t's a Lexus rx300 with 46300 miles...it's been leased since 2003. would also know what the price should be on a leased car? Is there a way we can get out of paying sales taxes twice?
2006-11-01 04:13:58 · 4 answers · asked by ell 1 in Cars & Transportation ➔ Buying & Selling
You won't pay sales tax twice. She paid sales tax only on the portion of the lease that she used, if you buy it you'll pay for the sales tax on what is called the residual value of the vehicle.
(ie if the car was originally 36000, and the residual value is 25000)
Your daughter would have paid sales tax on 36000-25000 =11000 (she would have paid the sales tax on 11000)
If you purchase the car at the residual value of 25000, you pay the sales tax on the 25000.
To purchase her lease, look at the lease agreement. The price to purchase her leased vehicle is called the residual value. The price the dealer gives should be close to that residual value if they don't take it back and have to inspect and re-prep the vehicle.
If they take it back they will charge dealer fees, prep fees, etc...
Most likely the dealership will want to make some money, so the price may be slightly higher than the residual value, but shouldn't be significantly higher than that. (Any price that is higher than the residual value is profit for the dealership/bank, so you don't want to pay a signficant amount over the residual value or your daughter got ripped off in her lease, which is based on the original cost - residual value (what the car is worth at the end of the lease))
And for people who say not to lease a vehicle, it shows their ignorance in understanding how a lease works. These are the same people who are typically upside down (when it comes to financing) in their car.
2006-11-01 04:24:49 · answer #1 · answered by hsueh010 7 · 1⤊ 0⤋
The dealer was negligent in not telling you need collision unless you posted a surety bond. No reputable dealer will finance a car without the buyer having collision and comprehensive insurance. But, ultimately it was your responsibility to protect yourself. You really should have refused the rental car and not let them keep your car for something cosmetic. You should have told them you will bring the car back the next day or when it was convenient for you. Any, I'm sorry to say that the lawyer is lying. If you really had a strong case the lawyer would have taken the case on contingency because the dealer would have had to pay their fee if they lost. And it probably would have been settled out of court. As to your present problem with the $10,000. They have 3 years to demand money. Since it was a rental car, they are allowed to collect not only the damage but lost revenue while the car is out of service. So you need to pay for lost revenue from the time the car was damaged to the time it was fixed and able to be rented again. This is standard and nothing new. THIS IS YOUR BEST BET: Call every TV station or look on their websites and ask if they have a consumer advocate that would consider helping you. In my area, Channel 8 has "Eight on Your Side". If they accept your "case" they will most certainly be able to help you reduce the amount or even get the dealer to forgot about the debt because the dealer does not want the negative publicity. I wish you well. Here's what I would do if the media won't help: Ask for a copy of the repair order. If it's under $10,000 then ask why they are asking for $10,000. If they claim "lost use" then ask for the rental log for the past 2 years or when it was first put into service as a rental. The bottom line is unless you get someone to fight for you you might owe the entire amount.
2016-05-23 03:06:32 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Call the bank and ask what the payoff amount is. It's different than the Residual Value (which is what it's worth at the END of the lease).
Then check kbb.com to see what its current Blue Book value is.... it will most definately be upside down.
Do you live in IL or TX? Because I know they pay tax on the entire cost of the car rather than the pay as you go payments.
You can choose to buy the car by paying the payoff amount or take over her lease contract and keep making monthly payments.
2006-11-01 04:37:16 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Dont get a lease it is a big waist of money! buy her a car. how about a scion tc? they start at 16k and come fully loaded. check out link below!!
http://scion.com/showroom/tc/gallery/index.html
2006-11-01 04:21:15 · answer #4 · answered by Anonymous · 0⤊ 0⤋