NJ lease on a 2018 Ford. For a while, I thought the market would allow a nice profit, but over time, the used market shifted and my mileage added up and now I am almost 18,000 miles over the agreed upon miles, 60,000 at .25/mile.
I have a new custom ordered truck at the dealer (who is pressuring me to take delivery or lose it) and when I went to sell to many of the companies that buy out leases or loans, they keep saying, sorry, not with Ford. I got a smoking deal on the new F150 (Dealer X plus $3,000 personal offer plus $1000 rebate) so I don’t want to walk from the new car deal and keep the old 2018 if I don’t have to.
If I sold the car, I would owe an additional $1800 in NJ tax, so any offer needs to be my buyout plus the tax, $28,770. Turning the car back in to the dealer would cost me $4400.
Carmax just offered $27,000, Driveaway offered more but wont deal with Ford. I believe the Ford issue is going to blow that Carmax offer up if I go to turn it over.
Any creative thoughts on how to get rid of the 2018 F150 and take the smallest haircut?
Call Ford dealers or big dealers with a Ford store in their auto group. They can buy it out without issue & recently have been offering more than online companies
Thanks @Bumboola . I thought that if m dealer was offering nothing, other Ford dealers would be doing the same. If I sell or transfer the lease to another Ford dealer, will I have to pay NJ tax on the selling price or can the new Ford purchase offset the tax>?
When is the lease due back? If I remember correctly (unless something changed recently) Ford doesn’t allow leased vehicles to be sold in the final 6 months of the lease. I feel like this issue has come up in the past.
90 days for third parties, not sure about the first party. But washing sales tax doesn’t sound worthwhile in this scenario. If we’re at 4 years, Ford is unlike to extend another 91 days.
If you believe you have a buyer at a price that works for you, could you buy out the lease from Ford first? Once the title is in your name, Carmax or Driveaway or any private party buyer can buy from you directly.
There are a few challenges in this method no doubt. First this of course requires you to come up with the money to buy out the car. And the process may take 2-4 weeks so you have the risk that the buyer may re-neg. Regarding the tax on the car, this is very state dependent so I cannot comment for NJ. In CA, there is a provision in the law that if you are “buying out the lease in order to resell it” you don’t have to pay sales tax on it. There are several conditions attached so you need to be careful and in some cases you may need to pay the tax and get it reimbursed later, but it is possible and there are many posts on LH of folks who have done this. So it may be worth checking out if this is possible in NJ.
But overall, if you are indeed able to avoid the sales tax and sell the car for your residual value or slightly higher, that is a lot better than turning it in and paying $4400 to do so!
Buying out the lease is the direction I am going. As soon as I have a buyer, I plan on proceeding down this path so I am not out $26,000 for too long. As for the taxes, I am trying to figure out if NJ refunds the taxes on the sale if I have to pay them or if NJ refunds the taxes when the buyer goes to register the truck a few days after the transaction completes. My dealer is trying to keep me in the dark so they can maximizes their profit, hoping I just give them the car.
Ugh. That’s too bad. Seems the NJ will get to tax me then on the sale handled at the dealer, and then collect again when the buyer registers the car at DMV. It’s good to be the king.
That has continued to confuse me too. I have been extending my lease monthly, and so I am finished with my lease at this point, am I “within 120 days of maturity” if it matured already, although I guess I could try to extend the lease for 5 months, no idea what Ford would say to this, and then be within the date spread. I’ve been extending month to month for the past year.
