Getting off the leasing merry go-round

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04-09-15, 07:42 AM

#61

SW17LS

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Quote:

Originally Posted by wasjr

Yes. Anybody can buy the car, I've traded in leased cars many times, and my Dad's company bought his 98 LS400 after his original lease and gave it to him as a company car.

One thing to look out for...some leasing companies charge dealers or somebody else more to buy the lease out than they charge you. Ally is such a company, I just went through this trading my Jeep lease a couple days ago. TFS/LFS does not do that.

Quote:

I have a buddy who will be coming off a lease of a 2013 GS in August and I may be interested in the vehicle. How do we get around his paying 7%+ in sales tax on the purchase at residual value, and then me paying 7%+ sales tax when I buy it from him? Basically double taxation.

Do you live in a state where you pay sales tax on the whole purchase price when you lease or only on the lease payments?

If its like MD, I paid full sales tax when I leased the car, so if I buy it out of the lease I don't pay any sales tax. If someone other than me buys it...they pay sales tax. If he buys it and you buy it from him...you're both going to pay sales tax. So, you should buy it from the leasing company directly.

04-09-15, 09:00 AM

#62

bitkahuna

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Quote:

Originally Posted by bagwell

or if you put down let's say $3000 (definitely a no-no) with monthly payments ...

i see tons of lease 'deals' which all say "$3499 due at lease signing" or some other huge amount.

04-09-15, 10:02 AM

#63

4TehNguyen

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Quote:

Originally Posted by wasjr

So you are saying that LF will let someone other than the lessee buy the car at the residual value? Have you done this before with LF? Does LF collect sales tax in the purchase transaction? How does the documentation work?

I have a buddy who will be coming off a lease of a 2013 GS in August and I may be interested in the vehicle. How do we get around his paying 7%+ in sales tax on the purchase at residual value, and then me paying 7%+ sales tax when I buy it from him? Basically double taxation.

Sure why not? Its called a lease buyout transfer. LF either wants the car back or the buyout money.

So if you happen to have a car that depreciated at a lower rate than what was predicted for the leaseterm then you could sell the car for the market value which is higher than the buyout. So what happens if the cars value is worth more than the buyout, you sell the car elsewhere, pay LF the buyout price and you pocket the extra money. If you had a car that was worth more than the buyout price, youd be crazy just to give it back to the dealer. Then the dealer makes a fat *** profit at your expense. When the Prius was a really hot car in the mid 2000s due to oil prices, the used price on them stayed pretty high, higher than what the lease predicted. So people just turned the car in to carmax, gave the dealer the buyout money and pocketed the difference.

I dont think youll be able to get away from the sales tax doing that.

04-10-15, 08:15 PM

#64

dseag2

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Quote:

Originally Posted by SW13GS

It will eventually show up on your credit report, they just haven't started reporting the new account.

A lease shows up as an installment loan with the balance being the total of the payments. No different than a finance loan.

You're right. It's there now. My score went up because I used the equity returned from my financed GS350 to pay off my credit card bills.