Hi I am trying to do a lease buyout transfer for a car that I am currently leasing in Arizona. The buyer is my sister in NJ. Can someone please explain how the process works? BMW sent me the buyout amount which includes AZ tax. I don’t want to pay tax on it because I am not buying the car (my sister is) and the car will not be registered in AZ.
Should my sister write a cashiers check to BMW for the buyout amount (minus tax). BMW release the title to me and I send the title to her. She gets it registered in NJ and pays tax there?
That’s probably the path of fewest complications. Though BMWFS does not do transfers in the last 6 months of the lease and your sister will still need to qualify for the transfer, per BMWFS.
Edit: the article you referenced is from 14 months ago… a lot has changed since. Many banks either limit buyouts to the lessee, or similar-make dealerships, or charge “market value” for third party sales. Also, the 10-day tax exemption described applies only in California.
I deleted my post. I certainly am not advocating any kind of fraud. I just assumed that if someone loans you the money to buy the car (perhaps gift was a poor choice of words), and you in turn give them the car instead of the money to pay them back, that would be a way of accomplishing this
In case it’s not obvious—I’m not a CPA. Apologies if I misled the OP
I am little less than 6 months away from my lease end so yeah lease transfer won’t work. She only needs the car for six months, so I thought may be I should just let her use this car leased to me with her own insurance on it but BMW says that’s not allowed per lease agreement