Lease Payoff and Private Buyer question
10-14-2004, 08:51 AM
#1
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Lease Payoff and Private Buyer question
I know that dealers can give you a tax brake when trading in your car. This is based on the payoff amount (which combines both principal + tax).
My question will be, how can that be performed with a private buyer (if possible).
For example, suppose my payoff amount is $21,200 ($20,000 + 6% tax).
Is there any way the buyer can pay the $21,200 and then tell the DMV that the tax was already included on the payoff amount when registering the car?
In other words, can the double taxation be avoided?
thanks
My question will be, how can that be performed with a private buyer (if possible).
For example, suppose my payoff amount is $21,200 ($20,000 + 6% tax).
Is there any way the buyer can pay the $21,200 and then tell the DMV that the tax was already included on the payoff amount when registering the car?
In other words, can the double taxation be avoided?
thanks
10-14-2004, 09:41 AM
#2
In Texas tax is collected on the cash difference between trade in and new car price. If you get a 10,000 trade in on a 25,000 car tax is collected on 15,000. If you but the new car outright tax is on 25,000.
No way to apply this on a private party sale that I know of.
No way to apply this on a private party sale that I know of.
10-14-2004, 06:32 PM
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When it's a trade, the transaction is seamless because the dealer does all the figures & fills out the DMV forms. I believe(in DE anyhow) there is a limited amount of time(60 days) for you to apply for a tax credit after you pay full tax on a purchase upon the sale of your car.
10-20-2004, 04:04 PM
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Just heads up from the tax collector:
Seems that the only way is to tranfer the lease to another person, so he/she can pay it off.
But still I dont not understand why a simple payoff from the buyer will just avoid the "double taxation".
Florida law requires sales tax to be collected on the purchase price of
a motor vehicle. If it is a straight sale and does not involve a trade
in, the purchaser is required to pay the 6% sales tax of the purchase
price.
When the person visits a Tax Collector's office to transfer the
registration, a new lease agreement in his/her name will be required,
however sales tax will not be collected in the office.
Sales tax must be paid to the leasing company. He/she must contact the
leasing company in reference to the amount of sales tax due.
a motor vehicle. If it is a straight sale and does not involve a trade
in, the purchaser is required to pay the 6% sales tax of the purchase
price.
When the person visits a Tax Collector's office to transfer the
registration, a new lease agreement in his/her name will be required,
however sales tax will not be collected in the office.
Sales tax must be paid to the leasing company. He/she must contact the
leasing company in reference to the amount of sales tax due.
But still I dont not understand why a simple payoff from the buyer will just avoid the "double taxation".
10-20-2004, 05:19 PM
#5
Originally Posted by zamo
Seems that the only way is to tranfer the lease to another person, so he/she can pay it off.
But still I dont not understand why a simple payoff from the buyer will just avoid the "double taxation".
If you can work with the leasing company or dealer so that after the pay off it goes straight into the new buyers name you may be able to just pay one tax. They have done this before and know if it can be done.
Otherwise transfering the lease may be the only way to go.
10-21-2004, 08:17 AM
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Most the states in my area do not tax when you do a lease-purchase. Since you are technically a joint-owner of the vehicle & not really 'selling' it to someone.
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