“Tax Assessed” on lease sold to CarMax

Ask the Hackrs
1

I sold my Honda lease to CarMax almost two weeks ago and my HFS account finally updated to reflect it.

The payoff amount Honda gave CarMax is equals out to the payoff (18,718.xx) plus $350 disposition fee, and the $31.50 tax assessment shown below.

My question, what is the is the top line “Tax Assessed $337.28”

My account doesn’t show that I owe anything at this, is this something I’ll get a new statement for, or is this something CarMax has to pay to Honda. If I do owe it, I’d like to pay it before I forget about it.

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2

First step is to call the bank and ask

2 Likes
3

See if you can get them to waive the ‘turn in fee’, ONE guy here did get a refund (out of hundreds who tried)

4

Was hoping someone else sold a Honda to CarMax (or another dealer) and could chime in.

Was on hold forever last time I called, but yes, if it doesn’t update or nobody had a similar situation, I suppose I’ll have to. :pensive:

5

That tax amount is suspiciously low. Is PA an upfront tax state on Leases?

6

It’s on the monthly payment (6% sales tax + 3% lease tax), so 9% total.

Philadelphia and Allegheny county are 8+3 and 7+3, so slightly higher.

7

I think I figured it out. I believe the number reflects the unpaid tax on the remaining part of the lease. The way I look at it I shouldn’t be on the hook for it since I’m no longer leasing the vehicle and it was sold to a dealer.

The monthly tax portion of my payment was $24.09

14 months left when I sold

14 x 24.09 = $337.26

1 Like
8

@AutoCompanion is PA a tax upfront state?

9

Nope, tax is paid on the monthly payment.

10

I don’t really agree with it since it was sold to a third party, but I’m also not going to spend countless time fighting for it

11

No. Tax on monthly, 3% usage plus local.

There is tax on buyouts, even if immediately reselling.

12

The Honda lease contract is pretty clear that the fee is due unless you buy it out, but one person has had success fighting it.

13

Let me check if that is what it is.

1 Like
14

Adds up, but doesn’t make sense unless it’s upfront tax that has been amortized in some weird not really monthly but kinda monthly set up.

15

Oh I agree that I owe it and I’m not going to even try arguing it with Honda.

But I do shake my head at the idea of paying a disposition fee when the car isn’t going back to a (Honda) dealer. At that point it’s just a way for the bank to make a few extra bucks……hard to believe I know lol.

16

Don’t worry about it, you don’t owe anything to Honda Financials. I sold two cars to them & that’s how they payoff/close your loan.

1 Like
18

The disposition fee is included in the dealer pay off amount.

19

How does VW deal w 3rd party buyouts do they charge more? My payoff is 16,300 and was offered 20,402 from vroom. If I have to pay the tax and than sell I will if I have to

20

Yes, vw charges market rate to 3rd party dealers

21

That stinks thanks for the info…how do I check what their market rate would be so I can see if I’m better off paying tax