Buying a leased Honda

[Jerryb]

My cousin drives a leased 2004 Accord EX V6. I want to buy it and the lease company says he has to buy it and pay the taxes. Then he can sell it to me and I will have to pay tax again to NY State. Sounds like NY State is the big winner. Is the leasing company right? Is there a way I can buy the car from the leasing company and only pay tax once?
Thanks

 

[JHZR2]

Lkely the used car price of a 2004 30k mile vehicle is only $1-3000 less than a brand new one.

Especially if your cousin has to buy the cr first (or you have to buy it from honda), because the price after payments for depreciation that the lease was covering, will still be really high.

Remember, tey arent going to loose any money, and recently used honda vehicles are a particularly bad value...


JMH

 

[Jerryb]

The Accord cost about $27,000 new + tax. The leased car with 45k miles is $15,500 + tax = $16,650. If I buy it after he bought it from Honda, now it's around $17,900. It'a an EX with V6. Any way to avoid paying tax twice?

 

[BearZDefect]

Ask your county clerk (or whatever the vehicle registration + tax collectors are called in NY state) if you have to pay sales tax when you purchase a car from your cousin. In some states a close family relationship between seller and buyer can exempt vehicle sales taxes.

 

[rjundi]

Quote:

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Lkely the used car price of a 2004 30k mile vehicle is only $1-3000 less than a brand new one.

JMH

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I wholeheartly disagree. I dropped my sister at a Honda/Toyota dealer I say a row 2004 Accord V6's for $17-$19k. Nothing special with regards to depreciation.

 

[Al]

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a close family relationship between seller and buyer can exempt vehicle sales taxes.

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True. I don't think that's close enough.

Now if you lived in WV; Dad/Cousin might be the same.

 

[Jerryb]

Thanks for the advice. No tax if my relative gives me the car as a gift. We're cousins but not kissin cousins. The tax is paid at the DMV in NY. They are always pleasant people to deal with in NY. The state police are friendlier.
He buys the car from Honda at $15500 + 7.5% tax = $16,662.
If I buy it after he buys it and pays tax $16662 + 7.5% tax = $17,992. I hate paying tax twice in NY. NY State makes $2,412 for allowing me to spend money.

 

[dwendt44]

Honda, if he lets it go back, will wholesale it to a dealer, who knows where. You can buy it from them at a used price; more then if you paid the double tax.
You can't win.

 

[Oldswagon]

Is it not possible to take over the lease just before the lease term is up. This way, you'd have the option to buy out? I have never leased a car before, so I am not sure, but I have seen several classified ads for people offering others to take over lease payments.

 

[thooks]

Here's how you avoid paying tax twice-

He buys it and sells it to you for $1.

He writes up a bill of sale for $1 to you for the Accord.


People do it all day long.

 

[keith]

Quote:

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Here's how you avoid paying tax twice-

He buys it and sells it to you for $1.

He writes up a bill of sale for $1 to you for the Accord.


People do it all day long.

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Not in Connecticut. You get taxed on at least the book value, or the actual purchase price if you paid over book. They fixed that loophole/scam many years ago.

 

[CBDFrontier06]

That doesn't seem fair if the car is in horrible shape. A dealership won't give you book value if the car is ragged out, but Connecticut is gonna charge you tax on book value? What a bunch of Nazis.