3.0L Trade In Credit

[Dan_Clements]

@TommyGun: You are right on if the dealer has the vehicle you want. Unfortunately, not my case.

In Washington State the buy-back portion of the settlement would be exempt from state sales tax. The "Additional Restitution" would not, nor would the Bosh settlement. A potential $2,800 savings for me.

 

[TommyGun]

@TommyGun: You are right on if the dealer has the vehicle you want. Unfortunately, not my case.

In Washington State the buy-back portion of the settlement would be exempt from state sales tax. The "Additional Restitution" would not, nor would the Bosh settlement. A potential $2,800 savings for me.

Keep in mind you can work with the dealer to get the car you want. They don't need to have it sitting on there their lot, they can get a used car from anywhere in the country (if you are going new, I would think that would be tough unless the dealer is owned by a conglomerate that also has a dealer of the brand you are looking for)

 

[Dan_Clements]

Received an email from VW this morning about scheduling the buy back appointment. Earliest date was July 5.

Picked up a new vehicle this past Friday, so timing works out well. Sad to no longer have a Touareg: great vehicle, but VW corporate is absolutely horrible.

 

[Dan_Clements]

Had my turn-in/buy-back appointment this morning. Fairly easy, but different process from 2.0 liter settlements.

Adjuster had to take four photos of vehicle (VIN, odometer, inside rear, driver's side). Had to sign mileage certification and power of attorney. She was having a few computer issues, so I had to help her out.

They did not ask for banking account or routing numbers. Chase is to send an email in the next couple of days with wire instructions.

Couple of interesting things. On the title transfer, the sale amount is listed as the VW vehicle purchase amount, not the full settlement amount. In my case, for example, the vehicle purchase price was $31,300, and the additional restitution amount was $11,334.

I am sure they did this to reduce the amount of sales tax they will pay on the purchase. In Washington State, this also means that, had I elected the trade-in offer rather than cash-out, the $31,300 would not be subject to State sales tax, the $11,334 would be.

Had an interesting discussion with the dealer's office staff. They indicated customers have had a lot more issues with the 3.0 liter settlement scheduling than the 2.0 appointments. If you are not computer literate, or do not have the software tools to turn jpg's into pdf's, then combine them into a single document, you have to either fax the information or mail it in.

According to the dealer, it appears like faxes and snail mail submittals are being lost or mis-filed. The VW help desk is apparently hanging up on callers. So they have an employee who is working with computer challenged customers and filing the forms electronically from the dealership.

Looks like I was the first 3.0 liter settlement in our area, and it went fairly painlessly.

 

[TommyGun]

Had my turn-in/buy-back appointment this morning. Fairly easy, but different process from 2.0 liter settlements.

Adjuster had to take four photos of vehicle (VIN, odometer, inside rear, driver's side). Had to sign mileage certification and power of attorney. She was having a few computer issues, so I had to help her out.

They did not ask for banking account or routing numbers. Chase is to send an email in the next couple of days with wire instructions.

Couple of interesting things. On the title transfer, the sale amount is listed as the VW vehicle purchase amount, not the full settlement amount. In my case, for example, the vehicle purchase price was $31,300, and the additional restitution amount was $11,334.

I am sure they did this to reduce the amount of sales tax they will pay on the purchase. In Washington State, this also means that, had I elected the trade-in offer rather than cash-out, the $31,300 would not be subject to State sales tax, the $11,334 would be.

Had an interesting discussion with the dealer's office staff. They indicated customers have had a lot more issues with the 3.0 liter settlement scheduling than the 2.0 appointments. If you are not computer literate, or do not have the software tools to turn jpg's into pdf's, then combine them into a single document, you have to either fax the information or mail it in.

According to the dealer, it appears like faxes and snail mail submittals are being lost or mis-filed. The VW help desk is apparently hanging up on callers. So they have an employee who is working with computer challenged customers and filing the forms electronically from the dealership.

Looks like I was the first 3.0 liter settlement in our area, and it went fairly painlessly.

Glad to hear your buyback went smoothly!

Your dealer's apportioning of the trade-in credit is incorrect; the settlement clearly states that the entire "Buyback amount", which is defined as the trade-in value portion plus the restitution portion, is what you get the trade-in credit on. .

I spoke to my local Audi dealer here in MN and they too thought only the trade-in value portion would be what was considered for sales tax savings, but the manager called around and found that the settlement is clear in it's spelling out of the "Buyback amount" for trade-in credit, not just the trade-in value.

Another anecdote, you can't complete the buyback on 1 car and use the sales-tax savings on 2 cars of equal combined value to the buyback vehicle (or, at least you can't do this in MN). I was hoping to turn one of my Q7's into a truck and a sedan and save the sales tax on both, but that's a no-go.

 

[TommyGun]

Another piece of info for anyone wanting to do the trade-in on their 3.0L: the car you get in exchange for the buyback-mobile will need to be delivered to you on the day of your turn-in appointment. The dealers I spoke with here in the Twin Cities have said that they will work with you on getting a car for you and storing it until your appointment, with the terms all worked out prior to turn-in day.

 

[Dan_Clements]

@ TommyGun: I think you are a bit confused, or perhaps I was not clear. The dealer can accept the full amount on a trade-in. No question.

However, the third party claims firm who is handling the buy-back is the individual who filled in the vehicle sale amount on the title transfer and odometer certification, not the dealer. As mentioned above, VW's purchase price for me was the 30+ grand, and did not include the $11,000 penalty. Again, I think the reason is to reduce VW's tax liability on the repurchase.

Dealer had no involvement in this part of the transaction: all handled by a TPA.

 

[Dup_Loop]

There is no third party claims firm, VW is administering directly and has oversight over the full process. Please don't attempt to present yourself as an expert in the area if you are not.

 

[DanB36]

Again, I think the reason is to reduce VW's tax liability on the repurchase.

VW has no tax liability on the buyback, just as a dealer doesn't pay sales tax on cars they take in trade.

 

[Dan_Clements]

2 Dup_Loop: sorry to disagree, but in my dealings a third party administrator was, in fact used. The TPA was hired by Volkswagon of America. The local dealers are separate corporations. Feel free to give her a call: Georgia Hanson, 360.618.3173. Not sure if VW is using the same firm across the US.

Not sure where you are coming from, but I am simply reporting on my dealings to try and help others.

E-mail from Chase was received this morning, and transfer is in the works.

 

[Dan_Clements]

Direct deposit received from Chase today, four days after vehicle turn in. We bank with Wells Fargo.

My understanding is that Bosch settlement will be much faster than 2.0 liter settlement. One of my neighbors settled 2.0 in January, received Bosch check in June. We will see.

 

[Michael A]

Does anyone know if I can easily switch my buyback to a trade in credit at my local VW dealer?

 

[DanB36]

I'd expect that any change to your desired remedy would require a call to the hotline.

 

[Michael A]

So I am seriously considering changing my buy back to a trade in credit to purchase a replacement vehicle however I have a question about the over payment amount.

My buyback amount is $47k and car I am looking to buy is $34k, VW dealer is telling me I sign the full $47k over to them and they will cut me a check for the difference/over payment.

Does this make sense or is this how it is done?

 

[DanB36]

I can't say for sure that this is how it's done, but it makes sense to me. If that car's a trade-in, it's a trade-in.

 

[TommyGun]

So I am seriously considering changing my buy back to a trade in credit to purchase a replacement vehicle however I have a question about the over payment amount.
My buyback amount is $47k and car I am looking to buy is $34k, VW dealer is telling me I sign the full $47k over to them and they will cut me a check for the difference/over payment.
Does this make sense or is this how it is done?

Yes, that is how it's being done. VW of America will pay your full buyback amount to your dealer, who then uses that amount as if you just traded in a car at that price. Upon selecting and buying your replacement car, the dealer then gives you the rest (if you are still owed anything) in a form of payment agreeable to both parties, which in 99% of cases would be a check, I assume.

 

[CleanDieselTD$]

I'm curious, has anyone successfully competed a trade-in on a non-VAG vehicle? Did they work with you to locate your desired car?

In my experience, every dealer I've spoken with has basically replied with either "you can only trade on a NEW Audi" (false), "we can't source a car for you" or "we just don't want to do it".

From speaking with a buyback rep I've gotten very familiar with over the past year, he told me that less than 5% of 3.0l buybacks he has processed elected the trade-in option, and that in every instance the dealer has been waiting weeks to get paid by VWGOA. That might explain their reticence

 

[drsven]

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From speaking with a buyback rep I've gotten very familiar with over the past year, he told me that less than 5% of 3.0l buybacks he has processed elected the trade-in option, and that in every instance the dealer has been waiting weeks to get paid by VWGOA. That might explain their reticence

Didn't the 3.0L Gen1 buybacks just begin last month?