Optical TDI

Sorry for the post here, but I'm getting no action in the "off-topic" forum.

I'm trading our van on a new one. It's a lease, but they dealer is buying my van for $10,500. They said it will take about one week after delivery of the new one to get our $10,500 check. It's a reputable and long standing VW dealer in the area.

I owe nothing on the van and have a clear title in hand. Is this normal or should I demand a check on delivery of the new van?

LVDell

I'm confused, why wouldn't they discount the price of the vehicle instead by the 10.5K and thus lower your lease payment significantly.

Rob996

Not as knowledgeable about US TAX, but there is an advantage to trade the old car in as you only pay sales tax on the difference. Which could also be benefincial for leases if you are lowering the lease amount..

Good luck

LVDell

It's state dependent so it only works on specific states. But yes, when the state allows you to apply the trade-in to the purchase/lease price you can lower you tax debt.

nick49

The dealer maybe shopping the van or even taking it to auction. More than likely he has to wait for his money and does not want to advance you funds that he hasn't seen. Have him show the purchase as a trade to lower your sales tax liability. Waiting for the cash is fine, if uneasy about it have put it in writing the maximum wait time. Sometimes these things take longer and get neglected.

Optical TDI

New car is a lease so no tax advantage. I want the cash for something else, not a lower payment.

Optical TDI

That's how they will be selling it for sure, but that's not my issue if they do sell it or not. I'm not too worried because it's a good dealer, but I thought it sounds a bit odd. Never been in a positive equity trade before.

Barn996

Have you purchased from this dealer before? I would think you could modify the IOU from the dealer to have a specific paid in full date to you, a deferred pay't , but not open ended like "it will take about a week".

rpm's S2

The wait makes no sense. Any new car dealer should be able to front $10k without hesitation. Chump change. If you can, I'd wait the week before I gave them the keys to the van and took delivery of the new vehicle... or at least get a better explanation.

C4CRNA

Hold the title till the check clears.They may be in financial hardship!

Dharn55

You are not the dealer's bank. They should be paying you when you give them the keys and title. If not at least put you as a lien holder on the title you give them, in Illinois there is a space on the title for this, not sure in Ohio.

Or take the van to CarMax and see what they will give you. They pay up front.

wyovino

Agreed. Don't deliver the title until you have the cash in hand.

LVDell

AH, so you wanted the cash to spend rather than bring down the cost of the lease. Now it makes sense. I couldn't understand why you needed a check.

Like others have said, I would NOT give my car over t anybody without cash in hand. They sure aren't going to let you off the lot without you paying them for the car so why do yo have to wait for a check?

SWK6Cup

OpticalTDI:

The others are dead-on, IMHO. "Reputable" and "longstanding" don't amount to a whole heck of a lot in today's ecomony. Why give the dealer an interest free "loan?" I've never heard of such a thing...he''ll give you a check in a week or so...and your bank might put a hold on the deposit, too before the funds are available....everybody is making a few buck off you. I would have them wire the money to your account. Verify it's there, hand over the keys, and executd title. Sounds like the dealer (or manager) is pretty shady, or playing you for a fool. VW dealer feels they have you locked in and, hey, if you can wait 10 days for your money........the dealer wins in every way.

Be smarter, demand payment when you hand over title/keys. You are selling the vehicle and really don't want to be in a lienholder position. Good idea, but all it really does is complicate the process and cost you more time to go back and sign-off on the title and it also costs the dealer more money. Having said that, demanding that you are given a lienholder position on the title is a good ("strategery"), because if that is unacceptable, then he can wire you the funds, or give you a check. If not, find another dealer, period.....They aren't the only ones with the van you want and any dealer VW- (or....Porsche?????) can or will be able to service your new one.
Most likely, you wouldn't give anyone else anything of value of yours (a watch or a ring) and let them shop it around before they pay you. They are in the business of selling cars and that means that they have a damn good idea of what your van is worth, period. If they can't pay you for it, then don't accept the "wimpy burger" excuse.......I'll gladly pay you next Tuesday......

my .02
r\
scott

Canuck714

Look at it this way... Do you get to take a car off their lot and tell them you'll send a check in a week to 10 days...lol