Has anyone in Texas ever purchased their vehicle at the end of the lease? I did earlier this month and I am getting my title tomorrow via FedEx. Does anyone know if thats what I will need to sell my vehicle or will it be a removal of lien letter that I need to take down to the DMV and get a title issued?
Don’t you need to go to DMV to officially switch the title?
I have no idea how its done in TX. I have only lived here for 2 years and this is the first lease I have ever bought out. I know how it would work in Ohio, but not TX specifically. Some things are a little backwards.
Interesting as TX charges full sales tax on leases, but you brought it in from the outside.
Do they charge sales tax on the purchase?
I wonder how sticky if any it gets.
I did not pay taxes to Ally.
exactly, when you register the car (to issue the title in your name), what taxes are due.
Will either be what you paid Ally for the car or “presumptive value” per Texas DMV. The last 2 cars that I purchased from out of state were taxed based on “presumptive value.” ('99 Trans Am WS6 (18k miles) purchased May '15 in FL and '05 M3 purchased June '20 in CA) … which for me was a blessing because the “presumptive value” on those cars was much less than what I paid. The lady at the tax office never asked me for a bill of sale on either. She put the VIN in the computer and whatever it told her the value was is what she based tax from. I’m located in the Dallas/Ft Worth area.
Just found my papers on both of those cars. '99 Trans Am WS6 taxable value was $3500.00 … '05 M3 taxable value $5850.00 … true market value on those cars is much more.
Who is buying it and what paperwork do they ask for?
A quick update. I received the title in the mail. It was the banks version of the title removing the lien.
I will need to take that into my local tax accessors office, pay taxes, and registration fees, and then likely wait 20 days for the new title to come to me in the mail.
I also found out that if you want to sell to Carmax then you have to wait for 30 days past the issued date on the title…
Hope this helps someone else in TX that has similar questions.
Let us know how much they charge you in taxes.
I was charged 6.25% of my purchase price. In TX there is a standard application document for getting the title and registration moved to your name(130-U). You have to take that, plus your purchase contract, and the title in to your tax accessors office. The title is mailed and typically takes 1 to 2 weeks.
Could you have handed the title to buyer and they get charged the tax? Basically I want a new car. I am in a long term relationship where we don’t plan to get married for various reasons. The GF loves my car and wants to buy it out. I’d rather her have it at a price that is about 6k under retail price rather than let it go back to be sold to someone else.