Hi LH’ers, I had a question on buying out a lease and needing to change the name on the title here in NJ.
I leased a Hyundai Elantra Limited for my daughter 3yrs ago to use while away at college. She has recently graduated and landed a full-time teaching position, and was hoping for another great lease, but we have not found one here and she is opting to buyout the Elantra.
Since the lease/title was in my name, and she wants to now purchase, Hyundai is telling me they can only sell/title the Elantra in my name after the buy-out. If we want a title in my daughter’s name, we either need to give the car to her, and then let her register it under her name, or we need to involve a local Hyundai dealer to perform a 3rd party buyout. I’m sure the 3rd party buy-out option via a dealer will cost her additional monies.
If I purchase the car from Hyundai which requires paying NJ Sales tax up front, and sign it over to my daughter, can she request title / registration without having to pay NJ Sales tax again?
Another question, can we use a service like Carvana or Vroom for a 3rd party buyout at a minimal fee?
What is the best way to approach this in NJ? The current buyout is $11,256.06 plus $745.71 for taxes,
if we essentially need to pay sales taxes twice, that another $800 and may change options she had considered in a new lease or selling to Carvava/Vroom etc.
Since she is a younger person with limited credit history (no auto history), part of her desire to have the car titled in her name is so she can take out a used auto loan in her name and pay it off. She could buy the car out in cash, but with loan rates at 2.74-3.34%, its very little interest ad well worth paying to build out her credit history.
Thanks in advance for all assistance and recommendations on the best path forward for her.
take out a private party auto loan from a credit union to pay you after you buy the car.
Co-sign on a loan you take out to buy the car from HMF
Finance a $17-18k brand new car if you can afford it. The new car market hasn’t been as affected as used cars in the pandemic-related surge in used car pricing. There’s a chance you’re buying the Elantra at the height of a bubble.
Since I just noticed you’re in NJ, see if you can extend your lease or find a relative’s unused car or do a long-term rental until Charge-Up NJ comes back with the EV rebate up to $5,000
Also: new grad rebates and any first responder/essential worker rebates that teachers qualify for would reduce the price of a new car if you choose to go Option 3 above.
Pending the approval of the Fiscal Year 2022 budget, the program will reopen with a point-of-sale incentive during Summer 2021 for vehicles purchased on/after the date of program re-launch
Yep seems as much from the site. BOL to hackrs in NJ!
Hmm, this post seems to be about Elantra, not an EV, so not sure how CHARGE UP applies. I wouldn’t hold my breath but rest assured I’ll be back with the details on that when/if it returns.
For this one I’d sell it to Carvana and lease another, but of course I’d say that.
$1444 equity to carry forward, $400 college grad rebate, you’re at $5392 3-year cost for a new 3-year lease on a new Elantra (or $150/month, $150 DAS, all in). All your oil change appointments would be included this time, too.
You can also buy it out and just pay the tax once, then gift it to your daughter. There’s a NJ DMV form to claim tax exemption for a gift car for immediate family. $12k plus registration twice would get it done.
Only you can decide which is better for you and your daughter (buy vs lease). ~$5400 for a lease vs ~12,400 for a pre-owned are both a good deal for an Elantra in the current market. Can’t go wrong.
Thx for the advice @mllcb42 and @max_g, we need to rethink a new lease, since the purchase and loan financing is proving to be difficult and costly based on our desired outcome.
