Questions about selling off a lease
04-16-2007, 11:44 AM
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Nope, when you finance the car you are the owner not the bank. All the bank is doing is holding onto the title until the lien is paid. The important thing is that the title is in your name, so YOU have the right to transfer ownership. vs. a lease where the title is in the leasing companies name, so they are the legal owner and the only one with the ability to transfer it.
Getting a dealership to act as a middleman is just a loophole worth exploring since dealers can reassign titles without tax penalty. (If you look at the back of a title you'll see several sections dedicated for this purpose.) For anyone else to transfer it, you have to get a new title, and pay tax each time.
Troy
Getting a dealership to act as a middleman is just a loophole worth exploring since dealers can reassign titles without tax penalty. (If you look at the back of a title you'll see several sections dedicated for this purpose.) For anyone else to transfer it, you have to get a new title, and pay tax each time.
Troy
04-16-2007, 11:58 AM
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oh .. thats right .. i forgot about that .. on a lease, to pay off and sell it privately .. you would have to pay taxes on the remaining balance of the car .. cuz you only paid taxes on the lease months / amount of the term of the car .. hmm .. sorry i totally forgot about that
04-16-2007, 12:02 PM
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Originally Posted by JackS,Apr 16 2007, 11:22 AM
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.
honda wasnt able to tell you how much the car would be worth after the lease? i dont see how thats possible. its the residual value.
04-16-2007, 12:27 PM
#15
Stooken- They tried to tell me but as they figured and then refigured on a little note pad the price of the car appeared to have a range.
If I insisted, they would have given me the payoff price of the car at the end of 3 years. The good deal would have been all lease payments made subtracted from the total price of the car on the day it was leased.
They seemd to have trouble coming up with this number.
I didn't insist and instead went into a buying mode.
I also began to have a feeling that they would rather lease to me then to take cash in a sale. My intuition was telling me that it was to Honda's benefit to lease not mine.
I'm not going to knock the lease, it may be a pretty good way to go for some people. The better way is to buy and make monthly payments
and know exactly where you stand. Also buying the car and knowing you will eventually own it is a much better feeling than if you leased.
If I insisted, they would have given me the payoff price of the car at the end of 3 years. The good deal would have been all lease payments made subtracted from the total price of the car on the day it was leased.
They seemd to have trouble coming up with this number.
I didn't insist and instead went into a buying mode.
I also began to have a feeling that they would rather lease to me then to take cash in a sale. My intuition was telling me that it was to Honda's benefit to lease not mine.
I'm not going to knock the lease, it may be a pretty good way to go for some people. The better way is to buy and make monthly payments
and know exactly where you stand. Also buying the car and knowing you will eventually own it is a much better feeling than if you leased.
04-16-2007, 10:07 PM
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Originally Posted by Dcon67,Apr 16 2007, 11:44 AM
Nope, when you finance the car you are the owner not the bank. All the bank is doing is holding onto the title until the lien is paid. The important thing is that the title is in your name, so YOU have the right to transfer ownership. vs. a lease where the title is in the leasing companies name, so they are the legal owner and the only one with the ability to transfer it.
Getting a dealership to act as a middleman is just a loophole worth exploring since dealers can reassign titles without tax penalty. (If you look at the back of a title you'll see several sections dedicated for this purpose.) For anyone else to transfer it, you have to get a new title, and pay tax each time.
Troy
Getting a dealership to act as a middleman is just a loophole worth exploring since dealers can reassign titles without tax penalty. (If you look at the back of a title you'll see several sections dedicated for this purpose.) For anyone else to transfer it, you have to get a new title, and pay tax each time.
Troy
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