So I have this car I currently lease. It's coming off lease in two months so I decided to sell it to get away from the $350 returning fee and maybe make a buck or two. The leasing company (BMW) tells me they can only title the car to me after I pay off the car. But that would make me have to pay sales tax and in turn (as I transfer the title to the new owner) make HIM pay sales tax again. I obviously don't want to have to pay for sales tax ... any ways around this?
I'm in Indiana, 6% sales tax by the way. I already researched their BMV site. Useless, as always. Don't open Mondays. Guy has the money in hand...
2007-03-12 05:29:09 · 3 answers · asked by Jcamber 2 in Cars & Transportation ➔ Buying & Selling
That's the rules... whenever title changes names, you're taxed. You have to pay taxes to get the title from BMW but doesn't mean the new owner has to...you can gift the car or write in a lower selling price so they pay less taxes. Regardless of lease or finance, you pay taxes.
I was going to suggest transfering the lease to the buyer but apparently BMW doesn't let you do that in the final 6 months and charges a $450 transfer fee.
2007-03-12 06:24:16 · answer #1 · answered by Anonymous · 0⤊ 1⤋
The ol' I want out of my lease gotcha. This is why individuals should never lease a vehicle. I hear this all the time
Get your contract out and make sure the dealer isn't trying to spook you.
Either way you have to pay for the car....Have You pay the balance and have the new buyer pay the taxes.....See if that'll work.
You may be able to apply for a refund from the state on this situation.
2007-03-12 05:59:14 · answer #2 · answered by Uncle Red 6 · 1⤊ 0⤋
you may merely positioned it as a "present" on the call, and then value him despite you have been going to. The DMV maximum in all probability wont question it when you consider which you're father and son. You dont could desire to place the perfect advertising cost on the call for a private sale, they have no way of actually checking it. And no, it isnt viewed double taxation, because of the fact they are 2 seperate sales. comparable reason a dealership can value tax on advertising used vehicles.... the "double taxation" doesnt stick to to tax on the comparable motor vehicle greater effective than as quickly as, particularly, you cant tax two times on the comparable sale or earnings. working example, if I even have money that I put in a mark downs account, that money may well be taxed from my earnings. yet they'll nonetheless tax any pastime I make on it. yet when I die and my childrens inherit it, that cant be taxed, because of the fact it already replaced into. yet then they made "inheritance tax".... so now they could, in view that's a distinctive sort of tax. boo on you, tax guy!
2016-10-02 00:05:03 · answer #3 · answered by finkle 4 · 0⤊ 0⤋