[Tslbmw]

Hello all,

I ordered a 2020 m240 back on 3/19, which is currently in transit across the pond. I leased a 2018 VW GTI last year and decided to throw it up on autotrader and see if I get any takers; if not, I was just planning to trade it in when my new car arrives. Well, long story short, I found a buyer -- he paid $27K for the car (it only had 7k miles and was a fully loaded MT Autobahn). His credit union sent the payoff to VW Credit and the title arrived today. He went to the DMV to register it and they said it needs to be placed in my name first, and then sold to him. So, I'm meeting him at the DMV tomorrow to complete the transaction. My issue is the obvious "double tax" problem. When I put the car in my name for the residual amount of $19xxx, I'll have to pay the 4% VA state tax --- then I'll sign it over to him for $27K and he'll have to pay the 4% state tax. How can this be avoided??

Could he simply pay the 4% sales tax on my transaction and then I "sell" the car to him for $8k and he then pay the sales tax on that -- that way he's only paying the taxes on $27K?? Is there something wrong with my logic here?

Tell me where I'm wrong or do you think that would be fine. If I have to pay the $780 tax, I will (certainly worth it considering the trade in value), but it also seems simply wrong that we would pay those taxes twice.

Thanks for you help!

[Rocky58]

You have to pay tax on the residual value. You just bought the car from VW. Your buyer has to pay tax on the purchase, just as he would if you had originally bought the car instead of leasing it. “Double “ taxation is a fact of life in many states for 🚗 purchases. Applicant for title will have to sign an affidavit that you sold the car for the sales price. If he puts 8K, he will be commiting perjury, a criminal violation.

[Tslbmw]

Yep, it's a bummer, but that's how we did it. Thanks!

[BEM-S4]

For others who come across this - oftentimes the dealer for the new car can help you especially if it's all the same brand. For example if you have a BMW and a buyer and are getting a new BMW, the dealer will charge you $150 for an hour of shop time to inspect the car, they will buy it from BMWFS then immediately sell it to your buyer.

The other way to go is within the lease you transfer it to your buyer for $500 or whatever then they make the buyout when the lease terminates. Typically the lease holder or the dealer can buy out a lease, but a third party cannot.

[hwntime]

The pros of living in Oregon = No sales tax
The cons of living in Oregon = They rape us on state income tax to make up for it