I’m in Nebraska.
I did a lease on an ID4 and requested an immediate lease buy-out quote from Volkswagen credit.
In the quote, there is included a $976 “Residual Payoff Tax”.
Can anyone explain what that means? The adjusted cap cost on the vehicle was ~$32,000. So will I pay sales tax on the full adjusted cap cost ON TOP OF that $976, or is that amount going to reduce the sales tax I pay when buying out the lease?
It’s tax on the residual, I assume your tax on the lease portion is monthly, not the sales price(total cap cost). So in total your tax is the total on the monthly plus the $976 on the residual. So looks like about 4%, so the monthly tax($548) plus the $976 is $1524. Not sure what the question is.
I guess I’m wondering, when I go to the DMV to register the car / change the title to my name, will I get hit with sales tax again, and for what amount?
I doubt it, if VW is already collecting it then you wouldn’t have to pay again.
you should get something saying tax ‘prepaid’
You might get hit with a county/city tax when you register if VW is only collecting the state sales tax. If you want to know for sure, call VW and see what is included in the amount they collect and call your DMV to see if anything else is due.
If this is the only paperwork then you might end up being partially double taxed.
The “remaining payments” have tax embedded in them but there’s no breakdown of it?
Your state might say you owe the difference between $1,3xx and $976
It’s really stupid VW Credit does it this way.
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