Taycan GTS potentially available, delivers June

[johnschlemmer]

I can’t believe I’m saying this, but the economic downturn has really upended my finances lately and I’m beginning to think I shouldn’t move forward with this purchase. It’s a Taycan GTS, delivery date set for June 17th. Attached the build sheet with some info hidden to prevent somebody from contacting my dealer before I make a final decision here. How have people handled this situation before? Is it better for me to purchase the car and resell it? Should I sell the allocation instead and change the name with the dealer?

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[wltaycangts]

John, technically the car is owned by the dealership until you pay for it when it is delivered. So I believe your selling the allocation for the car will be difficult. You choices are to (1) purchase it when it delivers and then resell it afterwards - you will have to do the math, sales tax plus registration minus the federal tax credit or (2) just tell the dealer that you won’t be taking delivery and likely they will refund your deposit. If the math works where you can sell the car at much higher than what you paid along with the hassle - you may consider doing that. Good luck With your decision.

I picked up my GTS is April and it is an excellent car.

 

[friskygeek]

It is a changable allocation? If so, Id love to take it over and customize it... But I dont think it is given that the delivery date is so near.

You should be able to take delivery and resell it in the aftermarket - even come out ahead in this tight market. Good luck!
f.

 

[Archimedes]

Dealer is not going to let you sell the allocation.

 

[Skilly]

if you lease it with a minimal drive off, you will only be on the hook for first and last plus the associated tax. From there if you resell, there isn't a tax issue to overcome and there are no penalties for early buyouts with Porsche Financial.

Work a second buyer through a broker that will use their wholesale license to avoid double tax and it should be no problem to even make a little money for your trouble.

If the deal has an ADM on it, the math will start to fall apart.

 

[Archimedes]

if you lease it with a minimal drive off, you will only be on the hook for first and last plus the associated tax. From there if you resell, there isn't a tax issue to overcome and there are no penalties for early buyouts with Porsche Financial.

Work a second buyer through a broker that will use their wholesale license to avoid double tax and it should be no problem to even make a little money for your trouble.

How does a broker avoid the double tax? The OP would pay tax when he buys the car and the next owner would pay tax when they bought it from the broker. Running it through a broker doesn’t avoid double tax.

 

[Skilly]

How does a broker avoid the double tax? The OP would pay tax when he buys the car and the next owner would pay tax when they bought it from the broker. Running it through a broker doesn’t avoid double tax.

Again with the certainty about something you don't seem to know about. Maybe soften your approach a bit and note the great loophole here, or don't.

First, I said Lease in my response. You pay tax in your monthly payment on a lease, not up front.

A broker with a wholesale license (that shouldn't be difficult to find) can purchase the car from Porsche Financial directly. They are not required to pay tax, there are no penalties for an early payoff and the lessee is not obligated beyond the payoff amount. I have already done step 1 myself, so I can tell you this is correct.

With the exception of the payments made to fund the lease (at least 3 - first, last and the first full month payment), there will only be tax for the new owner when the broker sells the car.

 

[Archimedes]

But the next buyer pays the tax when they buy it from the broker. How is inserting a broker in the middle avoiding any tax?

 

[wltaycangts]

In California, a sales tax is due on every transaction unless the buyer is a dealer or broker who may possess a sale/resale exemption. So the only way to minimize the upfront sales tax is one were to use lease financing. In that case, sales tax is assessed on each rent payment. And of course, at lease maturity the buyer would pay sales tax on the purchase option amount if the car was not returned.

 

[Skilly]

But the next buyer pays the tax when they buy it from the broker. How is inserting a broker in the middle avoiding any tax?

The original buyer is only paying tax on the portion that they lease, not the entire amount. With a wholesale/broker license, the broker is tax exempt because their purchase is intended for resale.

And the next buyer pays tax according to their state requirements.

 

[Skilly]

In California, a sales tax is due on every transaction unless the buyer is a dealer or broker who may possess a sale/resale exemption. So the only way to minimize the upfront sales tax is one were to use lease financing. In that case, sales tax is assessed on each rent payment. And of course, at lease maturity the buyer would pay sales tax on the purchase option amount if the car was not returned.

this

 

[Archimedes]

The original buyer is only paying tax on the portion that they lease, not the entire amount. With a wholesale/broker license, the broker is tax exempt because their purchase is intended for resale.

And the next buyer pays tax according to their state requirements.

So again, tell me why you need the broker involved?

And how does anybody, broker or otherwise, buy the car from the original lessee, without the lessee taking ownership of the car first?

 

[Archimedes]

this

Except ‘this’ is not what you said.

 

[Archimedes]

if you lease it with a minimal drive off, you will only be on the hook for first and last plus the associated tax. From there if you resell, there isn't a tax issue to overcome and there are no penalties for early buyouts with Porsche Financial.

Work a second buyer through a broker that will use their wholesale license to avoid double tax and it should be no problem to even make a little money for your trouble.

Reminder what you said. ‘Work through a broker to avoid double tax.’ Using a broker to sell the car on isn’t necessary and doesn’t avoid anything. The next buyer will still pay taxes.

 

[Skilly]

Except ‘this’ is not what you said.

uh huh....I did, but reading isn't your strength. See post 7# and tell me how it's different...

You seem to be missing the basics of a lease, where the owner is not the person making the payment - my bad for not seeing you didn't understand the basics of how a lease worked. Although, I did say 'A broker with a wholesale license (that shouldn't be difficult to find) can purchase the car from Porsche Financial directly.'

Again, I will say I can explain it, but I can't understand it for you.

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