Caty
Back in January, my parents leased me and car and it is currently in my dads name. I got in a huge fight with them and they are trying to take back my car before the lease is up. Is there anyway that I can get the lease in my name so this doesn't happen? I am 25 with decent credit
Answer
I hate to say this, but it is not your car. You have absolutely no legal rights to this vehicle. If they want it back, there is nothing you can do about it.
There is no way to transfer a loan (or a lease). Your parents would have to sell you the car (for the total of the remaining payments, plus the residual value of the vehicle). If you cannot pay cash, you would have to apply for a loan, and be approved.
Sorry I don't have better news.
I hate to say this, but it is not your car. You have absolutely no legal rights to this vehicle. If they want it back, there is nothing you can do about it.
There is no way to transfer a loan (or a lease). Your parents would have to sell you the car (for the total of the remaining payments, plus the residual value of the vehicle). If you cannot pay cash, you would have to apply for a loan, and be approved.
Sorry I don't have better news.
How to minimize taxes with car lease trade/return to car purchase (FLA), how pay just the diff of the two ?
Heywood Ja
Example would be if I traded the lease car in, and treated the residual as a payoff, can I then be limited to taxes only on the difference or additional price of the two? I have a lease to rtrn, valued at 25K$, and a new purchase planned for 40K$, what am I taxed on?, the 15K$ difference if the lease rtrn is treated as a tradein?, or can I get out of the lease, by selling it or turning it in, and somehow still avoid the tax costs of the entire new vehicle, as in get to offset the taxes by the value of the 25K$car? Reside in FLA.
Also, is it true that no tax is assessed on such purchases in Arizona?, person to person I mean? If so, how can I buy there, take it home to FLA, register and drive it?, more to the point, what would the tax scenario be when registering it in FLA.?
Answer
You may not like the answer to this one. They just changed the laws in New York because of the problem you're having now, but as far as I am aware, FL has not changed their laws yet. (more tax revenue for them)
When you trade-in a vehicle you own, you only pay sales tax on the difference between the value of the car you're trading in and the car you're buying. The reasoning behind this is that you've already paid sales tax on the purchase of the vehicle you're trading in, so you should get credit for that sales tax paid. E.G. $20K new car - $8K trade = sales tax paid on new purchase on $12K.
When you lease a vehicle, however, you only pay sales tax on the use of the vehicle. Keep in mind that in the eyes of the tax people it's like you went to Her**z or whatnot and rented a car for 2-5 years. So you don't usually pay the amount of sales tax that you would have if you would have purchased the vehicle. That's why if you want to buy out your lease at the end you still have to pay sales tax on that amount when you buy it out.
So if you trade-in that vehicle you have not paid sales tax on the full vehicle price. Add that to the fact that you're not the titled owner of it(the lease company is the owner) so when you trade it in, if they were to give you sales tax credit, it would be illegal as you're "jumping title". The only way that you're going to be able to get sales tax credit on the trade-in will be to buy it out, pay the sales tax on that amount, then trade it in, which doesn't get you any further ahead.
Sorry to give you the bad news, but I hope this explains why you won't get the sales tax benefit. If you do buy-it out in another state, btw, you will still have issues when you trade it in in FL anyway because when the title goes to the FL DMV, they'll be asking when and where you paid your taxes on it.
Hope this helps.
You may not like the answer to this one. They just changed the laws in New York because of the problem you're having now, but as far as I am aware, FL has not changed their laws yet. (more tax revenue for them)
When you trade-in a vehicle you own, you only pay sales tax on the difference between the value of the car you're trading in and the car you're buying. The reasoning behind this is that you've already paid sales tax on the purchase of the vehicle you're trading in, so you should get credit for that sales tax paid. E.G. $20K new car - $8K trade = sales tax paid on new purchase on $12K.
When you lease a vehicle, however, you only pay sales tax on the use of the vehicle. Keep in mind that in the eyes of the tax people it's like you went to Her**z or whatnot and rented a car for 2-5 years. So you don't usually pay the amount of sales tax that you would have if you would have purchased the vehicle. That's why if you want to buy out your lease at the end you still have to pay sales tax on that amount when you buy it out.
So if you trade-in that vehicle you have not paid sales tax on the full vehicle price. Add that to the fact that you're not the titled owner of it(the lease company is the owner) so when you trade it in, if they were to give you sales tax credit, it would be illegal as you're "jumping title". The only way that you're going to be able to get sales tax credit on the trade-in will be to buy it out, pay the sales tax on that amount, then trade it in, which doesn't get you any further ahead.
Sorry to give you the bad news, but I hope this explains why you won't get the sales tax benefit. If you do buy-it out in another state, btw, you will still have issues when you trade it in in FL anyway because when the title goes to the FL DMV, they'll be asking when and where you paid your taxes on it.
Hope this helps.
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