sales tax

will we pay 100% sales tax on purchase?


  • Total voters
    23
  • Poll closed .

ken carcich

New member
Joined
Sep 21, 2016
Location
wyoming,usa
TDI
2013jetta sportwagen
when I do the buy-back on one vw contract-- then purchase a car at the same dealer, on another contract. WillI get tradein credit for sales tax savings?
 

ZippyNH

Veteran Member
Joined
Apr 22, 2015
Location
Southern NH
TDI
2015 JETTA TDI SE
It's NOT a trade...
You are given a check or electronic funds transfer....
So since you TOUCH the $$ in some manner, it is NOT a trade....
You are by DEFINITION of the buyback, SELLING YOU CAR BACK TO VW.
Not trading it....
 

BuyMeBackSoon

Veteran Member
Joined
Jun 3, 2016
Location
Or
TDI
2013 golf
I guarantee that I wont pay sales tax in Oregon.

Agree with others, although I bet some states will give you a break on the tax or a refund.
 

HBarlow

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Joined
Nov 3, 2012
Location
Crosby County, TX
TDI
2009 Jetta Sportwagen, 2016 Audi Q5 TDI
when I do the buy-back on one vw contract-- then purchase a car at the same dealer, on another contract. WillI get tradein credit for sales tax savings?
It depends on the tax regulations of your state but my guess is it will be considered a trade if the buy back and purchase of a replacement are done within a limited period such as a day or two.

You should pay sales tax only on the difference amount.

Ask your state tax department or your local registration and tax collecting office for an interpretation.
 

bubbagumpshrimp

Veteran Member
Joined
Jul 12, 2013
Location
Virginia
TDI
'13 Jetta TDI
It shouldn't matter if the transactions are five minutes apart or five months apart. You would be conducting two completely separate and distinct transactions. You would not be conducting a trade-in, so the answer should be no (for a credit).
 
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South Coast Guy

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Nov 17, 2010
Location
Mattapoisett, MA
TDI
2009 Jetta TDI wagon
I have written to my local state Representative asking for assistance on this matter. I expect every resident of Massachusetts who chooses the buyout will be buying another car. Why should we have to pay additional sales tax that other drivers don't have to pay?
 

bubbagumpshrimp

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Jul 12, 2013
Location
Virginia
TDI
'13 Jetta TDI
I have written to my local state Representative asking for assistance on this matter. I expect every resident of Massachusetts who chooses the buyout will be buying another car. Why should we have to pay additional sales tax that other drivers don't have to pay?
Any other person that buys a new car at that time would be paying sales tax. Why would you be excluded from having to pay it?
 

ZippyNH

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Joined
Apr 22, 2015
Location
Southern NH
TDI
2015 JETTA TDI SE
I have written to my local state Representative asking for assistance on this matter. I expect every resident of Massachusetts who chooses the buyout will be buying another car. Why should we have to pay additional sales tax that other drivers don't have to pay?
You are going to open up a huge can of worms....
Not all the $$ you get paid for is for the car....it's for the car and extra "settlement" amount...
If the state gets involved, it will only get more complex.....
Think of this deal being like selling your car on Craigslist....then buying a car...taxes are charged based on the sale price of the bought car....you can save a trivial amount based on the reduced price paid due to a tradein...
If you don't like it...MOVE. just don't come to NH....too many mass folks are already here!!
 

bubbagumpshrimp

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Jul 12, 2013
Location
Virginia
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'13 Jetta TDI
You are going to open up a huge can of worms....
Not all the $$ you get paid for is for the car....it's for the car and extra "settlement" amount...
If the state gets involved, it will only get more complex.....
Think of this deal being like selling your car on Craigslist....then buying a car...taxes are charged based on the sale price of the bought car....you can save a trivial amount based on the reduced price paid due to a tradein...
If you don't like it...MOVE. just don't come to NH....too many mass folks are already here!!
Haha. Nice. I've got folks in NH. Scooting up to visit them soon.
 

ZippyNH

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Apr 22, 2015
Location
Southern NH
TDI
2015 JETTA TDI SE
Haha. Nice. I've got folks in NH. Scooting up to visit them soon.
While you are here, feel free to stop at one if our newly remodeled highway rest stops...now with larger and improved liquor stores!!
Hey...it'd unconventional, but if selling booze to out of staters keeps me from having a SALES TAX AND AN INCOME TAX, why not?!

Now back to the op...
If the buy-back was MANDATORY, then you should get a credit if some sorts...but since the buyback is an optional procedure...you can keep the car and do NOTHING, get a fix, or do a buyback, imo it is unlikely that much will be done...coupled with the fact the $$ was paid in a different calendar year, and several years of use have taken place....and much of the $$ is "compensation".....
 
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bubbagumpshrimp

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Virginia
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'13 Jetta TDI
While you are here, feel free to stop at one if our newly remodeled highway rest stops...now with larger and improved liquor stores!!
Hey...it'd unconventional, but if selling booze to out of staters keeps me from having a SALES TAX AND AN INCOME TAX, why not?!
Yup. I don't drink all that often (I get months out of a handle of booze). I tend to wait until a trip up your way to stock up. I went a bit overboard my last trip up, so I think I'm good to go this time.:D
 

kjclow

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Apr 26, 2003
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Charlotte, NC
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2010 JSW TDI silver and black. 2017 Ram Ecodiesel dark red with brown and beige interior.
In NC, the sales tax is paid on the remainder of the purchase after subtracting the trade in and other discounts. Since there is no trade, I will be on the hook for the full and final purchase price.
 

Ol'Rattler

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Jul 3, 2007
Location
PNA
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2006 BRM Jetta
Seriously, most folks will get severely hosed on the buy back, so who really cares about sales tax? A very insignificant point when you consider how bogus the buyback program will be. No, the buyback program will not make you whole again, it will just be the minimum VW has to do to stay out of jail.
 

MayorDJQ

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Location
Williamstown, Mass
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'10 Golf 2dr 6m, sold.
This may depend on the state. Back in '08 I totalled my '02. My insurance company cut me a check for the value of the car plus sales tax, since they were technically buying my car. When i bought a replacement, I paid sales tax on the full value of the purchase. Can the tax paid on the wreck be thought of as a credit? Depends on your attitude I suppose.
 
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Ol'Rattler

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Location
PNA
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2006 BRM Jetta
Totaling your 2009 through 2014 might be a better option. It is guaranteed that VW will pay the least possible buyout for there lame ass buyout program.

Ah no. I do not do lame ass surveys. Sorry.
 
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BuyMeBackSoon

Veteran Member
Joined
Jun 3, 2016
Location
Or
TDI
2013 golf
Totaling your 2009 through 2014 might be a better option. It is guaranteed that VW will pay the least possible buyout for there lame ass buyout program.

Ah no. I do not do lame ass surveys. Sorry.
You don't show that you have a car in this buyout, so why do you keep criticizing it? And you don't like the survey so why even post on this thread?
 

HBarlow

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Joined
Nov 3, 2012
Location
Crosby County, TX
TDI
2009 Jetta Sportwagen, 2016 Audi Q5 TDI
Ordinary folks in Texas have long used a completely legitimate practice called "in and out" to save sales tax when selling a car in a private separate transaction and buying a replacement.

I've done it myself.

It works like this: You and I agree that you will buy my current car (boat, motorcycle, rv) for $XXXX.00. I arrange to buy a replacement from a local franchised dealer and also arrange with the dealer to do an in and out transfer of my current car.

I sign the title of my current car over and hand it to the dealership when I purchase my new car. I pay for the new car and pay sales tax on the difference. You pay the agreed price for my "trade" to the dealer and pay sales tax on your purchase price.

The dealership made no money on the trade or perhaps we all agreed that the dealer could mark the price up by a couple hundred bucks for their trouble.

Everyone got what they wanted. Everyone is happy.

My Dodge dealer did an in and out transaction for me several years ago when I bought my current Dodge-Cummins. My previous Dodge had 230,000 miles on the odometer and the dealer didn't want it but they called in their wholesaler who bid a price that was acceptable to me. The dealer allowed me that figure as "trade allowance" subtracting that number from the purchase price of my new truck. I paid sales tax on the difference.

The wholesaler didn't pay tax on his purchase of my old truck because he was a licensed dealer but the buyer who bought it from him did.
 
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ezshift5

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Joined
Sep 2, 2003
Location
West Coast
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2013 JSW TDI (Enroute BB).......2017 Jetta 1.4 turbo 5M ....................
.........no wonder folks move to Texas (I have doubts this approach would fly in government intensive California)

ez

USNR (Ret.)
 

kjclow

Top Post Dawg
Joined
Apr 26, 2003
Location
Charlotte, NC
TDI
2010 JSW TDI silver and black. 2017 Ram Ecodiesel dark red with brown and beige interior.
Ordinary folks in Texas have long used a completely legitimate practice called "in and out" to save sales tax when selling a car in a private separate transaction and buying a replacement.

I've done it myself.

It works like this: You and I agree that you will buy my current car (boat, motorcycle, rv) for $XXXX.00. I arrange to buy a replacement from a local franchised dealer and also arrange with the dealer to do an in and out transfer of my current car.

I sign the title of my current car over and hand it to the dealership when I purchase my new car. I pay for the new car and pay sales tax on the difference. You pay the agreed price for my "trade" to the dealer and pay sales tax on your purchase price.

The dealership made no money on the trade or perhaps we all agreed that the dealer could mark the price up by a couple hundred bucks for their trouble.

Everyone got what they wanted. Everyone is happy.

My Dodge dealer did an in and out transaction for me several years ago when I bought my current Dodge-Cummins. My previous Dodge had 230,000 miles on the odometer and the dealer didn't want it but they called in their wholesaler who bid a price that was acceptable to me. The dealer allowed me that figure as "trade allowance" subtracting that number from the purchase price of my new truck. I paid sales tax on the difference.

The wholesaler didn't pay tax on his purchase of my old truck because he was a licensed dealer but the buyer who bought it from him did.
Sounds like most trade ins that I've done. Wheels about to fall off and the dealer calls the wholeseller to see if they can give me something better than $500.
 

BeninNB

Member
Joined
Jul 27, 2013
Location
Toronto
TDI
none
Tade in

This is called "paper trade" in dealer terms.
It is more common in Canada where sales tax is horrendously high.
Up to 15% in some provinces
 

DanB36

Veteran Member
Joined
Jul 13, 2003
Location
Savannah, GA
TDI
2014 Q5 Prestige TDI, Monsoon Gray
.........no wonder folks move to Texas (I have doubts this approach would fly in government intensive California)
It wouldn't fly in California because the sales tax is charged on the sales price of the car, and doesn't take the trade into account at all.
 

PC Passat

Active member
Joined
Jun 10, 2009
Location
Scottsdale, Az.
TDI
2017 Jetta GLI
Arizona Title 44-1263 states that if a manufacture accepts a non repairable car back without replacing the car with another one that the manufacture owes the person who bought that vehicle a refund of tax paid on that vehicle. It also sort of states that you only owe tax on the difference if the manufacture replaces the vehicle. I would think that the VW dealer you buy a replacement from could be considered an agent of the manufacture because you can only buy new vehicles from their approved dealers.
Lots of tdi's to give back might make this worth looking into.
 
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