Yes, I know that the thread title invites some interesting responses, but please refrain.
Could someone explain how an "in 'n out" works? A car salesman tried to explain this to me, but didn't do a very good job! Somehow it involves arranging to purchase a trade-in through a dealer in advance of the trade. My understanding is that there can be some saving on taxes.
My sister wants to get rid of her Toyota Tacoma and buy an Audi Quattro for $38000. She'll get $15000 on trade for the truck and pay taxes on the difference between the two vehicles, effectively increasing the value of her trade to $17125 due to tax savings realized through the trade-in ($15000 x 14.5% = $2175). She'd have to sell her truck for $17125 to match the trade (ie. if I wanted to purchase the truck, I'd pay her $17125 and then pay $1284 in tax for a total of $18409.
The way I understand it, an "in 'n out" could save some money here. Please explain.