Edmunds Answers

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  • avatar MrShift@Edmunds 01/02/08 11:49 am PST

    That's right, you can't sell this car because you don't own it yet. The options are for you to buy the car from the leasing company, if you have that option, and then sell it to the neighbor, or arrange for the neighbor to buy it from the leasing company if they'll do that, thus avoiding double sales tax. Most leasing companies prefer to just send the cars to auction but that really depends on the company. This is kind of complex and DMV laws vary state to state. You might want to consult with your DMV (speak to a supervisor if you can) about this sales tax issue. If you don't use or register the vehicle, merely transfer title right after purchase, maybe you can skip this part in your state.

Answers

  • MrShift@Edmunds 01/02/08 11:49 am PST

    That's right, you can't sell this car because you don't own it yet. The options are for you to buy the car from the leasing company, if you have that option, and then sell it to the neighbor, or arrange for the neighbor to buy it from the leasing company if they'll do that, thus avoiding double sales tax. Most leasing companies prefer to just send the cars to auction but that really depends on the company. This is kind of complex and DMV laws vary state to state. You might want to consult with your DMV (speak to a supervisor if you can) about this sales tax issue. If you don't use or register the vehicle, merely transfer title right after purchase, maybe you can skip this part in your state.

  • madmanmoo 01/02/08 4:16 pm PST

    I don't think you can get away from paying double taxes. You could include that in your price for the potential owner.

    I have seen this become an issue for a number of people. As above poster mentioned, I would check with local authorities to see what your options are. In GA, you're getting double taxed.

    Good luck!

  • mackabee 01/04/08 6:02 pm PST

    Normally it shouldn't be a problem. You can payoff the lease and get title to the vehicle then sell it to your neighbor. He should be the one paying tax on it not you.

    Source: I sell them and lease them

  • carlawyer 02/01/08 1:27 am PST

    Depends on your state. In CA you just need to pay tax once. Here's what you do:

    1. Call Acura and ask them if they will send you the bill of sale and let you register the car and pay the taxes. Make sure they dont charge the sales tax.
    2. Call the DMV and ask them it they will let you do as follows.
    3. Write up a bill of sale between your buyer, transferring all your interest in the vehicle to him.
    2. Have the buyer pay off the lease loan balance.
    3. When you get the title and bill of sale sign off on that bill of sale as if you're buying from Acura. Then fill out another bill of sale transferring from you to the buyer. Take those forms to the DMV within 10 days.

    This works in CA. But make sure you call the DMV and Acuar in your state before you proceed. Make sure you have confirmation that this will work before you do so. Dont just take my word for it. Good Luck!

    Source: dealerfraud.org

  • joel0622 03/20/08 8:48 am PST

    Go to the dealer you leased it from and ask them to handle the transaction. They will take the car back in and in turn sell it to your buyer. You may have to pay a Doc Fee for them handling the transaction but that is cheaper then paying the taxes twice. It will also relive you of the hassle of chasing titles and registrations and takes you completely out of the loop. It is then a transaction between the dealer and buyer.

  • movinmetal1 04/15/08 12:05 am PST

    It will cost quite a bit more money of a dealer handles a purchase, lease payoff, and resale, for obvious reasons.

    This is actually a fairly routine process and I have handled these several times for clients here in CA.

    Open up the dialogue with the leasing entity, not the originating dealership. Get the payoff, or residual if the lease is concluding, and ask about any additional fees that may be due. The very last thing in the world the lessor wants is to have to send the truck around to pick up that car.

    For this reason, you may be able to negotiate a lower amount to purchase the vehicle. This was more common a few years ago when residuals were woefully inaccurate(for a variety of reasons) but is still known to happen on occasion. Why not try?

    Depending on the vehicle, the original deal structure and length of term, very often the lessee can make a couple of thousand dollars on transactions of these kinds. Of course, it isn't like 'profit'...after all, it is their money! They have already purchased whatever leverage they have or don't have.

    If the mileage is significantly under the alloted amount, it is crazy not to at least run an ad and see what comes up.

    Finally, if you are over your alloted mileage, do a quick study on average pricing in your area for your vehicle specs. You may well be able to sell the car, or at least attempt to sell the car, and may be able to minimize the damage. If you have to make up the difference in cash, well...you were going to do that anyway!

    Also, please don't park your car when your mileage is close or feel bad about it. These are not really 'penalty' charges, they are simply the cost of the additional use that you did not pay for in advance.

    Nobody knows how their lives might change over a lease term, and deferring the payment of this usage until the end of the lease is not a bad thing. These miles will cost you perhaps 33% more, but what if you hadn't used them? There are no refunds on lease mileage!! Also, no crying in baseball.

    Source: CAR FU: Self-Defense for Car Buyers

  • movinmetal1 04/15/08 12:16 am PST

    On the tax question, the new owner will register it. Tax will be paid when the vehicle is registered, one time. The car is registered to you already.

    They will take a signed bill of sale and release of liability to the DMV or AAA and pre-register the vehicle while waiting for the title to arrive.

    You ARE paying it off, as far as the leasing entity is concerned, and they will be sending the title to you at your address. But the new owner will be the one registering it and you will provide the title to them upon receipt.

    Believe it or not, the state really does not want to punish you in this instance. Call AAA and the lessor and have them walk you through it.


    .

    Source: http://www.car-fu.com

  • fullhouse3 05/08/08 8:55 am PST

    There is just one solution to your problem, pay the remaining debts after that decide if you still want to sell the car to your neighbor.

    Source: http://cars.ozfreeonline.com

  • trikev19 05/11/08 2:38 pm PST

    Your dealer should help you with the transaction for a small fee.

  • subearu 05/30/08 9:21 pm PST

    My dad just worked with his Toyota dealer to turn in his leased RAV4 and sell it to a coworker. Both the leasing company and his salesperson that he worked with (they got a new car from the same place) made it painless. The finance guy at the dealer try sneaking in a couple of fees (inspection fee, etc), but in the end they didn't charge anything because of the arrangement the lease company made with my dad and the fact that this was a 3rd party "as-is" sale. The dealer isn't spending money, just pushing a few pieces of paper around.

    You may find dealers that aren't as willing to do this, but if you're persistent you should be able to work this type of deal out.

    -Brian

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