Mazda Lease Questions...

Blake323

Hi, I'm currently in a lease right now with 21 months left and I'm looking to hopefully get out of the lease and then into a new lease for a newer car which I plan on hopefully buying once it's done. I tried going to the dealerships to see what I could get for my 2013 Mazda 3 i Sport but I would still owe around 4,500.00. What would be the steps involved with selling the car myself after paying the buyout price from the leasing company? If I found a buyer before having to pay the buyout price, how can I make sure that the buyer won't back out? Where could I get a sales contract for this type of situation?

Thank you

kyfdx

Blake323 said:

Hi, I'm currently in a lease right now with 21 months left and I'm looking to hopefully get out of the lease and then into a new lease for a newer car which I plan on hopefully buying once it's done. I tried going to the dealerships to see what I could get for my 2013 Mazda 3 i Sport but I would still owe around 4,500.00. What would be the steps involved with selling the car myself after paying the buyout price from the leasing company? If I found a buyer before having to pay the buyout price, how can I make sure that the buyer won't back out? Where could I get a sales contract for this type of situation?

Thank you

Sounds like a difficult, if not impossible task... If you buy the car, then sell to a private party, you'll have to pay sales tax, negating any savings over trading in..

I'd just keep driving it until the lease is up.

Blake323

How does the sales tax work if I leased the car though? Which amount MSRP of the vehicle or is it the buyout amount that I would need to either break even or sell under for no taxes having to be paid? I thought you only had to pay tax if you made a profit on the transaction?

kyfdx

Blake323 said:

How does the sales tax work if I leased the car though? Which amount MSRP of the vehicle or is it the buyout amount that I would need to either break even or sell under for no taxes having to be paid? I thought you only had to pay tax if you made a profit on the transaction?

When you buy the car from the bank, you'll pay tax on the buyout amount. That is sales tax. Your buyer will then have to pay sales tax again, when they buy it from you. Only dealers can avoid sales tax.

Tax on profits is for the IRS. That has nothing to do with sales tax.