Is Lease transfer considered sale and has sales tax?

In the process of VW lease transfer (vw calls it assumption) to a friend and he is approved for the transfer and I got the transfer package to sign and send back. One of the documents had all the conditions and need your help on one of the points in particular. It states “A lease assumption may be considered a sale and you may be charged sales tax up front at the time of registration. This amount varies and may be considerably large. Check your local DMV”. Any input on this point? Both of us are in Illinois and it had 13 months lease left. Thanks for your input.

That clause is probably there for certain states like TX and VA where you are taxed on the entire cost of the vehicle :man_shrugging:. You may want to call your DMV to see if you can get better clarification.

Also, usual PSA, the original lessee is still liable on a VW Credit lease. So if your friend doesn’t pay or skips town, you’re on the hook for it. You probably are aware of it, but just needed to point it out. Good luck!

Thanks for the advice. Yes, I am aware of that point of still being in the hook after transfer and fine with it in this case.