Can I lease an EV car, with great incentives, then buy out the car to sell it? Say the car is $33k, 15k incentives, making a cap cost 18k, residual is 16k. 36 payments are $4000.
Can I pay the $4000 payments and residual equaling 20,000, can I turn around and sell the car for 25,000? Sorry if my numbers are off, but sentiment is the same.
I imagine I will have to pay income taxes on it, but are there any laws against doing this? Time frame that I can pay off the lease? I did read that you don’t have to pay taxes on a vehicle that you buy and sell within 10 days, but that might be state specific.
Yes that deal, that hasn’t even gone through. It’s been a total mess. The funding got rejected because of the dealership didn’t write the lease correct and collected the wrong state tax. The dealership says they have corrected it and are pleading to sell me the car. I am close to signing a deal on a Tacoma, but still interested in continuing with the Hyundai. I will update that page as soon as I have more information.
I’m not even referring to the state incentive which would come off my taxes, just the lease cash and dealer cash. I read through the lease contract and don’t see anything except the $300 early buyout fee. It says that the buyout price is calculated on this definition of adjusted lease balance below, and seem straightforward to me.
“ADJUSTED LEASE BALANCE. Your Adjusted Lease Balance is the Adjusted Capitalized Cost disclosed on page 2 of this Lease, less all depreciation and other amortized amounts accrued up to the termination date, calculated according to the Constant Yield Method. “Constant Yield Method” means the method of determining the rent charge portion of each base monthly payment under which the rent charge for each month is earned in advance by multiplying the constant rate implicit in the Lease times the balance subject to rent charge as it declines during the scheduled Lease Term. At any time during the scheduled Lease Term, the balance subject to rent charge is the differ”
I have spent so many hours, 3 weeks, on this original deal, it’s hard to know when to fold them and when to hold them.
I would be very careful about thinking there will automatically be equity, and I would go in with the understanding that you very likely end up getting stuck paying sales tax if ca dmv isn’t the very model of efficiency.
Yeah, they collected California tax, and I talked to California IRS and they said they shouldn’t have with an interstate lease as long as it doesn’t drive on California roads, I told the dealer, but you know, they always know better. I do want the car, but I’m just moving both pawns forward, and worry I’m going to end up with both cars, just exploring my options. It’s a crazy good deal, just don’t know what I would do with an extra car.
Be very careful in your market analysis, those heavily rebated EV generally don’t carry high resale value…
If it is so cheap to lease, people will just lease new instead of buying used, unless there are some very unique rebated that only a handful of ppl qualify for
Yeah, that’s a great point. The only edge I really have is that you can’t get one within 1000 miles of me. Only offered in 13 states. My main goal would be just to break even. Between the one pay, and shipping I would have about 4300 into it, and residual is 16660. So I would have to sell it for about 21,000 to break even. That would be real close to what you could get it for at the dealership, and after the federal and state incentive.
Louisiana. They definitely have lead me on to believe that they know what they’re doing, but obviously they don’t. Just last week they told me that they would have to hire some title company, the DMV desk, which California mandates they use to facilitate the transaction and would cost over $2000 and that wasn’t including taxes, but it seems like they figured it out now with out dmv desk
OK yeah, I’ve talked to my DMV, and they keep mentioning some tax exemption form acting like I shouldn’t have to pay any taxes, but mention that the tax should be in the monthly payment, they get lost when I say that I paid all my payments at once And I’m not even sure why on the new lease they collected Louisiana taxes because the incentives are more than the residual. I thought that I was only paying taxes on the portion that I used? Louisiana is a tax after incentive state. I have an email out to sales tax usage department of the state IRS.
I feel like I have a new hobby of collecting coupons, or manipulating credit card points. with the time I have spent on this I could’ve made the money I would’ve saved in my side businesses.
I understand that I would be paying sales taxes on on the residual if I bought it out.
But what is the difference between sales tax and monthly use tax? What are they calculated on?
OK, from what I googled there may not be sales tax, but the monthly use tax is just tax on your monthly payment using your local tax percent. I guess in some states like Texas you have to pay that all upfront? And if I used a one pay, my use tax will be 8.95% of my one pay?
My one pay was $3300, and looking at the lease now, it does say monthly sales/use tax of that 1400 and when they rewrote it for La it was 1900, which they are paying the difference they said.
Here’s the lease, it looks totally incomplete, and wonky to me. They acted like they couldn’t adjust a lot of the inquires to show a one pay period but the bottom line plays out.
Right which may be any fees and unpaid monthly payments etc.
How are the collecting 1642 in use tax?
Sales 31,012
Cap red. 14500
= 16512
Residual 16660
Depr. and amortized amounts -148$
My payments are from 1200 rent charge(finance cost?) and 650 disp fee, and 400 in dealer fee an registration
1200
650
400
=2250 plus 1400 use tax =3650
1642 is 8.95%(louisiana) of 18346 and 9.25%(california) 17751. Are they collecting tax on the depreciated amount plus rent charge?
