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      09-24-2020, 06:44 PM   #1
over5teer46
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Early lease buy out

Evening everyone,

My buddy wants to buy out my lease, 2018 M3 Comp pack which ends in April of 2021.
Is this possible and if yes how PITA is this gonna be?
I will just give to Vroom if it is.

Thanks.
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      09-24-2020, 10:39 PM   #2
jeepin29
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Transfer the lease to them and then let them navigate the buyout process.
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      09-25-2020, 12:53 PM   #3
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He'd have to get the payoff quote (available in his account page online) and pay BMW that amount.
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      10-04-2020, 10:55 AM   #4
trendy26
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What you want to do is have a dealer broker the sale. If your friend wants to purchase the car from you, you would need to buy it out first form BMW, of which you would pay sales tax on, then would sell to your friend, who would then pay sales tax on the purchase price from you.

By going through a dealer, the dealer buys the car form BMW (tax free) then sells it to your friend at your buyout price. It'll cost about $500 or so for the dealers time and such, but you save thousands over having to pay the sales tax as a result of buying the car straight from BMW
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      10-09-2020, 10:06 AM   #5
Thescout13
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Quote:
Originally Posted by nickl630 View Post
He'd have to get the payoff quote (available in his account page online) and pay BMW that amount.
It's not that simple if he isn't a dealer. Only dealers can buy out a lease at the payoff without having to pay taxes. If his buddy wants to buy it there are two options:

1. He can assume the lease then pay the payoff and pay the taxes when he pays the payoff.
2. Original leasee pays the payoff and taxes, registers the car, then sells to his buddy.

Also third option noted above.
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      10-11-2020, 08:48 PM   #6
AlterZgo
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There was a lot of wrong info when this came up in the past. It really depends on the laws of your state. In California, your friend can payoff the lease and you can sign the title over to him without paying sales taxes if the transfer is done within 10 days. Your friend would obviously have to pay the sales tax when he registers his car with the DMV. People went crazy on me in this forum when I said I did exactly this and there were no issues whatsoever with CA DMV. Of course you’d have to check the specific laws in New York for your situation.

Bottom line is, don’t believe the internet as there was just plain wrong info being pushed... don’t even believe what I’m saying. Use these forums as a resource and just check directly with your local DMV.
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      10-11-2020, 09:00 PM   #7
AlterZgo
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Before people from California go crazy on me again and post erroneous info, here it is from the California DMV website:

Leased Vehicles (CR&TC §6277)—When the lessee buys the vehicle from the lessor:
  • At the end of the lease agreement, use tax is due on the balance owed.
  • And sells it to a third party within 10 days from the date the lessee acquired title from the lessor, use tax is due only from the third party.
  • And sells it to a third party after 10 days from the date the lessee acquired title from the lessor, use tax is due from the lessee and the third party
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      10-11-2020, 09:32 PM   #8
Thescout13
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Quote:
Originally Posted by AlterZgo View Post
There was a lot of wrong info when this came up in the past. It really depends on the laws of your state. In California, your friend can payoff the lease and you can sign the title over to him without paying sales taxes if the transfer is done within 10 days. Your friend would obviously have to pay the sales tax when he registers his car with the DMV. People went crazy on me in this forum when I said I did exactly this and there were no issues whatsoever with CA DMV. Of course you'd have to check the specific laws in New York for your situation.

Bottom line is, don't believe the internet as there was just plain wrong info being pushed... don't even believe what I'm saying. Use these forums as a resource and just check directly with your local DMV.
Good call, in CA there is this exception.
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      10-12-2020, 08:17 AM   #9
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FYI, I moved from NJ to NY one year into my lease. All my taxes were rolled into the payment on my 340 and I was paying 650 with nothing out of pocket.

When registering the car in NY I had to pay tax on 650*24*8.8875% in tax to NY.

So if transferring the lease to a friend then that friend will have to pay tax on your remaining payments.
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