Hello,
I am the new guy here. I have a question on my car lease which is ending soon.
I had leased a hyundai elantra 2020 in Jan 2020. it was a 36 month lease $259/mo till Jan 2023 for 10,000mi/year. current Odometer is 13,500 miles. The buyout quote is about $13k. Residual value is $11,799 in the lease contract. turn in fee is $300. Carvana is offering appox $22k for it.
I would need a car. I am thinking if it makes sense to just buyout the current lease and keep driving it as there is nothing wrong with the car. It is in good shape. serves my needs & not driven much miles. Or if I should get the newer car.
Questions:
is buying the current car & driving it for next few years a good idea? Or should I get new vehicle? Looking for financially smart decision.
for buying from Hyundai, they have asked me to mail cashier’s check along with Odo disclosure statement. does it make sense to send a check as given or should I visit the dealership?
for texas title transfer & sales tax - basically, steps after sending of cashier’s check. Does anyone has a guide on what to do / expect? so far I have done some research on TX DMC website & found the following
Hyundai is supposed to send me some title paperwork after processing of payment. But I have heard complaints on reddit/Google that people not getting that for months, causing the car not to drivable as title was not transferred. is that true?
I have to make an appointment to Texas DMV for transfer a title in my name. I might have to pay sales tax? but not sure, how much. Basically, there is no step by step guide or contact details on how can help?
Given the total cost Hyundai Buyout quote + sales tax + any other fees, does it still makes sense to buyout the vehicle? Or does it make sense to use the equity to buy a new ride?
Financially smart? Buy car and keep it
1a) Do you feel smart after doing it? Usually not.
1b) Getting a new car right now is throwing away TTL which is about $3000.
1c) Your car has a 10 yr warranty, so you are definitely smart if you buy it in this season.
Going to a dealership means you pay an additional $$$$ in junk fees But they do have a quick way to finance you (You do too but it requires something called a ‘web browser’)
A few $ to change title, transfer tax should be in the payoff That’s why its higher than the RV.
They are slow, the car is drivable, just not sellable.
You either pay sales tax at Hyundai or at Texas DMV, no getting around it. Hyundai will give you some paperwork if you pay them. (Note there have been cases where Hyundai collected the tax and did NOT forward it to the DMV, hope you aren’t one of them)
doesn’t seem like it includes the sales tax. I am okay to pay sales tax, but still need to know who am I paying. Going to contact Hyundai Motor finance on Monday and clarify. I will document my journey for everyone’s benefit.
Sales Tax situation isn’t exactly clear. I have searched the forum. Getting mixed messages. We will know that once I go to DMV to register the car after getting the title from Hyundai.
Regarding the timing to buy. since my lease is maturing in Jan 2023. I have paid up till Aug 2022. 4 payment of $259 from sept-dec are left. Should I wait or buy now? there is a $300 purchase option fee in the lease agreement.
I would like to buy now to avoid any last minute hassles but wondering if I would have to pay extra now, if I do buy early.
Figuring out the same issue on a Mazda6. Lease ends December 1. Buyout about 13.5k. Carvana 26k offer. I WFH and don’t need a car much. Warranty runs out December 1. I can afford the buyout without financing but dumping that much cash in this sort of inflation seems stupid. Financing the car is a pretty high rate. No idea.
Sounds good. Do you how do they calculate that price/discount?
About sales tax, I found the first title/registration when I leased the car. the sales price is listed 17.6k & something with $2000 rebate. Further, it mentions trade in which is $200 more than sales price, around $17.8k. Thus, total taxable value is sale price - trade in = $0. Thus, no sales tax was paid. Interesting!
I’m either buying it or financing a new one (math seems to work out better for financing more than leasing more often than not on cars I’m looking at). I just hate dumping that much cash right now especially with the warranty running out. Guess I could extend the warranty with a non-dealer provider. No way I’m just turning that in either way.
You are buying a 13k-miles Elantra for $11k-$12k below market value. There is zero doubt this is the smart play.
Don’t go to the dealer. No reason to get a middleman involved.
HMF is dog slow and, yes, if the reg expired while waiting for title, it would not be driveable. Since you are doing it now rather than waiting till end of term, you’ll have breathing room.
As for the tax question, the first Google hit gave me the answer:
Also, no tax is due by the lessee on the purchase of a motor vehicle for lease in Texas. Any tax paid by the lessee when the motor vehicle was titled and registered in Texas was paid in the name of and for the lessor.
no tax is due by the lessee on the purchase of a motor vehicle for lease in Texas. Any tax paid by the lessee when the motor vehicle was titled and registered in Texas was paid in the name of and for the lessor.no tax is due by the lessee on the purchase of a motor vehicle for lease in Texas
@Qbrozen
Here, this is only for the lease. But when you buy it, you are transferring title from the owner. then still qualify as a lease?
