Auto financing-type question re: 3rd party buying out lease.

[sundevil777 93]

Before I ask the dealer's finance people, I was hoping someone with actual knowledge of what is possible could educate me.

The situation is that I'd like to buy (with a loan) my son's leased car (Honda) when it comes available-as he turns it in at the end of the lease. I'd of course like to buy it at the residual value per the contract. Simple enough it sounds but I want to buy it without my son actually having to buy it first, my thought is that we'd have to pay sales tax twice if I buy it after my son buys it.

Am I correct that the dealership can't allow my son's lease car to be "bought out" at the end of the lease by anyone but the leasee, and so therefore I'd be paying sales tax twice? Maybe I'm not even realizing what other cost I'm trying to avoid, but I hope someone knowledgeable can help me get my plan settled before I ask the dealership about it. Of course I realize this would not be an issue if I used cash instead.

Thanks for your help.

People are sick and tired of being told that ordinary and decent people are fed up in this country with being sick and tired. I’m certainly not, and I’m sick and tired of being told that I am

[airdvr 197]

Can you get a copy of the lease contract? I'm sure there's verbiage that addresses this situation.

Please don't dent the planet.

Destinations by Roxanne

[sundevil777 93]

I'm figuring that the lease agreement specifically does not allow it, but that it doesn't actually limit what is allowed by state law. I think I've found an authoritative source that says it can be done, as long as you get the 3rd party buyout arranged beforehand (questions 715)

http://www.tax.ohio.gov/faq/tabid/6315/Default.aspx?QuestionID=515&AFMID=11354

So...nothing to be seen here, thanks, sorry for the bother.

People are sick and tired of being told that ordinary and decent people are fed up in this country with being sick and tired. I’m certainly not, and I’m sick and tired of being told that I am

[airdvr 197]

Cool. Looks like you can. The next question is should you? If you want I have access to databases that show what dealers are paying for vehicles at auction. PM the details and I'll see what I get...just sayin'.

Please don't dent the planet.

Destinations by Roxanne

[sundevil777 93]

Iago

Here's an alternate solution:

Your son turns in the car at the end of lease like normal.

You then negotiate a completely separate transaction to buy the car.

I mention this because residual value buyouts for leases tend to be shitty deals for the buyer.

Like the other guy said, knowing what they will get paid at auction is your price point.

Oh, and keep everything separate. I mean you walk in an hour later and say 'hey I saw that guy just drop off a blank. Is it for sale?'

The residual value for the 2015 Civic LX 4-door is 11,800. I think this is an attractive price, and definitely less than they would advertise for such a model year civic after it went through their process. I also like the idea of knowing the history of the car, how it was treated, etc.

People are sick and tired of being told that ordinary and decent people are fed up in this country with being sick and tired. I’m certainly not, and I’m sick and tired of being told that I am

[Phillbo 11]

I'm not sure what state you live in but from your screen name I assume Az. If so, there is no sales tax on a personal sale. Have your Son buy it and sell it to you.

[sundevil777 93]

Ohio resident, roots are in AZ. Unfortunately there is sales tax for personal sale of a vehicle.

People are sick and tired of being told that ordinary and decent people are fed up in this country with being sick and tired. I’m certainly not, and I’m sick and tired of being told that I am