Hello guys,
This is my first time posting here. Been a follower of this forum for about an year now.
Needed a help on my current situation. So this is how it goes:
My sister leased a 2017 Audi A4 in July 2017 for 36/15K and we have about 15 months left on it. Currently she’s not using it as much as she thought of using it and I’m thinking of getting the car over to CA where I’m residing now. Let’s say it was a not so good deal,as that was the time when the B9 A4 just came out. So at this point it makes more sense to buy it out.
This was leased from the state of GA, and for those of you who don’t know, GA charges sales tax on the whole vehicle value every time the title is changed even if it is the same lessor or buyer.
As it stands now, I’ve the following options now:
Buyout the car in my sister’s name and pay the sales tax in GA and then get it to CA, and make the title transfer under the gift transfer and pay the appropriate tax. This option leads to us paying sales tax two times.
Do a lease transfer and then buyout on my name and pay the sales tax in CA on the book value.
Or just get the car to CA without a transfer by transferring my residence to GA as I’m anyways working on a contract in CA, and add my name to the insurance to use it and then find a dealer who’s willing to work with the residual value at the end of the lease term and then buy it out in my name as Audi Financial charges a difference buyout price for third parties.
So what would you guys think is the best option to do?
I would not recommend anyone buy out their lease on a sedan in most situations, in most cases the residual is so poor that it isn’t a good financial decision. What’s with the fixation on buying the lease out at the end? Is the vehicle value close to the lease buyout at the moment? It makes even less sense if she didn’t get a good deal on the current lease terms.
Check the vehicle using Vroom, Carvana, etc and compare to buyout and try and get rid of it. With you being in Cali you can get the best Audi deals in the country, so it makes even less sense to try and turn her bad deal into your bad deal.
Yeah, even I thought of selling it to Vroom or Carvana. The problem is AFS charges a different buyout price for the third party dealers, and that kills the deal. So we cannot offload it without a huge negative equity. If AFS would give the same buyout price for third parties as they gave her, the negative equity wouldn’t be more than 1500$.
Could she get a short term loan, buy the vehicle out and then sell as soon as possible to Vroom/Carvana? If she really doesn’t want the vehicle anymore an Audi/VW/Porsche dealer in GA might offer a decent amount for it. They might price match Vroom/Carvana, or at least come close.
Where did you hear that AFS would charge a different payoff for 3rd party? Under my account it only gives one quote. Plus, the payoff is already part of the lease- (months left x monthly) + RV.
