Do you know how the sales tax offset works? Would the sales price of my car be offset by the trade-in amount or only by the positive equity?Assuming your leased SUV is a non tesla, if you have positive equity in it from the offer that tesla is giving to you, they would apply that to the new car purchase as a down payment (if you are getting a loan) or cap cost reduction (if you are leasing your new tesla).
Thats the default for them (and every other car dealership when you trade in a vehicle with equity on it, either positive or negative). It gets applied to your new vehicle, either negative equity or positive equity.
In Illinois you get the full trade-in amount as a reduction in the purchase price of the new vehicle for sales tax purposes. This actually changed January 1, 2022.Do you know how the sales tax offset works? Would the sales price of my car be offset by the trade-in amount or only by the positive equity?
Even if I owe money on the old car?In Illinois you get the full trade-in amount as a reduction in the purchase price of the new vehicle for sales tax purposes. This actually changed January 1, 2022.
I'm currently going through this process myself, trying with Tesla as well as Carmax (and maybe more options because of all of the difficulties I'm running into). What I'm finding out is what others are saying above. I'm dealing with Audi, which at least is supposedly still allowing third parties to buyout leases. However, if I call them I can get the lease buyout info (my buyout info) immediately via their automated system. However..., that is not the buyout that the third party gets - Audi, and a lot of other manufacturers now, are charging additional fees (sometimes thousands of dollars more) to a third party to buyout the lease. For Audi Financial, the third party calls an automated system and enters some info and waits for a faxed buyout packet to come through. Carmax has been waiting 4 days, Tesla has been waiting 3.5 days. Not sure if they will ever get one. They say this is all because they want the inventory back themselves. But then when I contact Audi dealers and tell them I'm looking just to sell outright vs trade in for a new vehicle they are selling, they don't get back to me either. I have positive equity in my lease, I have half the miles on it that it should have. Carmax would love to take the car but can't get the info from Audi to buy it from me. It's almost impossible at the moment to get rid of it, even to trade it in. Hopefully it changes soon as my MYP is on it's way to the delivery center now.The payoff amount on my current leased SUV is less than what Tesla is offering in trade for it. If I trade-in this SUV will Tesla simply give me the difference? Or do I need to pay it off first? Or will Tesla apply the difference to the price of the new MYP?
Thanks so much. You are exactly in our situation. We are buying a MYP and trading in a leased Audi Q5. We also have positive equity. I had no idea Audi charged dealers or third parties more. Given the above, it seems we are best served to just pay off the lease and get the title and then trade in to Tesla or sell to CarmaxI'm currently going through this process myself, trying with Tesla as well as Carmax (and maybe more options because of all of the difficulties I'm running into). What I'm finding out is what others are saying above. I'm dealing with Audi, which at least is supposedly still allowing third parties to buyout leases. However, if I call them I can get the lease buyout info (my buyout info) immediately via their automated system. However..., that is not the buyout that the third party gets - Audi, and a lot of other manufacturers now, are charging additional fees (sometimes thousands of dollars more) to a third party to buyout the lease. For Audi Financial, the third party calls an automated system and enters some info and waits for a faxed buyout packet to come through. Carmax has been waiting 4 days, Tesla has been waiting 3.5 days. Not sure if they will ever get one. They say this is all because they want the inventory back themselves. But then when I contact Audi dealers and tell them I'm looking just to sell outright vs trade in for a new vehicle they are selling, they don't get back to me either. I have positive equity in my lease, I have half the miles on it that it should have. Carmax would love to take the car but can't get the info from Audi to buy it from me. It's almost impossible at the moment to get rid of it, even to trade it in. Hopefully it changes soon as my MYP is on it's way to the delivery center now.
I had no idea either until I went to Carmax. And I still don't understand why it takes so long to respond even with he policy. But yes if you're in a position to just buy it out yourself that will save you time, money, and headaches for sure.Thanks so much. You are exactly in our situation. We are buying a MYP and trading in a leased Audi Q5. We also have positive equity. I had no idea Audi charged dealers or third parties more. Given the above, it seems we are best served to just pay off the lease and get the title and then trade in to Tesla or sell to Carmax
Would I have to pay sales tax on the residual if I sell to Carmax? They appear to be OK with buying out an Audi financed lease.Most major dealers are putting hurdles in there to lease buy outs from other dealer brands. They cant stop you from buying it (unless its a tesla model 3 or Y that you have leased, which does not have a owner buyout provision), but they can make it so that third party dealers either cant buy it, or make it so difficult they dont want to deal with it.
The "easiest" is to buy it yourself and then sell it, but then you have to deal with whatever tax implications that come about in your state from that. Thats what I did in Dec of 2021, I bought our X3 off lease (we had quite a bit of positive equity in it), and then I sold it in March of this year.
Takes longer that way, and you have to deal with taxes etc, but then you own the car so can do whatever you want to with it.
Would I have to pay sales tax on the residual if I sell to Carmax? They appear to be OK with buying out an Audi financed lease.
Carmax in my state had a list of companies they could no longer buy back from. Audi they still can. For my situation they have been waiting on Audi Financial since Wednesday for the dealer buyback info. Not sure if this is just my luck or they are reacting this slowly for everyone now. But both sides say it can happen - Audi is just not responding yet to allow it to complete. Hopefully your situation is not similar. Very frustrating.Would I have to pay sales tax on the residual if I sell to Carmax? They appear to be OK with buying out an Audi financed lease.
Just wanted to follow up with you on my experience with Carmax. I finally received the dealer buyout from Audi Financial - they added an additional $10k to my buyout for the one they sent to Carmax, in essence raising my buyout by 30%. Putting me underwater significantly. I then called the Audi dealer that I go to for all of my service and they are taking it back break-even. I know if I were to sell it on my own, or buy it out myself I could potentially make a little bit, but I'm out of time at this point and I am not in a position to buy it out on my own especially with the time to get the title etc. Just a heads up that Audi Financial is not our friend at the moment so you may want to start pursuing this other option in parallel to save some time. Tesla came in almost $7k below Carmax's offer as an FYI for a trade option so that was out from the start (they received the same buyout number that Carmax did).Would I have to pay sales tax on the residual if I sell to Carmax? They appear to be OK with buying out an Audi financed lease.
Thanks for the update. Apparently, although Carmax buys out Audi leases, it appears Audi is not playing nice. So my options are:Just wanted to follow up with you on my experience with Carmax. I finally received the dealer buyout from Audi Financial - they added an additional $10k to my buyout for the one they sent to Carmax, in essence raising my buyout by 30%. Putting me underwater significantly. I then called the Audi dealer that I go to for all of my service and they are taking it back break-even. I know if I were to sell it on my own, or buy it out myself I could potentially make a little bit, but I'm out of time at this point and I am not in a position to buy it out on my own especially with the time to get the title etc. Just a heads up that Audi Financial is not our friend at the moment so you may want to start pursuing this other option in parallel to save some time. Tesla came in almost $7k below Carmax's offer as an FYI for a trade option so that was out from the start (they received the same buyout number that Carmax did).