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nferrandi
too excited for words
Member since 10/05 18538 total posts
Name:
Nicole
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I need car help- anyone buyout someone elses lease?
My DH's friend leased a 2005 Honda Pilot with a baloon note. His buy out at the end of the lease is $18,000 and change. He still has 10 months left on his lease. I'm thinking of taking over his car. If I take it now (which I really need to do, my car's on its last leg) I would basically pay $363 a month and then buy it out.
I know I'm getting a good deal on the car, it's in great condition, fully loaded and 19,500 miles. But ultimately I only wanted to spend $20,000 on a truck.
Here's the question, after the monthly payments and the buy out, would I also pay tax on top of that? Would it be better to give my friend all of the money and have him buy it out and then transfer the title?
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Posted 4/23/07 9:38 PM  |
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MrsMerlot
Unconditional Love
Member since 4/06 6005 total posts
Name:
Chrissy
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Re: I need car help- anyone buyout someone elses lease?
Posted by nferrandi
My DH's friend leased a 2005 Honda Pilot with a baloon note. His buy out at the end of the lease is $18,000 and change. He still has 10 months left on his lease. I'm thinking of taking over his car. If I take it now (which I really need to do, my car's on its last leg) I would basically pay $363 a month and then buy it out.
I know I'm getting a good deal on the car, it's in great condition, fully loaded and 19,500 miles. But ultimately I only wanted to spend $20,000 on a truck.
Here's the question, after the monthly payments and the buy out, would I also pay tax on top of that? Would it be better to give my friend all of the money and have him buy it out and then transfer the title?
I finance my car, and the tax was included in my monthly payments, just call the dealership to confirm this, or ask your friend for the invoice.
I think it would be better for your friend to buy out the lease and then sell it over to you (transfer the title.)
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| Posted 4/23/07 10:09 PM |
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nferrandi
too excited for words
Member since 10/05 18538 total posts
Name:
Nicole
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Re: I need car help- anyone buyout someone elses lease?
Posted by ChrissynRicky
Posted by nferrandi
I finance my car, and the tax was included in my monthly payments, just call the dealership to confirm this, or ask your friend for the invoice.
I think it would be better for your friend to buy out the lease and then sell it over to you (transfer the title.)
But would he still have to pay tax on the buy out price? Because if so, then I'm going from $2500 over my budget to over $4000. 
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| Posted 4/23/07 10:27 PM |
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Re: I need car help- anyone buyout someone elses lease?
I'm not sure if the leasing company is obligated to continue to honor the terms of the original agreement if they are no longer dealing with the initial lessee.
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| Posted 4/23/07 10:29 PM |
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nferrandi
too excited for words
Member since 10/05 18538 total posts
Name:
Nicole
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Re: I need car help- anyone buyout someone elses lease?
Posted by ssdbk
I'm not sure if the leasing company is obligated to continue to honor the terms of the original agreement if they are no longer dealing with the initial lessee.
So in other words, he would have to buy it out himself for me to ultimately get that price.
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| Posted 4/23/07 10:30 PM |
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Re: I need car help- anyone buyout someone elses lease?
Posted by nferrandi
Posted by ssdbk
I'm not sure if the leasing company is obligated to continue to honor the terms of the original agreement if they are no longer dealing with the initial lessee.
So in other words, he would have to buy it out himself for me to ultimately get that price.
Well, I am just thinking that MIGHT be the case.
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| Posted 4/23/07 10:31 PM |
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nferrandi
too excited for words
Member since 10/05 18538 total posts
Name:
Nicole
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Re: I need car help- anyone buyout someone elses lease?
Posted by ssdbk
Posted by nferrandi
Posted by ssdbk
I'm not sure if the leasing company is obligated to continue to honor the terms of the original agreement if they are no longer dealing with the initial lessee.
So in other words, he would have to buy it out himself for me to ultimately get that price.
Well, I am just thinking that MIGHT be the case.
Would he have to pax tax on top of the $18,000? Or has that been worked into his payments?
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| Posted 4/23/07 10:36 PM |
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Re: I need car help- anyone buyout someone elses lease?
Posted by nferrandi
Posted by ssdbk
Posted by nferrandi
Posted by ssdbk
I'm not sure if the leasing company is obligated to continue to honor the terms of the original agreement if they are no longer dealing with the initial lessee.
So in other words, he would have to buy it out himself for me to ultimately get that price.
Well, I am just thinking that MIGHT be the case.
Would he have to pax tax on top of the $18,000? Or has that been worked into his payments?
I am not sure how that ordinarily works but the answer would be absolutely clear in his contract, which you should look at to make sure that you understand whatever costs are involved with the truck.
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| Posted 4/23/07 10:51 PM |
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CunningOne
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Member since 5/05 26975 total posts
Name:
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Re: I need car help- anyone buyout someone elses lease?
I asked my DH for you (he's a dealer  ). He said yes, you will pay taxes on the residual amount of the car at the end of the lease. So if your talking an $18,000 buy-out cost, you will pay the county tax on that amount.
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| Posted 4/23/07 11:20 PM |
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nferrandi
too excited for words
Member since 10/05 18538 total posts
Name:
Nicole
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Re: I need car help- anyone buyout someone elses lease?
Posted by chmlengr
I asked my DH for you (he's a dealer ). He said yes, you will pay taxes on the residual amount of the car at the end of the lease. So if your talking an $18,000 buy-out cost, you will pay the county tax on that amount.
Thanks for asking! Do you know if the residual price is negotiable?
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| Posted 4/24/07 9:24 AM |
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