We have a lease that ends Mid April on our car. Our son has decided he would like to keep the car and purchase it.
It is a Toyota leased through Toyota Financial. He is military and is currently out of state from where we live. It will be his first car purchase.
Trying to figure out how to navigate the lease end process the easiest and least expensive way for him from a transfer / tax standpoint. We live in California.
From what I am gathering simplest and easiest process is we buy the vehicle prior to lease end the retitle it in to his name at time of registration. At that point he can then take a loan out on the car to pay off the difference in the down payment . Obviously we have to cover the loan difference until such time as he can get loan.
No simple way to coordinate this with a loan company to close the lease and have him buy without us having to close it and retitle it is there?
Can I do something like that with my wife? the car is on my name and the lease ends in March. Can I buy it, gift it to my wife to avoid taxes and then sell it / trade in?
OP should just get an unsecured Lightstream loan for buyout + tax, when they receive the new title immediately sell to family and apply for sales tax refund (within 10 days - which is only a thing in CA). Family can pay residual plus any fees / finance charges (which can be estimated and settled after).
Call the California department of tax. I’m pretty sure that CA allows arm’s length transactions between relatives and there is no sales tax if you “sell” it to your son.
