Need some finance advise for my new RS3!
07-04-2017, 01:07 PM
#1
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Need some finance advise for my new RS3!
Hey guys,
Here is the situation, my RS3 will be here soon so I had my 2014 S4 appraised by my dealership. Everything went well except for the fact that I was told that even if I trade in my 2014 S4 which was leased by Audi I will have to pay full 7% sales tax on my new car.
Does anybody have experience with this kind of situation? Since I paid the full 7% ad valorem tax in Georgia when I leased my S4 I was surprised to learn that the tax rule does not apply to leased vehicles when traded in at the end of a lease.
It's a bit of a bummer since I now have to pay $4,500 sales tax for my new car. I cannot even go the alternative route and pay off my lease since I then need to pay the 7% tax on the cars value. If I would do that I would lose the value advantage since the dealer is paying me more than the residual value of the lease...roughly $2,500 more.
Need some advise please.
Here is the situation, my RS3 will be here soon so I had my 2014 S4 appraised by my dealership. Everything went well except for the fact that I was told that even if I trade in my 2014 S4 which was leased by Audi I will have to pay full 7% sales tax on my new car.
Does anybody have experience with this kind of situation? Since I paid the full 7% ad valorem tax in Georgia when I leased my S4 I was surprised to learn that the tax rule does not apply to leased vehicles when traded in at the end of a lease.
It's a bit of a bummer since I now have to pay $4,500 sales tax for my new car. I cannot even go the alternative route and pay off my lease since I then need to pay the 7% tax on the cars value. If I would do that I would lose the value advantage since the dealer is paying me more than the residual value of the lease...roughly $2,500 more.
Need some advise please.
07-05-2017, 03:44 AM
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Others may have more specific advice, but I think you're doing the best you can if the dealer is giving you an extra $2,500. That means you're only paying "$2,000" in taxes if you do the dealer trade, which isn't bad on a $65k car. Otherwise you're leaving money on the table. And you'll get to write it off when you do your 2017 taxes next year, so you'll make a chunk of it back. You just have to let Uncle Sam hang onto it for a half a year. Payment-wise, $2,000 isn't gonna change things much. It sounds like a lot, but it really isn't.
07-05-2017, 05:27 AM
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I'm not an accountant but I do not believe that sales tax is deductible on your taxes.
Others may have more specific advice, but I think you're doing the best you can if the dealer is giving you an extra $2,500. That means you're only paying "$2,000" in taxes if you do the dealer trade, which isn't bad on a $65k car. Otherwise you're leaving money on the table. And you'll get to write it off when you do your 2017 taxes next year, so you'll make a chunk of it back. You just have to let Uncle Sam hang onto it for a half a year. Payment-wise, $2,000 isn't gonna change things much. It sounds like a lot, but it really isn't.
07-05-2017, 05:31 AM
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Others may have more specific advice, but I think you're doing the best you can if the dealer is giving you an extra $2,500. That means you're only paying "$2,000" in taxes if you do the dealer trade, which isn't bad on a $65k car. Otherwise you're leaving money on the table. And you'll get to write it off when you do your 2017 taxes next year, so you'll make a chunk of it back. You just have to let Uncle Sam hang onto it for a half a year. Payment-wise, $2,000 isn't gonna change things much. It sounds like a lot, but it really isn't.
Hopefully Audi will confirm the owners loyalty on the 2018 model soon. I don't think it will change as they paid $750 for the 2017 models.
07-05-2017, 07:04 AM
#5
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I'm sort of in a similar boat shivamerlin; how to best finance my RS3. I've had my modified S3 on the market over a month now and no solid leads. Trade offer from my Audi dealer left me very, very disappointed. I'm a government worker for the US Air Force and this car is a financial stretch for me but I really want it now while I can enjoy it. Been looking at creative finances very closely but it's clear that I will take a good loss on the S3. Was not expecting that. I think I can live with 1 kidney however.........
07-05-2017, 07:25 AM
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I'm sort of in a similar boat shivamerlin; how to best finance my RS3. I've had my modified S3 on the market over a month now and no solid leads. Trade offer from my Audi dealer left me very, very disappointed. I'm a government worker for the US Air Force and this car is a financial stretch for me but I really want it now while I can enjoy it. Been looking at creative finances very closely but it's clear that I will take a good loss on the S3. Was not expecting that. I think I can live with 1 kidney however.........
Also many people are scared away by tuned cars with valid reasons.
How much are you trying to get for your S3? How much does your dealer offer?
07-05-2017, 08:09 AM
#7
I hear you. I think the big difference between the cars we are trying to sell is that there are many used S3's on the market. There are also plenty of used S4's however not many with manual transmission.
Also many people are scared away by tuned cars with valid reasons.
How much are you trying to get for your S3? How much does your dealer offer?
Also many people are scared away by tuned cars with valid reasons.
How much are you trying to get for your S3? How much does your dealer offer?
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07-05-2017, 08:27 AM
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07-05-2017, 08:36 AM
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[QUOTE=shivamerlin;24996081]Hey guys,
Here is the situation, my RS3 will be here soon so I had my 2014 S4 appraised by my dealership. Everything went well except for the fact that I was told that even if I trade in my 2014 S4 which was leased by Audi I will have to pay full 7% sales tax on my new car.
Does anybody have experience with this kind of situation? Since I paid the full 7% ad valorem tax in Georgia when I leased my S4 I was surprised to learn that the tax rule does not apply to leased vehicles when traded in at the end of a lease.
It's a bit of a bummer since I now have to pay $4,500 sales tax for my new car. I cannot even go the alternative route and pay off my lease since I then need to pay the 7% tax on the cars value. If I would do that I would lose the value advantage since the dealer is paying me more than the residual value of the lease...roughly $2,500 more.
Need some advise please.[/QUO
In Georgia, when you go from a lease to a lease you do not get any tax break on the sales tax (TAVT) for your new car. The reason is that you do not own the car, the leasing company does. I am in the market currently and I own my S5. If I go to a lease and trade my car in, I will pay TAVT on the difference between my trade and the cap cost. Then in 3 years I would be in the same spot as you if I were to lease the next car.
As a side note, I am loosely familiar with BMW owner's choice program where the car is titled to you with a balloon payment at the end of the 3 year term. I am under the impression that you are not responsible for the balloon payment and that you can walk away. The point is that after the OC term when you go into your next car, you can offset the TAVT with your car because it is titled to you not a leasing company. Pretty confusing either way, good luck!
Here is the situation, my RS3 will be here soon so I had my 2014 S4 appraised by my dealership. Everything went well except for the fact that I was told that even if I trade in my 2014 S4 which was leased by Audi I will have to pay full 7% sales tax on my new car.
Does anybody have experience with this kind of situation? Since I paid the full 7% ad valorem tax in Georgia when I leased my S4 I was surprised to learn that the tax rule does not apply to leased vehicles when traded in at the end of a lease.
It's a bit of a bummer since I now have to pay $4,500 sales tax for my new car. I cannot even go the alternative route and pay off my lease since I then need to pay the 7% tax on the cars value. If I would do that I would lose the value advantage since the dealer is paying me more than the residual value of the lease...roughly $2,500 more.
Need some advise please.[/QUO
In Georgia, when you go from a lease to a lease you do not get any tax break on the sales tax (TAVT) for your new car. The reason is that you do not own the car, the leasing company does. I am in the market currently and I own my S5. If I go to a lease and trade my car in, I will pay TAVT on the difference between my trade and the cap cost. Then in 3 years I would be in the same spot as you if I were to lease the next car.
As a side note, I am loosely familiar with BMW owner's choice program where the car is titled to you with a balloon payment at the end of the 3 year term. I am under the impression that you are not responsible for the balloon payment and that you can walk away. The point is that after the OC term when you go into your next car, you can offset the TAVT with your car because it is titled to you not a leasing company. Pretty confusing either way, good luck!
07-05-2017, 09:21 AM
#10
[QUOTE=saw1;24996427]
Yep, Audi offers the same thing as BMW and it's called Premier Purchase. You can walk away at the end of the term like a regular lease or you can opt to buy it out of course but you won't have to pay the sales tax again on the total value of the car if I understand it correctly.
Hey guys,
Here is the situation, my RS3 will be here soon so I had my 2014 S4 appraised by my dealership. Everything went well except for the fact that I was told that even if I trade in my 2014 S4 which was leased by Audi I will have to pay full 7% sales tax on my new car.
Does anybody have experience with this kind of situation? Since I paid the full 7% ad valorem tax in Georgia when I leased my S4 I was surprised to learn that the tax rule does not apply to leased vehicles when traded in at the end of a lease.
It's a bit of a bummer since I now have to pay $4,500 sales tax for my new car. I cannot even go the alternative route and pay off my lease since I then need to pay the 7% tax on the cars value. If I would do that I would lose the value advantage since the dealer is paying me more than the residual value of the lease...roughly $2,500 more.
Need some advise please.[/QUO
In Georgia, when you go from a lease to a lease you do not get any tax break on the sales tax (TAVT) for your new car. The reason is that you do not own the car, the leasing company does. I am in the market currently and I own my S5. If I go to a lease and trade my car in, I will pay TAVT on the difference between my trade and the cap cost. Then in 3 years I would be in the same spot as you if I were to lease the next car.
As a side note, I am loosely familiar with BMW owner's choice program where the car is titled to you with a balloon payment at the end of the 3 year term. I am under the impression that you are not responsible for the balloon payment and that you can walk away. The point is that after the OC term when you go into your next car, you can offset the TAVT with your car because it is titled to you not a leasing company. Pretty confusing either way, good luck!
Here is the situation, my RS3 will be here soon so I had my 2014 S4 appraised by my dealership. Everything went well except for the fact that I was told that even if I trade in my 2014 S4 which was leased by Audi I will have to pay full 7% sales tax on my new car.
Does anybody have experience with this kind of situation? Since I paid the full 7% ad valorem tax in Georgia when I leased my S4 I was surprised to learn that the tax rule does not apply to leased vehicles when traded in at the end of a lease.
It's a bit of a bummer since I now have to pay $4,500 sales tax for my new car. I cannot even go the alternative route and pay off my lease since I then need to pay the 7% tax on the cars value. If I would do that I would lose the value advantage since the dealer is paying me more than the residual value of the lease...roughly $2,500 more.
Need some advise please.[/QUO
In Georgia, when you go from a lease to a lease you do not get any tax break on the sales tax (TAVT) for your new car. The reason is that you do not own the car, the leasing company does. I am in the market currently and I own my S5. If I go to a lease and trade my car in, I will pay TAVT on the difference between my trade and the cap cost. Then in 3 years I would be in the same spot as you if I were to lease the next car.
As a side note, I am loosely familiar with BMW owner's choice program where the car is titled to you with a balloon payment at the end of the 3 year term. I am under the impression that you are not responsible for the balloon payment and that you can walk away. The point is that after the OC term when you go into your next car, you can offset the TAVT with your car because it is titled to you not a leasing company. Pretty confusing either way, good luck!