Converting a lease over to finance, then selling

Hey gang,

First time caller here. I’m looking to sell my leased 2018 Tacoma (WFH, don’t use it much). Thing is, US Bank doesn’t allow a lease sale within one year of it ending (I’ve got about 9 months left). They told me an option is to finance the truck, then, once the title is in my name, to sell it to whomever I want. Does this add up? Am I missing anything here? Has anyone gone through this process and if so, how much of a hassle is it? I’d ideally like to sell it before my first payment if possible.

Any insights are super appreciated!

That’s how US Bank operates yep

Did You get any quotes from Vroom Carvana AlGo?
By buying the truck You have to pay salex tax from the selling price. For last 9 payments it might be even sales tax from the sales tax originally payed when you signed the lease.

US bank doesn’t allow sales to 3rd parties

You have to buy it first

What does this mean?

A sale is a sale.

A lease transfer is a lease transfer.

Which one are you talking about?

Yes, getting a quote OP will have an idea how much he can expect to sell it for after he will buy the truck, pay sales tax and fees

Apparently, that’s not quite accurate. With a lease, the title is in the bank’s name, and cannot be sold to a third party. If it’s being financed, the title is in my name, and can be.

They told me my payoff amount included all taxes, etc. As I sit, I’ve got a few hundred in positive equity.

1 Like

No
That’s only specific to US Bank

You can sell leased cars to 3rd parties if not US Bank

Is there a tax implication using this method?

Absolutely. When you buy out the lease, you get to pay sales tax on it, unless you’re in CA that has a 10 day exemption.

1 Like