Questions about selling off a lease
04-16-2007, 08:09 AM
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Questions about selling off a lease
My lease is nowhere near being up. I'm thinking about completely selling the car off and getting something else.
So here's where I'm a bit confused. Say I sell it and the other person cuts a check to pay off the car. I heard that the title would come home under my name first. I'd have to pay taxes, fees and etc on it. Then after I sell it, the new owner would have to repay those taxes, fees and etc.
Is this true?
If so, any way to avoid paying anything on my end? I'm already transferring title to another person, I don't see why I have to pay anything.
So here's where I'm a bit confused. Say I sell it and the other person cuts a check to pay off the car. I heard that the title would come home under my name first. I'd have to pay taxes, fees and etc on it. Then after I sell it, the new owner would have to repay those taxes, fees and etc.
Is this true?
If so, any way to avoid paying anything on my end? I'm already transferring title to another person, I don't see why I have to pay anything.
04-16-2007, 08:25 AM
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well, you can have someone assume the lease and just pay the transfer fee .. depending on state or dealership
but selling a car to someone either a lease or financed .. you wouldn't have to pay for any taxes .. not that i know of in NY .. the new owner would pay for taxes and thats it
as long as you sign over the title and get a lien release, then the new owner can then re-register your sold car
but you should find out how much is still left on your car and see if you would be upside down meaning your payoff is higher than price ask for your car .. those you would have to pay to get the lien release .. maybe those are the " fees " you were mentioning ?
but selling a car to someone either a lease or financed .. you wouldn't have to pay for any taxes .. not that i know of in NY .. the new owner would pay for taxes and thats it
as long as you sign over the title and get a lien release, then the new owner can then re-register your sold car
but you should find out how much is still left on your car and see if you would be upside down meaning your payoff is higher than price ask for your car .. those you would have to pay to get the lien release .. maybe those are the " fees " you were mentioning ?
04-16-2007, 08:31 AM
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this was my first option but i was under the impression that i would still be held liable with AHFC even on a lease transfer. i'll try calling them to make sure but from what i've read on the board, that seems to be the consensus.
i'll probably be upside down $1-$2k. my payoff is around $28xxx and KBB lists it at $27k.
i'll probably be upside down $1-$2k. my payoff is around $28xxx and KBB lists it at $27k.
04-16-2007, 08:55 AM
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Originally Posted by tsw910,Apr 16 2007, 08:48 AM
maybe other states are different .. but in NY .. the seller doens't have any fees or taxes
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04-16-2007, 10:14 AM
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When you lease a car it's owned by the leasing company. The title, and in many states the registration is in their name. You're essentially just renting it from them.
So in order for you to sell the car, you first have to purchase it...which would require you to pay at a minimum tax and title fees. That's unless the lease company is willing transfer title directly to whomever you're selling it to. In my experience, most lease companies won't do that. They'll only sell it to either the Lessee, or a dealer.
Assuming you're planning on replacing it with some other kind of car, you can use that as leverage with a dealership by basically making it condition of the purchase that they broker the resale of your lease for you. Have your buyer give the dealership the payment, they pay it off and get the title, and then they can do a dealer assignment on the title to your buyer. You could probably get a dealer to do it without purchasing a car too, but they'll likely want some kind of compensation to do so.
Good luck!
So in order for you to sell the car, you first have to purchase it...which would require you to pay at a minimum tax and title fees. That's unless the lease company is willing transfer title directly to whomever you're selling it to. In my experience, most lease companies won't do that. They'll only sell it to either the Lessee, or a dealer.
Assuming you're planning on replacing it with some other kind of car, you can use that as leverage with a dealership by basically making it condition of the purchase that they broker the resale of your lease for you. Have your buyer give the dealership the payment, they pay it off and get the title, and then they can do a dealer assignment on the title to your buyer. You could probably get a dealer to do it without purchasing a car too, but they'll likely want some kind of compensation to do so.
Good luck!
04-16-2007, 11:01 AM
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Originally Posted by Dcon67,Apr 16 2007, 10:14 AM
When you lease a car it's owned by the leasing company. The title, and in many states the registration is in their name. You're essentially just renting it from them.
So in order for you to sell the car, you first have to purchase it...which would require you to pay at a minimum tax and title fees. That's unless the lease company is willing transfer title directly to whomever you're selling it to. In my experience, most lease companies won't do that. They'll only sell it to either the Lessee, or a dealer.
Assuming you're planning on replacing it with some other kind of car, you can use that as leverage with a dealership by basically making it condition of the purchase that they broker the resale of your lease for you. Have your buyer give the dealership the payment, they pay it off and get the title, and then they can do a dealer assignment on the title to your buyer. You could probably get a dealer to do it without purchasing a car too, but they'll likely want some kind of compensation to do so.
Good luck!
So in order for you to sell the car, you first have to purchase it...which would require you to pay at a minimum tax and title fees. That's unless the lease company is willing transfer title directly to whomever you're selling it to. In my experience, most lease companies won't do that. They'll only sell it to either the Lessee, or a dealer.
Assuming you're planning on replacing it with some other kind of car, you can use that as leverage with a dealership by basically making it condition of the purchase that they broker the resale of your lease for you. Have your buyer give the dealership the payment, they pay it off and get the title, and then they can do a dealer assignment on the title to your buyer. You could probably get a dealer to do it without purchasing a car too, but they'll likely want some kind of compensation to do so.
Good luck!
how exactly does it work when the dealership brokers the sale of the lease for me? it seems like they are just acting on my behalf so that i dont have to pay taxes and title fees. do they buy the car off of me and resale it? i'll definitely keep this option in mind when purchasing my next car
04-16-2007, 11:22 AM
#10
Hope someone can give you an answer. Off the top of my head, I think if you can get out from under the lease owing nothing ,your actually ahead. You can then count the monthly payments as rental fees.
I came close to leasing before finally deciding to buy and pay cash. The lease deal as explained to me at the time and with some incentives looked to be very close to the cash deal.
To my mind, it was my failure to completly understand all the terms which prompted me into the buy rather than lease deal. The thing that really pushed me out of the lease was a seeming inability by Honda to give me an exact price the car would be worth at the end of the lease. I expect that is the situation your in now. If Honda would allow you to buy the car minus the lease payments made to date, this might be in your favor. On the other hand you would probably owe taxes on the full value of the car on the date it was sold. This could push you into a loss column.
Unless you can find someone that you trust and can tell you that you will break even or make a few bucks, I'd try to just break even.
I came close to leasing before finally deciding to buy and pay cash. The lease deal as explained to me at the time and with some incentives looked to be very close to the cash deal.
To my mind, it was my failure to completly understand all the terms which prompted me into the buy rather than lease deal. The thing that really pushed me out of the lease was a seeming inability by Honda to give me an exact price the car would be worth at the end of the lease. I expect that is the situation your in now. If Honda would allow you to buy the car minus the lease payments made to date, this might be in your favor. On the other hand you would probably owe taxes on the full value of the car on the date it was sold. This could push you into a loss column.
Unless you can find someone that you trust and can tell you that you will break even or make a few bucks, I'd try to just break even.