it make sense to have both? I figure I would use my current vehicle as the primary commuter and the truck more of a handy to have vehicle. Paying to full the gas tank on the truck will make me cringe every time. Especially with the increasing gas prices. However, I know I can keep the truck for many years and still sell it for more than I paid for it even with the fuel and maintenance costs over the years.

Does it make mathematical and financial sense to keep both vehicles?
hi_there
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Re: Do I keep 2 vehicles or 1 vehicle?

Post by hi_there »

It doesn't make sense to drive the gas guzzler truck for years as a daily commuter. Why don't you just buy it for $5k and flip it for more money as soon as you can?
IMO
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Re: Do I keep 2 vehicles or 1 vehicle?

Post by IMO »

Dynasty90 wrote: Thu Apr 01, 2021 9:57 pm I am seeking outside perspective on a vehicle scenario I have been presented with.

I have the opportunity to purchase a 5 year old truck valued at 35k for 5k (approximately 85% off). The truck is well maintained and will last for many years. It has a gas guzzling motor and averages approximately 13-15 mpg. The fuel tank has a capacity of 36 gallons.

My current vehicle is valued at 9k and also will last for many years. It averages 30 mpg. The fuel tanks has a capacity of 17 gallons.

The new to me truck will be a daily driver. My commute to work is approximately 60 miles round trip, 5 days per week, 60% highway miles.

I can afford to keep both vehicles, but does it make sense to have both? I figure I would use my current vehicle as the primary commuter and the truck more of a handy to have vehicle. Paying to full the gas tank on the truck will make me cringe every time. Especially with the increasing gas prices. However, I know I can keep the truck for many years and still sell it for more than I paid for it even with the fuel and maintenance costs over the years.

Does it make mathematical and financial sense to keep both vehicles?
I think you post is inaccurate.

Will the new truck be your daily driver (you say this) and then you say your current vehicle will be the primary commuter (this seems to contradict what was previously said)?

This isn't as straight forward as one thinks.

If your driving the truck to commute, then probably no, your gas costs will be twice as much and this will likely not offset the savings in wear/tear/depreciation of your current car. Other costs such as insurance/registration have to be factored into the equation. If you want to keep your life simple, then no, you just keep 1 vehicle with the better gas mileage.

But then there is the personal aspect. If you offered me a well maintained 5 yr old truck for 85% off at 5K, I'd take it but wouldn't commute in the truck. But we like to do activities that often are either not possible with a smaller vehicle or are just simply not convenient. The truck wouldn't be driven daily but on a regular basis on weekends and recreational trips.

Your additional costs are:
a) Registration/insurance.
b) Additional gas costs when driven over current car.
c) Additional pro-rated maintenance costs (for example, tires will be more expensive for a truck).
d) Additional potential repair costs
e) Lost opportunity cost on the $5k
f) Additional time to do things like clean/wash a 2nd car.

Your offset costs are:
a) Every less mile driven on the truck translates into a mile less on your current car
b) Every less mile driven on the truck saves on a mile of depreciation on your current car
c) Potentially a significant amount of time where you can delay having to replace your current car, in essence, deferring your future lost opportunity costs that will come with having to replace you current car sooner once it wears out. For example, 7 yrs from now, your current care is worn out/not worth replacing. You will now have to fork out another say $25K to $30K+ to get a new vehicle. But instead, you start driving the truck you bought for $5K as a daily driver and it last you another 7+ yrs. You just saved the 25K+ lost opportunity cost for the next 7+ years minus the extra fuel costs (so long as you can live with driving a now 12 yr old truck as I suppose there will be some other safety things available of significance).

But I'm different. I think 97% of responders will tell you not to have a 2nd car. I would say if your thinking longer term and you keep cars longer term then getting a truck at 85% off for $5K may actually be beneficial. If your more interested in getting an EV for personal reasons asap after your current car dies, then it's probably not worth it.

As last poster said, you could also just flip the truck possibly? But I suspect there must be some type of back story on why you could get the truck for 85% off and the other party just wouldn't sell it to someone else.

Edit: If you said you had a truck and were going to get a discounted sedan to drive as your commuter, then it is much easier to make the argument to get the 2nd car.
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firebirdparts
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Re: Do I keep 2 vehicles or 1 vehicle?

Post by firebirdparts »

I love cars so I will answer. I have many cars. I have a truck that I use only to haul stuff on, and it has 200,000 miles on it. It's very very capable. You might really need one occasionally. If you can afford it, then you certainly won't be a weirdo compared to everybody else.

It's not really possible to advise somebody about lifestyle expenses. None of them are investments. They're just expenses and you have to spend your money on whatever you like. I would certainly like to have a 5 year old truck with 35,000 miles on it instead of the one I have for $5000, but that's not likely to happen to me.
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JoeRetire
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Re: Do I keep 2 vehicles or 1 vehicle?

Post by JoeRetire »

Dynasty90 wrote: Thu Apr 01, 2021 9:57 pm I can afford to keep both vehicles, but does it make sense to have both?
No. It doesn't make any sense financially. Financially, you should immediately sell the truck or more than you paid for it.

But if you want to have two vehicles, for convenience or utility or some bragging rights or whatever, you get to decide how much that is worth to you.
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hudson
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Re: Do I keep 2 vehicles or 1 vehicle?

Post by hudson »

Dynasty90 wrote: Thu Apr 01, 2021 9:57 pm I am seeking outside perspective on a vehicle scenario I have been presented with.

I have the opportunity to purchase a 5 year old truck valued at 35k for 5k (approximately 85% off). The truck is well maintained and will last for many years. It has a gas guzzling motor and averages approximately 13-15 mpg. The fuel tank has a capacity of 36 gallons.

My current vehicle is valued at 9k and also will last for many years. It averages 30 mpg. The fuel tanks has a capacity of 17 gallons.

The new to me truck will be a daily driver. My commute to work is approximately 60 miles round trip, 5 days per week, 60% highway miles.

I can afford to keep both vehicles, but does it make sense to have both? I figure I would use my current vehicle as the primary commuter and the truck more of a handy to have vehicle. Paying to full the gas tank on the truck will make me cringe every time. Especially with the increasing gas prices. However, I know I can keep the truck for many years and still sell it for more than I paid for it even with the fuel and maintenance costs over the years.

Does it make mathematical and financial sense to keep both vehicles?
The truck would be a luxury purchase.
I buy a new truck every 20 years or so. I'm always going to have a truck. If I was in your shoes, I'd probably go for it.
Flyer24
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Re: Do I keep 2 vehicles or 1 vehicle?

Post by Flyer24 »

I have a car that I use for commuting to work. It is paid off and I will drive it as long as possible. I also have a newer truck that is my normal vehicle. I wouldn’t hesitate for a second at buying a 35K truck for only 5K. That is incredible. Worse case is that you sell it down the road if you decide to only keep one car. Then, you have made a great profit.

You could also consider buying the truck then reselling to purchase a truck that is more economical in gas.
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F150HD
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Re: Do I keep 2 vehicles or 1 vehicle?

Post by F150HD »

Dynasty90 wrote: Thu Apr 01, 2021 9:57 pm The new to me truck will be a daily driver. My commute to work is approximately 60 miles round trip, 5 days per week, 60% highway miles.

I figure I would use my current vehicle as the primary commuter and the truck more of a handy to have vehicle.
these contradict? may wanna tweak this.

You don't state where you live (?) in the snow belt, a 4WD truck is gold. I'd buy it for $5k, though I'd commute in the little car.

If the truck is in that good of shape you will always be able to sell/recoup, someone may want a plow truck or work truck or to tow a camper (at least in my region)
Last edited by F150HD on Fri Apr 02, 2021 8:02 am, edited 1 time in total.
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FOGU
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Re: Do I keep 2 vehicles or 1 vehicle?

Post by FOGU »

Yesterday I saw dog food on sale for a steep discount. But I don't have a dog. So I don't need or want dog food. Therefore, even though the dog food was available at a great price, I didn't buy it.

Do you need the new truck? Do you want it? If yes then buy it. That is a great deal. And $5k is probably not even a rounding error in your financials. If in a year you decide it is a pain to have two vehicles then sell the truck for a tidy profit.
Last edited by FOGU on Fri Apr 02, 2021 8:34 am, edited 1 time in total.
Onlineid3089
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Re: Do I keep 2 vehicles or 1 vehicle?

Post by Onlineid3089 »

I'd buy it as the rarely driven 2nd vehicle. In my family having an extra vehicle sitting in the yard was the norm. We did always drive older vehicles and would do most of our own work if something needed repairs so this gave us plenty of time to deal with anything that may come up. I.e if a u joint went out in the fall we could wait until after harvest was done to deal with it.

That may not be relevant to your situation. If it isn't it probably doesn't make sense to keep two.
humblecoder
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Re: Do I keep 2 vehicles or 1 vehicle?

Post by humblecoder »

Others have pointed out the contradiction in the original post so I won't pile on.

Here would be my preferred option:
1. Continue to commute with the current car that has a better MPG
2. Flip the truck (by "flip" I mean turn around and re-sell it... not literally flip it over :D)
3. If you need a truck for hauling the occasional large item, I would rent a vehicle for the day

This works for me since I don't have a lot of times where I need to haul a large item (a couple of times a year at most). If you need to haul large items very frequently, then maybe it is worthwhile to have a truck at the ready.

That said, if you want to own a truck because you just want to own one, then great. You only live once, after all. But don't try to justify it by saying that it is a good financial decision. It would be a luxury, which is fine. We all need our luxuries! :beer
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Re: Do I keep 2 vehicles or 1 vehicle?

Post by Oldaroo3 »

hudson wrote: Fri Apr 02, 2021 7:47 am
Dynasty90 wrote: Thu Apr 01, 2021 9:57 pm I am seeking outside perspective on a vehicle scenario I have been presented with.

I have the opportunity to purchase a 5 year old truck valued at 35k for 5k (approximately 85% off). The truck is well maintained and will last for many years. It has a gas guzzling motor and averages approximately 13-15 mpg. The fuel tank has a capacity of 36 gallons.

My current vehicle is valued at 9k and also will last for many years. It averages 30 mpg. The fuel tanks has a capacity of 17 gallons.

The new to me truck will be a daily driver. My commute to work is approximately 60 miles round trip, 5 days per week, 60% highway miles.

I can afford to keep both vehicles, but does it make sense to have both? I figure I would use my current vehicle as the primary commuter and the truck more of a handy to have vehicle. Paying to full the gas tank on the truck will make me cringe every time. Especially with the increasing gas prices. However, I know I can keep the truck for many years and still sell it for more than I paid for it even with the fuel and maintenance costs over the years.

Does it make mathematical and financial sense to keep both vehicles?
The truck would be a luxury purchase.
I buy a new truck every 20 years or so. I'm always going to have a truck. If I was in your shoes, I'd probably go for it.

+1 I could have written this response. Could not agree more.
wander
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Re: Do I keep 2 vehicles or 1 vehicle?

Post by wander »

Op, it sounds like you don't really need a truck other than just feel handy to have one. It doesn't make sense to buy one at all unless you buy and turn around sell it for profit.
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MortgageOnBlack
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Re: Do I keep 2 vehicles or 1 vehicle?

Post by MortgageOnBlack »

from my experience and current setup, nothing beats having a daily commuter (good gas mileage) and a nicer weekend vehicle (not so good gas mileage).
I drive my Honda for solo trips and enjoy my SUV on the weekends with my fiancee and our dog (also 4x4 which is helpful with bad weather). To me, the 15/16 MPG is well worth it doing that.

Both of my vehicles are used and sometimes need to be down a day or 2 for a repair. Not that big of a deal with 2 vehicles.

We plan on purchasing a brand new 4runner that we can keep 20+ years (probably closer to 30!) in the next few years. A big expense, but we love driving SUVs. Saving every single cent in life and trying to be "perfect" with finances is not that important to us; we do well enough.

Enjoy the discount and keep the truck (only if you have the desire to own a truck).
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Watty
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Re: Do I keep 2 vehicles or 1 vehicle?

Post by Watty »

Dynasty90 wrote: Thu Apr 01, 2021 9:57 pm My current vehicle is valued at 9k....
By the price I would guess that your car is old enough that it may not have a lot of the new advanced safety features or maybe not even ESC which is a very good feature to have. Around 2012 a new crash test was introduced that a lot cars did not do well in so a lot of manufactures improved their safety designs for that type of crash.

If it would be OK with the person giving you the truck it might make sense to sell both of them and then buy a safer vehicle that would be more reasonable for commuting in. Of course you could bypass a lot of the paperwork and they could just sell the truck and give you the $30K,

Dynasty90 wrote: Thu Apr 01, 2021 9:57 pm The new to me truck will be a daily driver. My commute to work is approximately 60 miles round trip, 5 days per week, 60% highway miles.
.....

I figure I would use my current vehicle as the primary commuter and the truck more of a handy to have vehicle.
You post is not clear, if you are commuting in your current vehicle then that would be your daily driver.
Dynasty90 wrote: Thu Apr 01, 2021 9:57 pm I have the opportunity to purchase a 5 year old truck valued at 35k for 5k (approximately 85% off).
Just fyi, the seller may need to fill out the gift forms unless there is something going on like there are couples involved where the $15K limit would be doubled. Usually this does not mean anything other than an additional form to fill out until the giver dies and their estate taxes are calculated.

I would guess that is how the $30K discount was calculated so you may already know about that.
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Re: Do I keep 2 vehicles or 1 vehicle?

Post by dink2win »

I agree with everyone else. If you are single, buy the truck for 5k and sell it for 35k and invest the difference. If you need a truck you can rent it. You'll save more money by not having to pay insurance and registration and maintenance plus the gains from the investments. Having truck also causes all sorts of friends and family to come out of the woodwork and ask to borrow your truck.

If you have a spouse or children you live with that also drive, then it might be a good chance to pick up a second car for cheap.
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quantAndHold
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Re: Do I keep 2 vehicles or 1 vehicle?

Post by quantAndHold »

Why is someone selling you a truck worth $35k for $5k? Is this a family member or something?

Assuming the truck really is worth $35k...

Do you actually need a truck? Often enough that it makes sense to own rather than rent or borrow?

It doesn’t make sense to use a gas guzzler for the daily commute when you have a car that gets much better mileage.

If this were me and I actually needed a truck and had a place to park it, I’d get it, but I wouldn’t commute in it.

If this were me and I didn’t need a truck, I’d buy it and flip it.
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Re: Do I keep 2 vehicles or 1 vehicle?

Post by inbox788 »

Dynasty90 wrote: Thu Apr 01, 2021 9:57 pm I have the opportunity to purchase a 5 year old truck valued at 35k for 5k (approximately 85% off).
I'd buy 10 of them!

Why doesn't the owner sell the truck and give you the cash. Or you can sell the truck for the cash? Clearly you don't want a $35k truck with all the other downsides you've mentioned.

Depreciation on the truck isn't worth the use you might get out of it.
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Re: Do I keep 2 vehicles or 1 vehicle?

Post by Doc7 »

My budget of 15K for a new hunting truck will get me into like a 2006 tundra next year. If you live anywhere near Virginia, give me a shout and I’ll give you an instant 50% return on your truck offer.
inbox788
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Re: Do I keep 2 vehicles or 1 vehicle?

Post by inbox788 »

Doc7 wrote: Fri Apr 02, 2021 1:14 pm My budget of 15K for a new hunting truck will get me into like a 2006 tundra next year. If you live anywhere near Virginia, give me a shout and I’ll give you an instant 50% return on your truck offer.
It's probably more like a 2016 Tundra. OP wants to sell it in 10 years for $15k and thinks he's driving a free truck and still making $10k. He's just ignoring that the's spending $20k depreciation in those 10 years. Much more than the full tanks of gas he's complaining about.

Deals like these don't exist, except on craigslist (scams).
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Re: Do I keep 2 vehicles or 1 vehicle?

Post by tashnewbie »

Why is someone selling you a $35k vehicle for $5k?
tibbitts
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Re: Do I keep 2 vehicles or 1 vehicle?

Post by tibbitts »

The OP is leaving out important details, like whether there is room to store the truck, whether there is a likely use for the truck, why the huge discount, etc. Someone considering buying a truck anyway should probably jump at it if it was the right type of truck (I'm guessing this is a larger than 1/2 ton based on the mpg.)
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Re: Do I keep 2 vehicles or 1 vehicle?

Post by Fat Tails »

Does it make financial sense? No. If your retirement savings are in track, sure, go ahead. I wouldn’t recommend it as a daily driver though due to the fuel costs,
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Re: Do I keep 2 vehicles or 1 vehicle?

Post by Metsfan91 »

Dynasty90 wrote: Thu Apr 01, 2021 9:57 pm I am seeking outside perspective on a vehicle scenario I have been presented with.

I have the opportunity to purchase a 5 year old truck valued at 35k for 5k (approximately 85% off). The truck is well maintained and will last for many years. It has a gas guzzling motor and averages approximately 13-15 mpg. The fuel tank has a capacity of 36 gallons.

My current vehicle is valued at 9k and also will last for many years. It averages 30 mpg. The fuel tanks has a capacity of 17 gallons.

The new to me truck will be a daily driver. My commute to work is approximately 60 miles round trip, 5 days per week, 60% highway miles.

I can afford to keep both vehicles, but does it make sense to have both? I figure I would use my current vehicle as the primary commuter and the truck more of a handy to have vehicle. Paying to full the gas tank on the truck will make me cringe every time. Especially with the increasing gas prices. However, I know I can keep the truck for many years and still sell it for more than I paid for it even with the fuel and maintenance costs over the years.

Does it make mathematical and financial sense to keep both vehicles?
Yes. It makes sense. I'd do it. I believe you should be able to sell the 5 year old truck for more than what you are paying for. So, it is a great deal. Get it. Enjoy it. Live a little... You'll always have the option to sell either one later.
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Metsfan91
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Re: Do I keep 2 vehicles or 1 vehicle?

Post by Metsfan91 »

tashnewbie wrote: Fri Apr 02, 2021 7:34 pm Why is someone selling you a $35k vehicle for $5k?
Seller could be a really good friend or family member.
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Re: Do I keep 2 vehicles or 1 vehicle?

Post by Dude2 »

To me it is worth something to have a "backup". Having a truck, in general, even if rarely used, especially if bought at a discount, is an amazing tool. Having to rent a truck when needed is far costlier. One can probably put the truck on the insurance as being driven 1 mile a week or something to get the cost down (assuming that's the use-case).
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Re: Do I keep 2 vehicles or 1 vehicle?

Post by Trader Joe »

Dynasty90 wrote: Thu Apr 01, 2021 9:57 pm I am seeking outside perspective on a vehicle scenario I have been presented with.

I have the opportunity to purchase a 5 year old truck valued at 35k for 5k (approximately 85% off). The truck is well maintained and will last for many years. It has a gas guzzling motor and averages approximately 13-15 mpg. The fuel tank has a capacity of 36 gallons.

My current vehicle is valued at 9k and also will last for many years. It averages 30 mpg. The fuel tanks has a capacity of 17 gallons.

The new to me truck will be a daily driver. My commute to work is approximately 60 miles round trip, 5 days per week, 60% highway miles.

I can afford to keep both vehicles, but does it make sense to have both? I figure I would use my current vehicle as the primary commuter and the truck more of a handy to have vehicle. Paying to full the gas tank on the truck will make me cringe every time. Especially with the increasing gas prices. However, I know I can keep the truck for many years and still sell it for more than I paid for it even with the fuel and maintenance costs over the years.

Does it make mathematical and financial sense to keep both vehicles?
I would buy the truck and enjoy it. Sounds like a great deal.
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Re: Do I keep 2 vehicles or 1 vehicle?

Post by JackoC »

Metsfan91 wrote: Fri Apr 02, 2021 11:34 pm
tashnewbie wrote: Fri Apr 02, 2021 7:34 pm Why is someone selling you a $35k vehicle for $5k?
Seller could be a really good friend or family member.
Lots of threads are chuckle generators for somebody laying out an odd scenario and not answering the obvious question it poses. In this case, who is selling a car that far off market and why? In fact the only reasons to actually not accept a $35k car for $5k would depend on that. Obviously for example if there's any doubt the seller owns the truck. Or, the person is not of sound mind. Or, you don't want the vehicle but can't flip it because it would offend the person basically giving it to you and you care (if I already decided to give a person $30k by selling them a $35k truck for $5k I wouldn't care if they sold it to realize that cash, other people might).

Assuming you are legally, ethically, relationship-wise free to accept the truck, and sell it if you choose, then you'd obviously accept that deal and the question is just whether to resell the truck, which depends on what you can get vs. its utility to you and ongoing cost of ownership (not including the purchase price). What you paid for it is not actually relevant under that assumption.

I also note that per theoretical forum standard of 100% compliance with everything, the net profit of flipping assuming those prices would be $30k*(1-ordinary income rate), the $30k a short term capital gain (a loss on selling a personal use car is not deductible, but in the much less common case of selling at a gain it's taxable).
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