Dave07997S

If you don't register the car why would you have to pay taxes??

They collect the sales tax here in Ca. during registration, I don't remember if my name was on the title now. I have done this twice with BMWFS (for my 01 and 04 M3).

Dave

Alan Smithee

If the car is paid off, and PFS releases the title with my name typed on it as the buyer, I don't see any way around registering the car in my name (and paying taxes) before selling it to a third party.

No one here was able to confirm or deny PFS would release a CA title 'blank' (and PFS customer service was no help).

Paul S.

You never know what a leasing company may do, but no lessor should release a title endorsed in blank, as that is (among other things) punishible by criminal sanctions. That's not to say it isn't done, but I'm betting the folks in the title department never asked their attorneys whether they should send out titles with the transferee's name blank.

Einstein

1000$/mth x 36 mths = $36,000. Hmmmm! deal or no deal?????

daddyscar

I'm still surprised at how some of my friends still think leasing is money down the drain. It's easy to view a lease simply as renting a car for three years for a flat fee where you get nothing at the end. But depending on your needs, current money factor, residual, and term it's just another way to get a car. Assume you keep a car for three years. The fair market value of a car will likely be the same if you had bought or leased it. If you leased the car you can just return it which you'd likely do if the market value is actually less than the payoff. If there's equity in it than you could sell it yourself or trade it in to get some of the equity out of it. I tracked bmw money factors for a while. There was a time when the 335i sedan (don't like the design either) was .0014 or about 3.36% interest with something like a 60% residual. It would have been tough to find a car loan that low.

I rarely keep a car for more than three years and am not at a point where I should be using cash to be buying cars outright. That's why I always look to see if there's a lease deal first. If it's better than current finance deals and I think (completely guessing) in about 2 years I can sell it for near the buyout price, than I lease. You pay lease fees but you don't pay sales tax on the full purchase price either. Leases have some benefits.

mooty

if you are in CA, when you buy it off the lessor, you have to pay tax. when you sign over the title to the buyer, he pays tax again. that's what i was told. is that right?

Stephenkng

You will pay sale tax on the residual value of the lease car at the end of the lease if you decide to keep it. I believe you have to pay off the residual that including the sale tax before they send the title back to you. At that time you can decide to keep it or sell it. I hope this help

daddyscar

Yes. I sold my leased car to a private buyer. I didn't have to pay the sales tax on the buyout, the buyer did.

Lozzy997

Not sure why Daddyscar said yes and then completely contradicted your statement ;-)

He is correct with his statement though, although the DMV don't always know their own rules.

It's called use tax not sales tax.

I paid off a lease with a view to selling the car and the DMV charged me use tax (plus a penalty as the lessor took too much time to get me the paperwork). I was in the credit union with my buyer and they told me that was wrong, I appealed and got my money back. My buyer had to pay the use tax. I think you have 10 days to sell the car after paying off the lease to avoid the use tax.

daddyscar

That was either the second glass of port or the effect of 'the force'. George Lucas drove by a couple weeks ago in his green s55 (older body, must be time for a new star wars special edition dvd). I swear the original message read, "if you are in CA, when you buy it off the lessor, you don't pay tax. when you sign over the title to the buyer, he pays tax.'. : )

Dave07997S

I sold 2 M3's this way without paying sales tax here in Ca. with no detrimental effect from the State's FTB.

Dave