I have a 2008 Altima with 118k miles. They have a 2010 Sentra with 96k. They will be trading it in sometime this year. To help me out, Mom suggested that we sell our cars to each other for $1 and I keep the Sentra and they trade in the Altima. My first reaction was to definitely to do that because it has 20k fewer miles. It is in perfect shape and I’ve driven it and I like it, but I do prefer the larger size of the Altima, especially since I am now driving for Lyft.
But both cars, if well cared for, could go for 200k. Does 20k miles make that much of a difference? The Sentra has not had any major repairs done, my Altima has had the catalytic converter, oxygen sensor and a part of the exhaust (can’t rememmber exactly which part) replaced in the past 2-3 years. I think that is an advantage, not likely those parts will break again at least in the near future
They have taken the car in every year for a “check-up”, I have not been so diligent, I only took it in every 2 years in Jersey for an inspection. But now I live in Virginia and inspections are required every year, and when I take it in next year I will have them follow the usual recommended maintenance recommended by Nissan. I do know I will need new brake pads then. The wear on the tires are about the same on both cars.
Now I am not concerned with precise numbers, I don’t care, if I keep the Altima, if I spend a few hundred more dollars every now and then. I am just concerned with long term longevity. I am only driving for Lyft part time, would probably drive 1200 miles a month. But until now, I have been averaging about 300 a month total ( I have become a homebody). So the overall mileage I will be putting on whatever car I drive would be comparably to what most people normally drive.
I quickly googled the two cars for “model,year, failures”.
Stuff popped up. First, consider the recalls. These may be fixed free of charge. If fixed, they can make a big difference in future reliability. Look into the most flagged failures. Do they relate specifically to these two vehicles?
But. You have had some major cost items replaced. Catalytic convertor? I hope that wasn’t replaced before O2 sensor was found to be bad. How do they find a convertor is bad?
Look into any major problems with the 2010 Sentra versus yours. I would probably do the swap.
Are your parents financially well off enough, that if the car fails bad. You can guilt them to make it even or even better?
CC was found bad when I went for inspection in NJ, I had just recently got the check engine warning (comes in 2nd place in list of problems at link below). Later I got it again, mechanic said it could be either the oxygen sensor or small cracks in the exhaust pipe and that you could not really be sure which one. The exhaust had been patched several times before, and this mechanic was not an expert on that. I went for the less expensive repair which was the sensor. It did need replacement, so said the computer, but it did not make the CE light go away. When I got the car inspected about 6 months ago, found that it was only one part of the exhaust that needed replacing, cost about $150.
I now have a new mechanic, recommended by a friend here who knows a lot about cars.
I just made a decision. For a long time I’ve had a minor dent above the back left wheel, and some minor scratches on the passenger side door, and the plastic or metal piece that goes around the passenger side window is badly faded. Not worth it to me to spend money on, but I just recently noticed the rubber that goes around the wheel well is coming loose, and the front bumper on the passenger side pops out from time to time. None of this is to be unexpected I guess on a 13 year old car, but who knows what I might find if I look under the car. Mom’s car looks brand new. Would certainly be worth more about 4 years from now when I trade in for a brand new used car.
Is it certain that you or your parents won’t be taxed?
A $1 sale price could be flagged by the tax authorities. Are the cars both registered in the same state? If not, that could further complicate the tax issue. Finally, would your parents receive the same trade-in value for either car? That, by the way, perhaps warrants its own thread. I never understood the economics of “bring any car in, as long as it runs, for the same trade-in value”.
Good point. We can just give the cars to each other. They may not get the same trade in value, but it’s not an issue for them, and I’m sure the difference would not be more than $1000. As I said, though not rich by any means, they have more money than they need.
My kid had a Sentra first car after college. He never had a good thing to say about that car. Considered it a dog - especially when trying to merge onto highways (his daily commute). I had never heard similar comments from Altima owners. But likely his expectations in how a car drives differs from yours.
It’s probably not worth it to sell the car for $1 rather than gifting it - but the link in that article
Unfortunately, this tax usually applies to the car’s fair market value rather than the $1 you charged her.
goes to a NYS DMV page where it says that if the sale is for below fair market value and the seller’s portion of the form is not completed and signed , the DMV will collect tax on the fair market value of the vehicle as determined by DMV. And even that is only if the sale/gift is to someone other than a spouse, parent, child, stepparent, or stepchild.
Other states might be different - but I doubt they are so different that selling the car for $1 is treated differently than giving it to the same person as a gift.
But I drove a 2016* Sentra rental car last summer, and I don’t have anything good to say about it, either. The car seemed noticeably sluggish. Like, I’d step on the gas, the engine would make some noise, and gradually it would start to generate some forward motion. I blame the CVT (continuously variable transmission).
I also had a 2020 Altima until earlier this week while my car was in the shop being repaired after an accident. That car I actually kind of liked. Despite also having a four cylinder and a CVT, it felt reasonably powerful and accelerated better than the Sentra. And it had more features. The larger size didn’t really matter to me, but that might be important if you’re regularly going to have passengers in the back seat. I actually would have preferred something smaller just to more easily fit in my garage. I found myself always having to double check that I’d pulled forward far enough for the trunk to clear the garage door, something I’ve never had to do with smaller cars.
*Surprisingly old for a rental, but with the vehicle shortage rental companies have been buying older cars at auction.
Yeah, the CVT. Do either of the cars have a CVT transmission? If so, that is probably not the car you want. They are expensive and prone to catastrophic failure if not maintained properly.
Making it even worse, the manufacturers tend to recommend unrealistic maintenance schedules. They may say to change the fluid and filter every 100,000 miles, but it really needs to be done every 50,000.
So, if your Altima has a CVT that hasn’t been touched in 118,000 miles, then run away from it as fast as you can.
And as for the $1 sale, as you discovered, there’s no point in playing those games. Just sign the titles over, and you’ll be taxed (or not) based on the laws of your state. When my Dad gave me his truck, I only had to pay to register it, no taxes or anything. If your parents pan to trade in your car, then they probably don’t even need to bother registering it.
Just out of curiosity, I had understood that driving for one of these companies (Lyft, Uber) required you to have a car meeting certain requirements, age being one?
Everything I’ve always heard is that it makes it easier to transfer the title if you sell your car for a small amount rather than actually gift it. I’d never even heard that it had anything to do with taxes.
I’ve never heard that. I’ve transferred cars in two states (CA and OR), and in Oregon the paperwork is exactly the same, while in CA you have to file an additional form if you want the recipient to not be taxed on a gift transfer. Which I guess is marginally harder, but if you try to sell a car for $1 when it’s clearly worth more than that you risk incurring the wrath of the FTB, which is probably not worth it.
The slight difference in milage does not matter. Which car has been maintained better, is in better condition, etc.? Oil changes matter, they really do.
