SIGNED! 2023 VW ID 4 Pro RWD

Signed Deals & Tips
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I didn’t want to go to the trouble of photocopying the lease, sorry.

I’m still a little nervous about whether this was the deal I wanted, even after signing, because I don’t fully trust that the sales manager was right that there is no sales tax due in DC because it’s an electric car. The dealerships’ regional trade group has a web page saying that sales and use tax on leases IS still due for DC … if it is, that adds $34 a month to my payment… I even showed the page on my phone and he said it’s not right, it’s not owed. I had even talked to someone at that trade group on Friday and he said you do pay the sales tax. I tried calling the city tax office for a question about whether the rebates are taxable and nobody knew nothing… (There is no excise tax due for EVs in DC at purchase, DC tax website says that but is silent on sales tax and EVs for leases.)

The lease says N/A on sales tax, but there’s also fine print that says “You must pay sales use or similar taxes assessed on the vehicle whether such fees or taxes are billed during or after the lease term and whether you are billed for them by the government or whether we pay them and bill you for them or include the amount of such taxes as part of your scheduled payments.”

And I asked the manager to put an initial that there would be no taxes at that paragraph, but the finance guy said it’s not allowed.

Anyway, I was shooting for $349 with tax included, though I also expected to have more DAS… ($2,219) Anyway, here’s what I can share:

36 months, 10,000 miles

MSRP $45,671
Agreed price $39,641.48
Rebates $9,650 ($7,500 IRA tax credit, $500 VW Customer Bonus and ???)
Adjusted capitalized cost $32,123.95
Residual value $24.205.63
Rent charge $4,501
total base scheduled payments $12,420
$1,650 due at signing (covers temp tags, registration, new tags – 253.99, lease acquisiiton fee, and part, but not all of the $899 documentation fee)
I agreed to a $199 one time VW theft protection.

Thanks for all your help, it was invaluable. I did my best to get a good deal. It’s hard!!

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Just a quick google search reveals that DC does indeed have a tax exemption on EVs. As long as your contract says distinctly what your monthly payment, I would be okay thinking that whatever you think your payment is will be it.

Looks like a very good deal, interesting you had a DAS considering VW is doing their sign and drive event, but if you didn’t it would’ve been rolled into the lease anyway and you would’ve been paying rent on that amount.

At the end of the day, if you feel good about it, don’t let anyone dissuade you from your hard work.

I just picked up a VW ID4 Pro S AWD myself yesterday and I left some $$$ on the table but I’m okay with everything and saw exactly where they were adding some cost to the deal.

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Hey there! Fellow DC resident here (upper northwest). I can confirm there is no sales tax on a ev purchase but, unfortunately, you have to pay sales tax on ev leases at the rate of 10.25% on the monthly. It sucks, doesn’t make sense, but is what it is. 10.25% adds up to be a lot too!

How do I know? Flipped a few teslas during Covid and enjoyed the tax free purchase plus just leased an EQS and pay a fun chunk in ‘excess tax’ or 10.25% :slight_smile:

I think registration on EVs is a lot less though but never bothered to figure out the delta. Plus you don’t need to head to SE the one inspection station in all of the city to get it smog tested every other year!

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Thanks. It’s so terrible he lied right to my face like that. Did the EQS dealer include it in the payment?

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Great discount off MSRP. Well done!

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I don’t follow the deals on the IDs much but this seems pretty strong regardless of taxes. I would just wait and see if something comes back from VW around missing tax. You have the car, signed the lease with those terms. See if something bounces back. I’m sure the dealer will make you whole - it’s about $35 pm in taxes.

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Thanks for the advice. I don’t know if the dealer will make me whole, given that I emailed the sales manager and offered to pay $800 more upfront so as to truly pay all the one-time fees up front and then have a $341 monthly payment including taxes… (this was assuming a .00203 MF) and he ignored the email.

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It’s a good deal. Don’t be nervous. Enjoy. Oh, and yes, a dealer that doesn’t lie, will be very very hard to find.

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Thanks, that makes me feel better. And the robo-parallel parking is wicked cool!

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