Lease end timing?


Id like to sell my hyundai and toyota leases to a 3rd party. However, id also lime to finance the residuals through toyota/hyundai prior to selling the cars. Will i need the title in hand prior to doing this? Im on a short timeline and am worried that wont be complete in time.


So you want to buyout & then sell?

Yes. But worried about the timing with toyota and hyundai. Sounds like hyundai may be difficult (i have to go to the dealer to buy it out anyway)

Have you read the list of lessors which allow direct third-party buyouts and which don’t?

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Toyota allows it. My issue is that i dont want a 2rd party buyout. I want to buy the cars myself, receive financing for the residual and then resell

So you like paying the government free $2-3k in taxes title and fees? 2nd party buyout’s don’t have to

ryan reynolds hd GIF


In either case if you’re not paying in full at the buyout, it will be longer as the finance company will need the title first.

But try to sell it without buying out will save $

Because id like the residual value as $ at a low apr for use elsewhere

How do you avoid tax? You still pay income tax on the gains after subtracting cost (residual value)

Sales tax is the tax in question here.

Also, unless youre doing an unsecured loan at a higher apr, you cant keep the car loan active after selling the vehicle.

If you sell to a dealer with a Resale license then that purchase is non taxable.

So if you sell to Hyundai or Toyota (or Auto group see the thread in the WIKI section) they can buy it from you without tax.

Hyundai has many restrictions and the only tax free one is Selling to a Hyundai dealer but for example

  • Carvana offers you 40k
  • Hyundai dealer offers you 38k
  • You can buy it for 39k after tax and payoff without tax is 36k. (3k tax)

You make 1k selling it to Carvana (Because you have to pay tax) and 2k to Hyundai because they don’t.

The Toyota can be sold to any dealer without tax (unless you are with South East Toyota, then you are forced to buy it out.) So the Toyota can be sold to Carvana without tax.

Read the Wiki section to see how to maximize / take advantage of Big Auto Groups to sell your
Hyundai. The Toyota can go to any group.

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Thanks! Didnt know about the loan being secured

Yea, theyll hold a lien on the title.

Thank you! Im trying to figure this out. I have to pay the sales tax?

You will have to pay sales tax if/when you buy out the lease

If you sell your car as a lease direct to a ‘supported’ dealer network, you don’t have to pay tax and payoff won’t include tax.

If you sell it to an ‘unsupported’ dealer network. You have to buy it, pay taxes and registration, and then sell it. So if you sell your Hyundai to Carvana, the delta difference needs to be huge.

Toyota ‘supports’ all major dealers. Hyundai supports only their’s and treats the others like they are unsupported.

Read the Wiki to see what happens to unsupported dealers. It’s pretty complicated and each Brand has a different list.