Lease Buyout + Transfer Question

[Zion_Lee]

Hello. I’m looking to sell my 36mo. leased Jeep Wrangler Sahara(ends Dec. 2022) to my cousin. However, it seems that Chrysler finance doesn’t allow lease transfer. the original plan was to do lease transfer to my cousin and having him buyout at the end-of-term. After a lesson learned that we cannot go that route, we are considering myself buying out early with cash and transferring title to my cousin within 10 days(to avoid double tax). My cousin is planning to get it financed and hand me a check from his bank. I’m curious if the second option myself buying out and transferring title works.

Thank you!

[Batistuta]

Assuming you are in CA from the tag, you can buy your lease from the bank and sell it within 10 days to avoid double taxation. Read this thread.

California 10 day tax exempt For lease buyout

Hi I have looked thoroughly here and this topic has not been discussed. In CA, you are allowed to payoff your leased car in order to resell it without paying taxes on the payoff IF you can sell it back and to a third party which would need to register the car within ten days of the original leasee recieving the title form the lessor company. BUT YOU HAVE TO MAKE SURE THE CAR IS TRANSFERED TO THE NEW ONWER WITHIN 10 days. Now is the tricky part. What if I payoff the car and sell it to s deal…

[Firstkill]

If Lender does not collect tax at the buy out then you won’t be double taxed
You would get the title release and not even Register the car in your name.

After you get the title release. You can just sign it over to your cousin on the back of the paper.

Your cousin goes to the dmv and settled the tax with registration in their name.

[Zion_Lee]

So basically let kia finance company to release title and send me the title(pink slip) and then transfer the title to my cousin directly rather than myself?

[Firstkill]

Assuming Kia doesn’t collect tax on the buyout.

Yes, On the back there are lines to fill out to transfer to a new party to. The new party does all the dmv stuff.

If your cousin needs a bank loan to buy the car Im not sure how that works.

[Zion_Lee]

Thanks! oh my bad… to avoid further confusion, I’m buying out kia lease for myself and wrangler sahara for my cousin XD.

[Sarafil]

The bank will write the name of who they are releasing the car to on the back - they aren’t giving you a blank title. As an individual (non-dealer) you typically can’t do another reassignment to someone else on that same title. So you need to take the lender released title and get the car titled in your name first before you can reassign it.