Lease Buyout Beware!

Edmunds.comEdmunds.com Member, Administrator, Moderator Posts: 10,130
edited September 2015 in General
imageLease Buyout Beware!

Lease Buyout Beware! article on Edmunds.com

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Comments

  • brunelljbrunellj Member Posts: 1
    Very informative. Thanks for the information. In the end, were you able to recoup your tax payment and avoid double taxes?
  • bpc1bpc1 Member Posts: 1
    This was a helpful article but I wish Mr. Reed included more specifics. I hate to do my own digging ;)

    To wit: California State Board of Equalization Sales and Use Taxes: Exemptions and Exclusions.
    California Revenue and Taxation Code Part 1, Division 2. Publication No. 61 . LDA, Page 15:

    "VEHICLES SOLD TO LESSEE - Normally the sale of a vehicle by a lessor to a lessee is subject to tax. However, it is rebuttably presumed that if the lessee transfers the vehicle to a third party within ten days from the date the lessee acquired title from the leasor at the lease termination, the sale by the lessor is a nontaxable sale for resale, and no tax would be due for the interim ten day period."

    http://www.boe.ca.gov/pdf/pub61.pdf

    Also, I'd be interested to find out if Mr. Reed was able to recoup monies from the CA Board of Equalization?

    Thanks!
  • hudsonguyhudsonguy Member Posts: 2
    I am facing a similar situation, I have a leased VW Jetta that I want to get rid off.I live in New York state.....can anybody send some comments on How to go about????...Thanks
  • isellhondasisellhondas Issaquah WashingtonMember Posts: 20,350
    You are responsible for the remaining lease payments. t's as simple as that. Make those payments and you can walk away.
  • MichaellMichaell ColoradoModerator Posts: 183,250
    hudsonguy said:

    I am facing a similar situation, I have a leased VW Jetta that I want to get rid off.I live in New York state.....can anybody send some comments on How to go about????...Thanks

    Is this a TDI?

    I agree with isell ... you are obligated to make the payments. You can sell the car to a CarMax, but you may not get enough to cover the payoff amount (residual + sum of remaining payments, generally).

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  • ChrisSChrisS San Diego, CA Member Posts: 1
    Moral of the story is to just avoid Nissan! I'm in the middle of trying to buyout my own lease (and pay my own sales tax) but the stealerships in southern California all charge hundreds of dollars (Temecula Nissan charges $1k) to just buy out the lease. I'm about 2k miles under on the lease and the return inspection has already been completed and come back satisfactorily.

    Nissan has no oversight of their dealerships but force the transaction to be done there. Even buying it through a bank still requires you to visit a local dealer.
  • isellhondasisellhondas Issaquah WashingtonMember Posts: 20,350
    I don't understand? Just send Nissan a check for the buyout! If you are FINANCING the buyout, the dealer shouldn't need to be involved! It's a bit of a hassel but you can do this yourself!
  • kyfdxkyfdx Moderator Posts: 187,667

    I don't understand? Just send Nissan a check for the buyout! If you are FINANCING the buyout, the dealer shouldn't need to be involved! It's a bit of a hassel but you can do this yourself!

    Some captive banks won't do that. VW and Nissan are two that require you to go through the dealer.

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  • PurushPurush Member Posts: 1
    Thank you so much for this informative and life experience. The Rules and conditions are so complicated, nothing favors to the customer.
    I appreciate people like you capturing and sharing the experiences like this. Thank you once again
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