Lease Buyout Sales Tax

maibad31 · August 7, 2023, 5:22pm

Hi,

Leased a Q5e with intention of immediate buyout for the EV credit in Washington state.
During the lease, I also had a trade in to reduce sales tax.

I finally have access to the payoff quote and it is showing additional sales tax. I called AFS and they said that there is nothing they can do on there end to remove it and I must go through the dealer or later get rebate from DMW.

Lease contract shows NA on J because sales tax was negated to 0 due to trade in
Section 11 shows trade in sales tax exemption of $5,980 on vehicle value of $57.5K

Any thoughts

max_g · August 7, 2023, 5:49pm

Seems like the system worked as designed. Your trade / tax benefit wiped out 36 months of monthly tax payments.

If you choose to end the lease early by buying it out, you are choosing the forego the remaining benefit.

Not sure how anyone is supposed to unwind that for you?

maibad31 · August 10, 2023, 3:31pm

Also since I did have a trade in, wouldn’t #2 go to zero?

I did find scenario 3 here and it seems like I was also charged unnecessary sales tax on the cap reduction since my trade in should have covered it. Link to WA website Trade-ins | Washington Department of Revenue