If I still need to register the car and then transfer it to my name and it could take 30 days, am I unable to sell this in the private market and am stuck with the car?Īlbeit a different state (NC) and pre-Covid times, I did have to title a car in my name after a USBank lease buyout. I took the car to Carmax today and they refused to purchase it, stating I need to register/title it under my name prior to selling it to them and that process would take 30 days with everything going on with the DMV.Īm I unable to sell this car to CarMax or even a private party immediately upon receiving Title VW Credit? Do I need to make an extra trip to the DMV to register or transfer title to my name? I am trying to harvest the positive equity in the car, by selling it within 10 days of obtaining title, but if there are major delays at the DMV, I’ll possibly have to end up paying sales tax on the residual value?Ĭan I sell the car immediately to a private party? Does CarMax have different protocols for selling a vehicle. The title notes VW Credit on the front with my name on the back of the title form. I had sent in the paperwork for the buy-out inclusive of payment and received title to the vehicle today. See the Knowledge Base in the Resource Center.Hey guys, I’ve been doing a good amount of research on buying out my car from VW Credit upon expiration of the lease with the intention of selling within 10 days to avoid paying use tax. The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments in accordance with paragraph 842-10-30-5(f) equals or exceeds substantially all of the fair value of the underlying asset. The NPV of the lease payments and guaranteed residual value of 0.00% is not 90% or greater of the Fair Value of the asset. Test #4 of the Classification Tests is as follows: PV of Amount Not Reflected in Payments: This amount is added to the classification test #4. Unguaranteed Residual Value: Equals the Estimated Residual value less the Residual Value Guarantee.Īmount Not Reflected in PV of Payments: Equals less less. Must be between zero and the total payment amount.Īmount Probable of Being Owed by Lessee: Equals the RV Guarantee less Guaranteed amount reflected in payments. Guaranteed Amount Reflected in Payments: Enter the guaranteed amount already reflected in payments. RV Guaranteed by Lessee: The amount at risk by the lessee. Lessor Explicitly Exempts Lessee: If yes, the RV guaranteed amount by a 3rd party will reduce the amount probable of being owed by the lessee. RV Guaranteed by 3rd Party: Residual Value guaranteed by a 3rd party, such as an insurance company, must be between zero and the residual value guaranteed. Value must be greater than or equal to zero.
RV Guaranteed: A guarantee made to a lessor that the value of the asset returned to the lessor at the end of a lease will be at least a specified amount. The value must be greater than or equal to zero. Completing this section is optional.Įstimated Residual Value: The estimated fair value of the leased property at the end of the lease term. The Residual value section is displayed when you select an applicable Classification type, such as Operating 842, Finance 842, and IFRS 16. This usage primarily applies to equipment leases rather than real estate leases.
The Residual Value section of the Add Schedule and Edit Schedule pages allows you to capture information related to the Residual Value guarantees.
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