Lease buyout / flip

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04-04-2013, 08:41 AM

#11

~~DrGP~~

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Quote:

Originally Posted by igord

did this in 2005, had the buyer ready, he cut the check to afs, transfered title within 2 days of sale, in California there is (or at least was) a period of 5 days where you could buy out and resell without having to pay tax yourself, the new owner had to though (however only on the buyout amount).

Completley different rules in CA. You can buy the car and not pay a second sales tax if you sell within 15 days. Don't think other states have the same rules.

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04-04-2013, 08:52 AM

#12

uberwgn

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Quote:

Originally Posted by codog11

I will likely give him the money and when he gets he title sign it over to me. Not sure how it works in Massachusetts but I don't believe you pay sales tax unless you register the car

It doesn't work like that in MA and I speak from first hand experience when attempting the same.

They (Audi/VW) can ONLY transfer the car to the person leasing the car. It can't be transferred to a third party. You can't just sign the title over.

The person leasing the vehicle will have to fully title and register and pay sales tax before the next transfer takes place.

Audi/VW takes the position that they become a used car dealer if permitted to transfer the vehicle directly to a third party. I suspect this will be the case in many states and not just MA. Audi/VW is not structured to act as a used car dealer.

(I attempted to direct my off-lease car to a co-worker's son a few years ago but it wasn't going to happen once we started factoring in my requirements of titling/sales tax, etc.)