Buying my In-Laws leased RAM with Chrysler Capital

Ask the Hackrs Buy/Finance
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1

My Father in Law has a lease w/ Chrysler Capital (CC) ending Aug 2023. I will be purchasing the truck from him and am interested in my options for doing so. I’ve never had a lease so only know what Ive read here. My thoughts were:

  1. He buys out and sells to me. Can you buy out a lease early? Is there anyway for us to avoid paying the PA sales tax on both transactions (him buying the truck, him selling to me)?
  2. Transfer the lease to me. I believe this would avoid the double tax hit but I believe I read that CC does not allow lease transfers.
  3. Other options?

Also, I have access to the CC account login but I do not see the lease term documents anywhere. Any idea on how I can retrieve those?

Thanks!!

2
  • He buys out and sells to me.
    • Yes you can but you both pay tax.
    • You can declare it a GIFT and avoid tax.
  • Transfer the lease to me
    • You cannot transfer, that is correct
  • Other options
    • One guy was able to add this name while titling it at the DMV. I don’t know if it will be successful for you.
    • I’ll repeat the GIFT for PA avoidance of tax.
  • Retrieve Lease Documents
    • You have to call and ask for a email / fax.
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3

remember to initiate more than 60 days out from lease end.

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4

Is this an issue if the FIL is buying out his own lease?

5

thank you, good stuff. Are there any considerations to when we buy out the lease? for instance buying out today vs next Dec vs letting it run full term.

6

If you drive the car now and it is still leased to your FIL, you MIGHT get in trouble with CCAP.

7

FIL or original dealership might have copies.

Off the top of my head your portal in PA will not show sales tax

8

That would be tax evasion.

9

Declaring it a gift certainly would be. There are some states that allow for vehicle transfers between family members without a sales tax liability though.

10

Not sure how it’s tax evasion.
Ex:
OP gives FIL $10,000. FIL buys car from CCAP for $10,000
FIL gives car to OP for $0.

Father in law makes no money in this scenario.

11

Op gives money to fil
FIL gives vehicle to OP

For it to be a gift, these can’t both happen. They must be mutually exclusive.

12

I don’t believe PA has that, but if I’m wrong, I’m all ears.

13

The definition of a sale is not dependent on whether the seller made a profit.

As long as value was exchanged between OP and FIL, it’s a sale and not a gift.

14

Tragic to think about paying 6% sales tax 2x just to make the transfer happen.

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