Last post on Dec 02, 2013 at 5:48 PM
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#942 of 967 Does dealer pay tax on buyout
Sep 02, 2012 (10:39 pm)
I just recently had a Chrysler dealer do a payoff on my Rav 4 lease that had low miles on and quite a bit of equity (I know this is rare), I contacted Toyota and they said the dealer would have me sign buyout paperwork which they did but I'm concerned about the check Chrysler is cutting, it was for the exact amount of the car buyout but without tax, when I questioned this because I knew that I would have to pay tax if I bought it from Toyota they said that dealers are exempt from having to pay the tax. I can't get in touch with Toyota until after the holiday weekend but now I'm really questioning this. Does anyone know if a dealer has to pay tax on a lease buyout just like I would if I would have bought it? NY resident.
#943 of 967 Re: Does dealer pay tax on buyout [jenkay1]
Sep 03, 2012 (6:17 am)
Since the dealer is buying it out, they would not pay sales tax.
#944 of 967 Re: Does dealer pay tax on buyout [sebring95]
Sep 03, 2012 (7:06 am)
#945 of 967 dealer pass-through
Sep 10, 2012 (11:04 am)
I understand in some states there is dealer pass-through when you want to sell a car privately but recoup sales tax paid against the purchase of a new car. Is this true in CT? I am trying to get out of a lease, and I can sell my leased car (leased through Toyota) for about $3k more than the dealer is offering; however, I would have to pay$1700 in sales tax based on the current balance owed. It seems crazy to me (although I understadn the mechanics behind it) to pay $1700 in tax for a car that will be immediately passed to a new owner.
If I can sell it privately and NOT pay tax, I would be close to what I owe, so the thought of eating $1700 is tough to swallow - although I understand I would have swalloed that had I purchased the car originally. Thanks for any help!
#947 of 967 Lease buyout - who will loan on residual
Apr 19, 2013 (4:25 am)
Our lease is up in July & our residual for our 2010 exl is 15,525. We've had some late payments with Honda so they've told us they will not be able to provide a loan for the lease buyout.
The KBB value is well over the residual & it feels like they'd rather get the car back & resale & make the profit. Any idea who to apply for a loan with for this situation? Our score is approx 630. We live in CA. Let me know if you have additional questions.
#948 of 967 Re: Lease buyout - who will loan on residual [mrsuribe]
by kyfdx@Edmunds HOST
Apr 19, 2013 (2:32 pm)
Try your local bank or credit union..
#949 of 967 Re: Lease buyout - who will loan on residual [mrsuribe]
Apr 19, 2013 (5:36 pm)
In the future, don't have any late payments...or maybe y'all are leasing more vehicle than can be afforded. Many folks seem to do that and buy/lease something way too expensive. Better to have a less expensive model that is affordable since you are dinging your credit scores which is just plain dumb! We can afford any vehicle we want but we're smart enough to only purchase affordable one's that we can pay for all at once. We only finance if the rate is 0% or very very low. We also keep them for a long time, our Mazda is over 118k, an '05 and my '06 Civic is at the 40k point so it'll be here for a few more years, until at least 2016. Got my credit score last week and it's at 800.
#950 of 967 Selling leased Camry
Jun 05, 2013 (6:05 am)
I see someone mentioned "dealer pass through" above - can someone expound on this?
I am in VA and have a leased 2011 Camry LE coming up in July. I have a friend who wants to buy the car - ideally he would just buy the car from us through Toyota at the residual + taxes (~14.5k i believe) but I'm not sure what the best process is to accomplish this.
In addition - do I have to wait until the lease is over or could I just finish out my last payment and do it before then?
#951 of 967 Re: Selling leased Camry [the_calvin]
Jun 05, 2013 (10:11 am)
Unfortunately, YOU would have to buy the car from Toyota and then your friend buys it from you, ensuring that you both pay taxes and transfer costs both times.
Doing it through a dealer avoids the double taxes and double fees. However, dealers won't necessarily do this, at least not with some fee involved, and rightly so because it puts them on the hook for the car. They are responsible if something goes wrong and, of course, it costs them time and money to do the paperwork. They are obviously much more willing to if you are buying a car from them and your request is part of the necessary details to get the deal done.