Hi - I have a bit of a convoluted question I’d love some help with. I have a lease that’s coming due at the end of March for an 2019 Atlas 3.6 SE w/Tech AWD. Its residual is $24k and the car only has 8k miles on it. I don’t need the car anymore at the end of the lease, but my family member would be open to owning it. VW is saying only I can purchase the vehicle, so we’d need to go through whatever effort is involved with titling it in my name and dealing with the transfer to my relative. How involved is this? Can my relative be the one that pays for the car so we can then just gift it to them? I’ve never bought/sold a vehicle before, so honestly don’t fully understand how involved this would be.
Separately, the dealership obviously would prefer to get us into a new vehicle and reap the excess equity by having us return it. They’ve offered to let my relative step into my shoes for a new lease so we wouldn’t need to deal with transfers and whatnot with the sale option. My relative is open to a lease if it’s a good deal. What kind of offer would even make this option tempting for us given the equity in the car? I don’t even know where to begin. They offered $499/month plus 3k as a starting point for a 2023 atlas, but told me to “make them an offer”. The old lease was $450/month for a low mileage lease (which we are ok with) on a 39 month lease.
Any insights would be super helpful. Thank you for your time.
See if there is a dealer that would be willing to help facilitate the sale to and transfer to the relative. Otherwise you should just buy it using finance with a credit union, then complete the transfer to the relative at the credit union. You might have to pay the dealer something to make it worth their time. Double check the value with carmax etc incase it doesn’t work out and you just want to sell it and pocket the equity, I’d imagine there is a decent chunk there. That’s crazy low mileage and a great deal for your relative, wouldn’t bother with them leasing something new, deals stink, an Audi dealer could help to. Maybe somebody knows somebody in your social circle.
Here’s what you do: After finding a trusted buyer, have that person mail a check for the buyout amount to the leasing company. Once you receive the title (the leasing company will only send it to the person leasing the car), sign it to release your interest in the vehicle, and give the title to the buyer. The buyer can then register the car and pay sales tax at that time.
Is there any downside to having my relative buy out the car in full from VW financing, then when I get the title, I hand it over and they register it in NY (car is currently registered in WA state) and my relative then pays the sales tax in NY when they register it?
Which aspect is illegal. Sorry for the silly question as this is my first time doing this. Would it be ok for my relative to purchase the vehicle directly with VW Finance, I take title, and then gift them the vehicle? Or would it be safer for me to purchase the vehicle, take title, and then gift them the vehicle?
If all of you live close by, I would suggest having the car paid off and then all of you take the paperwork and go together to the DMV.
The people at the DMV should be able to help you navigate the situation, whether that means your relative can title it directly or you title it before gifting it.
The title jumping issue comes into play when you purchase the vehicle and then fail to register it before passing it on.
Your family member can not buy out your lease. Only you can.
The proper way to do this would be for you to buy it, register it in your name and THEN gift it to a family member. There may be tax implications in doing so (which is why title jumping is usually illegal, as it bypasses a taxable event).
Thanks for your insights. Do you think VW Credit would allow my relative to finance the sale directly with them and handle the transfer of title to him (vs me) so it just gets wrapped up within VW Credit?
