Audi supplier discount and loyalty program
12-12-2012, 11:37 AM
#21
AudiWorld Super User
I've bought vehicles from other brands (Audi may or may not be the same) where the purchase paperwork fine print on the XYZ employer/supplier/fleet discount plan explicitly states that the vehicle must remain titled to the original owner for a certain period of time (unless destroyed in an accident, by an act of God, etc.). If not, the brand can charge the dealer back for the amount of the discount, and the dealer can then take legal action against the buyer.
Bottom line, it appears possible that one could have a friend who qualifies for the Supplier discount purchase the car and then turn around and sell it back to you. There's obviously some risk to that and I would guess there would be sales tax applied a second time along with another round of registration fees. (Most states use NADA value or the purchase price, whichever is higher to calc used car sales tax so this could not be circumvented with a $1 sale of a $50K car). This would probably negate doing this financially.
12-12-2012, 02:43 PM
#22
AudiWorld Member
I checked my Audi Supplier form and my purchase contract and there is nothing anywhere that provides forfeiture of the discount based on minimum time of ownership. I also noticed that it is based on one vehicle per household during the program year. So, while it doesn't state that the employee must be on the vehicle title, it does say the purchaser must be a family member residing at the same address. In any case, my dealer required my wife (the employee) and I both be on the registration (which we prefer, regardless).
Bottom line, it appears possible that one could have a friend who qualifies for the Supplier discount purchase the car and then turn around and sell it back to you. There's obviously some risk to that and I would guess there would be sales tax applied a second time along with another round of registration fees. (Most states use NADA value or the purchase price, whichever is higher to calc used car sales tax so this could not be circumvented with a $1 sale of a $50K car). This would probably negate doing this financially.
Bottom line, it appears possible that one could have a friend who qualifies for the Supplier discount purchase the car and then turn around and sell it back to you. There's obviously some risk to that and I would guess there would be sales tax applied a second time along with another round of registration fees. (Most states use NADA value or the purchase price, whichever is higher to calc used car sales tax so this could not be circumvented with a $1 sale of a $50K car). This would probably negate doing this financially.
Basically assuming if one's friend qualifies for supplier program, he/she buys a car and makes a gift to his/her friend, obviously collecting undeclared money in unofficial manner takes place. This transaction will circumvent the assessment of sales tax. It however will trigger the gift tax return filing requirement for a gift giver. There wont be any gift tax due as a gift giver can exclude the amount of gift under internal revenue code provision but it will reduce life time exclusion amount. This is just a theory.
12-12-2012, 06:56 PM
#23
AudiWorld Super User
In MA you can claim an exemption for sales tax if the car is a gift. However, if you lie on the form that no payment was received for the gift, you are committing fraud and would be subject to a fine and penalties including jail time. I would guess other states have similar laws and regulations. Not a good solution I would think.
12-12-2012, 08:33 PM
#24
AudiWorld Member
In MA you can claim an exemption for sales tax if the car is a gift. However, if you lie on the form that no payment was received for the gift, you are committing fraud and would be subject to a fine and penalties including jail time. I would guess other states have similar laws and regulations. Not a good solution I would think.
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