Lease assumption question

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1

I am looking to get out of my lease and I don’t understand how the tax works in IL.

My payment is $1,087/mo. I assume the tax, which is listed @ $3,028 on the paperwork is included into that price ($84/mo) since I only put 1st month down at signing.

If I transfer the lease, does the new owner (if in IL) continue to pay the $1,087/mo? Or would it be $1,003/mo and they pick up the taxes wherever they live? How do I advertise the car? Looking around this site I see it listed both ways. Am I still liable for the remaining 30 months of taxes on a lease transfer ($2,520)? I assume I would not be and the new owner is since we only pay a use tax on the amount that you are using.

Also, does anyone know if the Brake maintenance agreement is transferable?

2

You advertise your payment as what it is: $1,087

It’s impossible for you to know what the next person’s tax situation is, so don’t concern yourself with it.

Any taxes previously paid are water under the bridge: no point thinking about that either.

Only thing that matters is whether you’ll find a buyer at your contractual payment of 1087 or will need to provide an incentive

3

I am OK providing incentive to drop the monthly. Do I pay this to BMFS or to the new prospective owner?

Would the new owner pay the $1,087 and then his portion of tax on top of it? For simplicity, assuming $84 in tax ie: he would be paying $1,171 monthly before incentives.

4

New prospective lessee.

He or she will pay tax on the $1,087 (unless they happen to be exempt).

5

I did end up calling the Secretary of State for IL. They claimed that as long as the leasing company does not change, then no additional taxes are due on a lease transfer. The new owner would have to purchase new plates.

I can’t find any information on their website stating one way or the other.