Lease buyout and trade in for a new purchase

Ask the Hackrs
1

In NYS

Currently Leasing a car through chase and received a buyout quote of 50k. This includes final sales tax of the 50k according to chase.

Thinking of buying another car for 80k, received a trade in quote of 50k for my current car which is an even wash.

Do I pay the sales tax on the entire 80k for the new car or the difference of 30k.

Tesla has given me multiple conflicting answers on the sales tax issue. I hope someone on here can give me the correct answer.

My thought process to the sales man who said no I must pay tax on the entire vehicle is, what if I just pay off the car in cash(assuming I had the cash) for the buyout of 50k, then trade it in, I would then only pay the taxes of the difference saving me about 4K.

I don’t see the difference, just an extra step. The logic is still the same, the payoff quote includes tax and I’ve paid tax on the rest (monthly payments). It’s just surprising more people haven’t traded in a lease.

Hope someone can help.

2

If your current vehicle is a lease, you did not pay taxes on the $50k balance, so there’s no reason you could get credit for the taxes that you didn’t pay.

What is this mysterious trade in vehicle? Are you sure you’re looking at the dealer payoff and not your personal pay off?

3

The 50k is my payoff I received through the chase app

I, ironically just got off the phone with chase and received the “dealers payoff” which is 47k

4

It’s a Range Rover velar. P380 r. It’s amazing and I will miss it dearly.

5

I’m that case, you should be getting $3k in equity from your trade, but should not be getting any tax credit for the trade.

Also means you should really get yourself some purchase quotes from carvana, shift, vroom, etc to comparison shop your trade value

6

Hmm interesting. Stupid question but if carvana etc buys it it will be based on 47k too?

7

You would need to confirm, but I don’t think chase has a different dealer and 3rd party payoff.

8

As late as July '20 they did not, do not know if they have changed that policy since then.

:chocolate_bar:

9

I went through their automated prompt. Said I was a dealer, put the “customers” social in and it gave me the lower trade in :man_shrugging:

As we speak, again ironically, I checked the Tesla web order page and they added the dealer payoff quote to the sales sheet. They are still evaluating the trade in (I have received 50kish a few weeks ago) so hopefully it’s not that far off

10

What does carvana offer? Takes all of 2 minutes to get a quote.

11

48k :disappointed:

Kbb offering 50 instant trade in

12

In my experience, this isn’t a real number. You fill out the thing on their website, some dealer contacts you about your kbb instant trade in offer and when you get there, suddenly the number they’re offering is $5k less than it should be.

2 Likes
13

I second that experience too. It also immediately got me on the call numbers for about 5 local dealerships.

14

Make sure you check Vroom, too. Sometimes they are better than Carvana, sometimes worse.

15

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