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Smart Shopper Smart Shopper-Archives Any Questions for a Car Dealer? 
16377 messages, Last post on Feb 11, 2006 at 4:59 AM
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Ok, guess I started this whole tax mess with my original question about an "in and out."  So, here's some clarification on my situation and intent. Here in MO (Missouri), you don't pay sales tax up front on a lease but rather on each monthly payment. That means no tax has been collected on the end-of-lease residual value of the vehicle. As a result, if you buy your own car off lease, you DO owe sales tax on the purchase price, and you DO have to register it, and pay, to get the clean title in order to sell it. Assume with me that the car in question is worth a couple grand more than the lease residual value. My original question DID ask if I could avoid paying sales tax by having a dealer do an in and out. My intent was to pay the dealer for the trouble. After both you guys and an in-person dealer telling me that's not likely, I fully accepted that it wouldn't happen, and I understand why. My follow up idea is/was this - since the car is still worth more than the lease-end purchase price, I should be able to make some money. Would a used-car guy at a dealership ever just buy the car from me? In other words, walk into a local Nissan store, find the UC guy and ask what he'd give me for the car. Then, assuming it's more than the buy-out price, accept his offer, he'd pay off Nissan and cut me a check for the difference (for ex.: buyout $13K, car private party value $15K (dealer retail maybe $15.5K?), dealer buys from me for $14 K, I make $1K, dealer can still retail the car, making $1.5K less expenses). Seems to boil down to: do dealers ever just buy cars from guys off the street? Interested to get all your thoughts. Squirrel
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Replying to: squirreljam (Jan 23, 2006 12:41 pm) I'm not a dealer. Yes dealers buy cars from guys off the street every day. But it has to be worth their while. I think $1.5K may not be enough for most. |
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Replying to: squirreljam (Jan 23, 2006 12:41 pm) Carmax does exactly that. |
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Since the dealer does not have to pay sales tax when they (effectively) buy out your lease, it would avoid the big tax hit on you if you did it all yourself. I do know one person that lucked out and had her lease vehicle worth quite a bit more than the residual (timed the SUV craze right). So, she was able to trade it in on a new one, and applied the positive equity. But, I bet it doesn't actually happen that often.
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Replying to: stickguy (Jan 23, 2006 1:36 pm)  . It has 21K miles on it and he had $1000 positive equity on a $13K residual. Very very rare tho.
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Replying to: kdhspyder (Jan 23, 2006 3:17 pm) My BIL has had positive equity applied to his last 2 leases, trading in an Integra and a Accord EX V6 coupe - both leased thru Honda dealership financing. |
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I am going to be looking for a certified pre-owned car in a couple months. Probably Volvo or Acura. As many (if not most) of these vehicles have come off lease, but their advertised prices are usually set at full retail...is there any way to research what the original lease residual was on any particular vehicle? It's easy to figure out what the term of the lease was from the Carfax reports. An estimate of the (then) MSRP shouldn't be too difficult either. If I could estimate what the residual was, I would then know what the dealer paid for the vehicle and would have an idea if there was any reasonable room to negotiate.
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Replying to: allplastics (Jan 23, 2006 5:05 pm) Keep in mind.. the dealers don't necessarily pay the residual price.. especially, if it were set artificially high at the time of the lease.. A lot of lease returns go through the auction, and the dealers buy them at the market wholesale price.. This is a number that is much more useful... You only need that lease residual number, if you are looking to buy the car from the lessee... regards, kyfdx Host-Prices Paid Forums
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I have a 05 JGC that is a lemon. I have contacted Diamler Chrysler concerning this matter and they have yet to respond. BY law in Arkansas they have to respond within 10 days of receiving my certified letter. I now can demand a refund or replacement. But, really unsure of who contact for the refund or replacement b/c all I get are customer reps who are really not that helpful. What is the fastest way to get this matter resolved?
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Replying to: ashlea (Jan 23, 2006 6:39 pm) |
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