If a dealer offers you $10,000 for your car as a trade-in, saving you 7% sales tax on your new car, what must you get for selling your car to a third party?

To determine what you should receive from selling your car to a third party, you need to consider both the offer from the dealer and the impact of the sales tax savings when trading in your vehicle.

When you trade your car in for $10,000, you save 7% on the sales tax for your new car. The savings can be calculated by multiplying $10,000 (the trade-in value) by the sales tax rate of 7%. This results in savings of $700:

$10,000 * 0.07 = $700.

This means that by trading in your car, you effectively reduce the cost of your new vehicle by $700. Therefore, to make selling your car to a third party financially equivalent, you need to receive enough money from that sale to cover the value of the dealer's offer plus the equivalent tax savings, which totals $10,000 + $700 = $10,700.

Thus, to benefit financially as you would from the dealer trade-in, selling your car to a third party should yield you at least $10,700. This explains why the answer is $10,700.