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Lv 5

Okay so I have to pay taxes on a used car real story?

A friend has leased Audi A6 and the lease is ending is 60 day's.

a 3 year old car with less than 2,000 in perfect condition.

his buy out is 34K .

He has to buy it or turn it in.

does he have to title it in New York or can it be moved it in to storage in an other state, not title it. Then resell it car, to a private party.

Without having to pay New York State taxes.

3 Answers

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  • 8 years ago
    Favorite Answer

    In most states sales tax is due on the buy out price. So the lessor is going to ask for the car or payment at the end of the lease. If you buy it they will do it one of two ways, collect funds and sign over the title, then the buyer would pay taxes at the DMV when getting the title in their name. Or they collect the taxes as part of the sale, which is what dealers are required to do. And if this is leased by Audi the buyout may be handled by the dealer.

    Summary it will not work. Even if you got the title with no taxes, you have to drive or ship the car, then store for some amount per month, pay insurance, lie to the insurance company about the location so if there is a claim they may not pay, usually you can not title a car in a state without a driver's license or some proof of part time residency (snow birds in FL), and most states have sales taxes also.

    One option would be to shop it to a number of Audi dealers. If there is equity say worth 41k, you tell the Audi dealer give me 37k and you can have the car. You would need a contract saying they are paying you 3k and the lessor 34k in a bill of sale or assignment of rights. Also state if the lease is not paid off by X date they forfeit the 3k and lose the right to buy the car, makes sure they don't drag it out a few extra weeks.

    a>

  • 8 years ago

    No. The lease company is required to collect the sales tax at the time that your friend purchases the car from them at the end of his lease. Before he sells the car, he must first register it in New York, although he won't have to pay sales tax again since he already paid it through the lease company.

  • Anonymous
    8 years ago

    He might be able to assign his lease to someone else but the eventual buyer is going to have to pay sales tax unless its sold to a dealer. Needs to ask the lender.

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