leasing question

[armymp1130]

i am currently leasing my truck and my father wants to buy it which works out cause i found another truck i like but my question is im only 6 months into my 42 month lease so would i have to buy my lease pay sales tax and then sell to him and he pays sales tax? asking anyone whos sol their lease early before

 

[Dave07]

It might be cheaper/easier if you transferred the lease to him and then he could buy it out. Who is your leasing company?


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[slatersan]

Just have him make the payoff.

 

[armymp1130]

leasing company is chrysler capitol and if he just pays the payoff only hell have to pay sales tax?

 

[troutspinner]

I’d recommend calling your leasing company. Only they can tell you the real answer.

 

[jdefoe0424]

I believe most states have provisions for transferring titles between immediate family members and you can exempt the transaction from the sales tax. Just something to look into.
But I have not had a lease before so I'm not sure what your best course of action may be.

 

[jth877]

You have to call the leasing company. They all have different rules and fees.

It might be best to transfer the lease to him barring any outrageous fees. He would save sales tax on whatever is owed beyond the buyout. It also would give him an "out" if he waited until the end of the lease to buy in case the truck ends up getting hit severely and not totalled or just ends up being a turd.

Chrysler Capital also has the free PDR attached to its leases. So he would keep that and it might come in handy.

 

[nburd]

My last deal with Chrysler Cap on a Ram was you (the Leasee only) can buy it (your name only, whatever is on the lease), and must pay local sales tax, then you have to sell it to him and he has to pay tax again. That's why I did not buy out my last Ram. Double Tax was foolish. They will not title in anyone's name but the leasee.

 

[jth877]

My last deal with Chrysler Cap on a Ram was you (the Leasee only) can buy it (your name only, whatever is on the lease), and must pay local sales tax, then you have to sell it to him and he has to pay tax again. That's why I did not buy out my last Ram. Double Tax was foolish. They will not title in anyone's name but the leasee.

I'm pretty sure he's saying you can transfer the lease agreement to the Dad. You can do that (at least in NY).

Then the Dad buys it out at the end.

 

[jdmartin]

i am currently leasing my truck and my father wants to buy it which works out cause i found another truck i like but my question is im only 6 months into my 42 month lease so would i have to buy my lease pay sales tax and then sell to him and he pays sales tax? asking anyone whos sol their lease early before

It depends on your state. Most states will let a reseller carry the sales tax and pass it on to the next buyer since they are not retitling it in their name. I have leased a few trucks in my state. Last one I leased I ran a title search on it after I turned it in at lease end and it was auctioned; I was willing to buy it at the end of the lease but the balloon was taller than I could buy another one just like it private market with less miles, so I let it go back. Anyway, the title search ran a straight chain from me to the next buyer without Nissan USA or my local dealer in the chain of title at all. I'm sure the new buyer paid the sales tax on the balloon.

In your case, you are going private to private, so unless you have a gift form you can fill out your father will also have to pay the sales tax unless you can get creative - for example, adding him onto the current title, paying it off, then having your name removed from the title.