My appointment is Monday the 17th. I can't seem to find an answer anywhere on the forum. I live in Colorado and we pay 7.5% tax rate on the purchase price of a new vehicle. My replacement vehicle is about $29,000. I'll get $22k and change for my Jetta with $16K and some change for the actual car value. Are we able to use our cars as a trade in to offset the tax liability? If not, my taxes will be $2,200!! Anyone have any experience with this?
Do we qualify as having a trade in? HELP
- Thread starter Cobrargc
- Start date
PacCoastFwy923
Veteran Member
- Joined
- Feb 21, 2008
- Location
- Oakland
- TDI
- 2015 Passat SE TDI 6-speed manual; 2006 mkV Jetta TDI / 5-speed / Pkg 2
I haven't seen anything from Colorado specifically, but some other states that allow this offset, and the FTC, regard the buyback as a legal settlement that differs from a trade-in, and therefore there is no offset. The FTC specifically says the buyback amount is sufficiently padded to make up for tax paid.
Yukon4Runner
Veteran Member
Only way you get the trade in tax credit is if you live in a state like Vermont that allows a tax credit on private car sales. Otherwise you are SOL. VW gets the benefit of only giving trade in price but not the tax credit. The states were more than happy to allow this as they are generating an additional half billion in car sales taxes.
Plenty of people objected to the court about this to no effect. If more people, like the OP, had tuned into this little screw you and formally objected we might have got somewhere. As it is, it's too late to do anything.
Plenty of people objected to the court about this to no effect. If more people, like the OP, had tuned into this little screw you and formally objected we might have got somewhere. As it is, it's too late to do anything.
Cobrargc,
The answer to your question is very much specific to the state where you're registering your new purchase. You might get better information in the regional forum where someone from your state might supply the relevant answer.
The answer to your question is very much specific to the state where you're registering your new purchase. You might get better information in the regional forum where someone from your state might supply the relevant answer.
Rico567
Top Post Dawg
This is all state-specific. Absent any forum contributors weighing in on Colorado specifically, the best thing to do is probably visit the state taxing authority's web site. That's what I did (I live in IL), and the Illinois Department of Revenue's page is very explicit, and settles the matter quite well. There are several scenarios where the tax may be waived (ex., an actual trade-in, which the buyback ain't), but there is no way they will allow a nickel on the VW buyback. And there's no reason why they should, really, since they have no direct involvement in Dieselgate.
I checked with the dmv before my buyback appt and they told me sure just bring in the paperwork. Well went in to license the new vehicle and they told me to pound sand. If in fact I did want the sales tax refunded it would absolutely have to come from the dealer as the DMV does not have the authority or ability to refund said sales tax. Which is probably correct as it would actually be a dept of revenue issue. However bottom line for me was that no they would not give me the credit even though previously said they would. While I did not go off on them I was certainly one unhappy camper.
I remember writing a check to cover taxes and plates for my new Jetta. It was $1,115 to the state of Iowa. I had no trade in with this vehicle. I now live in Colorado and expect to write a check for $3,000 or more. I've even went to the DMV begging for a ballpark estimate for taxes and plates. They said they couldn't help me. I have a vehicle in mind to buy and even supplied the price I will be paying along with the VIN number. Still no help from them. It kind of like buying a home before knowing what your mortgage payment will be. The sales tax portion is a straight forward 7.4%. I just don't know if I'm setting myself up for an annual registration cost of $300, $600 or even $900.
2015vwgolfdiesel
Top Post Dawg
GAD,
Okies get no break for a rebate, after WAG pays for the vw and we buy a replacement ~~ Full bore new car 1st year fees
But at least we pay a small-ish 2nd year registration fee ~~ $100(?)
Rico567
Top Post Dawg
People need to understand that unless your state has some fairly unusual language in its taxing statutes (like VT), this is not a trade-in, so there really can't be any expectation of the state waiving any of the tax.
DanB36
Veteran Member
Exactly. With a trade-in, you're selling one car to the dealer, and buying another car from that dealer at the same time. The manufacturer isn't involved in any way. With the buyback, you're selling a car to VWoA, and (perhaps) buying a car from a dealer. The fact that both transactions take place physically at the same dealership is meaningless, as is the fact that they happen at (about) the same time.
It doesn't hurt to ask, I'm sure, but it's going to be a pretty uncommon case where you get a sales tax benefit out of the buyback.
Tony45
Veteran Member
Agree, I’d be surprised if it actually works. When you turn-in a car at a VW dealer, the transaction is between you and VWoA, not the dealership. Matter of fact, some dealers refuse to let the VWoA embassador have a desk with the sales department to maintain physical separation.