AJP97

I have a buyer for my car and need some advice. I currently lease through chase and I live in KY. The buyer lives in GA. If I have chase send the title directly to him in GA my ayoff goes up about $1615. They say it is for taxes. My question is if I have them send the title to me and then sign it over to him will I have to pay taxes in addition to him paying taxes or will both of us not have to pay any tax. Any suggestions would help in terms of finding an option that will save us both money. Thanks.

fuzzy02CLS

iTrader: (2)

Your buyout has the tax included. You will not need to pay anything else if you pay it off & get the title yourself & sign it over. I don't know why they raise it if you get the title sent to the new owner. That doesn't sound right. Unless they are treating it like a lease takeover by the new owner & adjusting the payoff amount to reflect the higher tax rate in his area.

NSXNEXT

iTrader: (2)

He needs to pay the sales tax on the vehicle, since he is buying it from you/your leasing company. That's all it is.

Regardless of how you work it, he will still owe the $1615 as a result of the sale (sales tax).

The title needs to go to him, if you take ownership of title, not only will you pay the sales tax, but he will as well. When you take ownership of title, you are buying the car from the leasing company. Taxes are due on the sale.

If you allow him to take ownership of the car from the title company (assuming they will let you do this) he is the only one that has to pay sales tax.

fuzzy02CLS

iTrader: (2)

Right the new owner will need to pay tax on the car in his state whatever rate that is. That must be what they are doing, adding it to the cost if they send him the title.

AJP97

Thanks for the replies. I talked to my local DMVand they said when I get the title I can apply for a speedy title. (assuming the title chase sends me has their name on it an d is simply signed over to me). Then take the speedy title and sign it over to the new owner. This way I would have to pay no sales tax. The part I don't understand is that the sales tax is 5% for the new buyer. My payoff is approx: $23085, if you take 5% of that it is not even close to the $1615 they quoted me. So it may be better to have the title sent to me, sign it over to him, he can register the car and say he bought it for $15,000 and just pay tax on that right?

zamo

https://acurazine.com/forums/showthr...ghlight=payoff

quoting from a reply i got from the DMV

The lease company needs to change the title to his name, and get the payoff. I am not sure how is that done. The quote implies there is no need to pay DOUBLE tax.

clorich

In many parts of GA, sales tax is 7%. 23085*.07=1615.95

AJP97

This info is very helpful, thanks. The purchaser is going to be buying it not leasing it. I just want to have the purchaser to get some tax help if possible. the only way i can see that being possible is if I have the title sent to me. Otherwise he will have to pay the sales tax upfront.

zamo

AJP97, it seems that the only way to avoid the DOUBLE tax is to contact the leasing company and ask them how can a buyer make the payoff amount of the car and get the title transfered to his name.

Double sales tax SHOULD NOT be charged.

AJP97

The leasing company will send the title directly to the buyer. I just want to try and save him some money. i thought by me getting the title first that may help, but it seems it would easiest to just have them take care of all of it.

Chopsie

Adam, Did he buy the car ?

Chopsie

?????

zamo

AJP97, an update will be helpful. Thanks.

Shoofin

See if Chase has what's called an "early termination" payoff. Certain banks have that, I don't know if Chase would though. The early term payoff is usually not as high as a standard payoff..Don't ask why though, cuz I don't know!

zamo

never heard of such a thing

Shoofin

I'm doing one right now with Infiniti Financial Services for an FX buyout, this way the payoff is as close to net-worth of the car, so the lessee has a little money to put out of pocket as a penalty for the difference. Like I said, I'm not sure who has it, but IFS most certainly does. I'm waiting for them to send me a letter in the mail with the payoff amount, for some reason they couldn't give it to me over the phone...
Ed

zamo

I will really like to know the specifics if what you are saying is true.

What I know is that some leases can have an adquisition fee at lease end. Possibly the lease company can give you a break on that. But to reduce the buyot price of the car? I will say Why? Because thats the total liability of the lessee brought to the present.

Chopsie

Update:
APJ's car is sold.

zamo

Good. Do you know if he did transfer the title without having the seller to buy additional tax?

Shoofin

The fee at the end of the lease is call the disposition fee, or termination fee. Most banks would waive that fee if you get into another car using that same bank, but then the next time around you'd have to pay it, unless you get another car using the same bank again. Banks that I can tell you off the top of my head that has it would be HANN, Chase(3rd party), Daimler Chrysler Financial Service, BMW Financial Services, Volvo Finance, Audi Financial, Porsche Financial, Mini Financial, VW Financial, Jaguar (I think) and Land Rover Capital (I think). The ones I didn't mention do not have dispo fees. In addition, Should you choose to buy the car, some banks also charge a one time fee ($$ varies) which I guess covers the documentation processing on their end. It's usually $250 or so.
I'll let you know how it works out with that Infiniti...

Shoofin

The only price you'll see on a contract is the residual value, or buy back if you decide to buy the car after the lease. Let's say that the residual value is high on a car through the bank and in the used car market: Figure the payoff would be 34,000, and the market for the car used is $33,000. There's a minimal spread of $1,000 between the two, and if a person really wanted out of the car, it's not so bad. I know someone who leased a G35 Coupe 6MT for 24 mos. 8 mos down the line he wants out. He called the bank, they gave him the early termination payoff, which actually came out lower than the buy back for the car, so he ended up getting out of the car without paying a dime, and the wholesaler got the car for let's say should have been 32,000(what it's worth) for 29,000(what the bank wanted for it), so he was 3,000 ahead of the game, and was able to flip it and resell it at a higher profit margin.

AJP97

Hello, sorry for not giving an update sooner. Well what i did was have Chase send the title to me instead of directly to him. The title has Chase on it and they signed it over to me. Now I either am going to do a speed title in my name and then send it to the new owner or I may sign the title, fill out the back section and send it to the new owner. Again I do not know how this is going work out because I don't want to have to pay taxes. On the back of the title where they have signed it to me, below that it has another section where it looks like I can then fill ou my information and the new owner's and then have him sign it without having to put the car in my name first. This shit is tricky, but it is better than getting screwed by all of these dealers giving low ball offers. If anyone has any idea of what I should do that would be great. I am going to the DMV tomorrow so I will let everyone know what happens.

zamo

Yes you can have a lower buyout price than the market value of the car and that is the last case you are specifying.

This only happens when you have paid more than the depreciation, usually when you have made a big down payments (which is non-sense for a lease).

zamo

Kepp us updated plz. Thanks.