GLE 450e Tax Credit?
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From: Fredericksburg, VA
2020 Mercedes GLE350 4Matic; 2023 Tesla Model Y
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'21 AMG53 wDPP & ARC, 19 GLC300 - Former-03 C240,2 ML BlueTecs,20 GLE450 E-ABC,15 Cayenne D,17 Macan
Yes, but it’s that pay the taxes piece that hurts. In Virginia, if you sell an entire off lease vehicle to a 3rd party you don’t have to pay sales tax, the buyer does. Same with a trade to a dealer. Normally you can get more from a third party vice the dealer…so if you get locked into having to sell to a dealer you lose leverage….most only pay wholesale or just a little over.
And that third party will pay taxes on the full amount of the purchase, unless it's a dealer.
If you're trading it in, the amount you owe or any lease status is irrelevant.
If there's hesitation from the new F&I department, they're just incompetent.
Last edited by mikapen; Dec 15, 2023 at 02:43 PM.
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From: Fredericksburg, VA
2020 Mercedes GLE350 4Matic; 2023 Tesla Model Y
Anytime a vehicle is purchased out of lease, sales tax must be paid. In all cases, buying it out of lease can only be done by the lessee. You can't sell it to a third party until you buy it, which time you pay the taxes, but only on the amount over the residual value.
And that third party will pay taxes on the full amount of the purchase, unless it's a dealer.
If you're trading it in, the amount you owe or any lease status is irrelevant.
If there's hesitation from the new F&I department, they're just incompetent.
And that third party will pay taxes on the full amount of the purchase, unless it's a dealer.
If you're trading it in, the amount you owe or any lease status is irrelevant.
If there's hesitation from the new F&I department, they're just incompetent.
- Motor Vehicle Sales and Use Tax (MVSUT) is normally collected when titling the vehicle in the lessee’s name; however, if the lessee is the original person who paid Sales and Use Tax (SUT) on behalf of the lessor he may be exempt from paying it again. The lessee must present proof that the payment was made. Additionally, the vehicle must be either acquired directly from the lessor or from the selling dealer who leased the vehicle to the lessee initially. Purchases made through another dealer will disqualify the lessee from receiving the exemption from Motor Vehicle Sales and Use Tax (MVSUT). The title must include an individual named on the lease. The lease must be to a person or persons, and it shall not include any commercial entity as a lessee.
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From: Colorado
'21 AMG53 wDPP & ARC, 19 GLC300 - Former-03 C240,2 ML BlueTecs,20 GLE450 E-ABC,15 Cayenne D,17 Macan
Kinda like I said, but VA calls it a use tax.
The lessee pays the tax monthly, as part of the monthly payment.
Any amount over the residual hasn't been taxed, so buying it out of lease requires payment on the difference.
The lessee pays the tax monthly, as part of the monthly payment.
Any amount over the residual hasn't been taxed, so buying it out of lease requires payment on the difference.
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Joined: Jan 2020
Posts: 791
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From: Fredericksburg, VA
2020 Mercedes GLE350 4Matic; 2023 Tesla Model Y
….and you also pay yearly personnel property tax (1/2 Blackbook MSRP x 6%) for Spotsylvania county ( varies by country).
Last edited by TexAg91; Dec 16, 2023 at 02:29 PM.
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Honda
MB employee here
For those concerned with "tax credit". Mercedes-Benz does not qualify for a $7500 tax credit to be claimed on your taxes on the purchase of any EV or plugin hybrid. However if the vehicle is lease Mercedes-Benz is giving you 7500 "lease cash". It is not an tax credit nor is it a rebate it is lease cash. It is a program controlled by Mercedes-Benz. The reason we do not qualify for a tax credit is because our vehicles main source of manufacturing is not completed with USA components or manufacturing. On GLEs there is no penalty to purchase the vehicle outright via cash or finance.
