My Lexus lease is set to end next Friday (1/12) and I’m wanting to buy it out for my brother. The plan is to have the car financed under his name though since he’ll be using it.
The question is, what exactly is the process of doing this? I go to the dealership before maturity date and sign some papers and they run his credit and voila?
Anything else that I need to know?
Thank you!
Your brother can’t buy it. Youd need to either buy it and sell/gift it to him or have the dealer facilitate buying ut from you and then selling it to him.
If you don’t want to involve a dealer:
This will most likely involve paying tax twice unfortunately, although I would see if GA has any provisions for transferring cars tax-free within family.
Alternatively as Matt mentioned you may try negotiating with a local dealer, such that they agree to buyout your car for $X and then sell it to your brother for $Y. This will probably cost at least a $500-$1k doc fee, if they’re even willing to do it, but would save having to pay tax twice. And your brother could get financing from the dealer, if that was beneficial.
Apologize for the ignorance since this is my first ever lease buyout. The other day a LFS (Lexus Financial) rep reached out and asked if I was buying, returning or replacing the car and I told her (the rep) that I’ll be keeping it but will be under my brother’s name. She just told me to go to the dealership and have them facilitate the financing from dealership (if wanting to go with LFS again).
The confusing part of your statement, to me, is how is the dealership buying out from me and then selling to him since the lease is maturing though? Wouldn’t me coming back, at maturity date, to the dealership basically ends my obligation lease-wise and then the car is free to be financed back to me or whomever with me?
Again, sorry for the ignorance!
We’re going to use the same dealership I originally leased it from, to get financing from him. At this point in our situation, he’s willing to use whichever method is most convenient to get financing and I think getting captive financing (through LFS) is the easiest, to him at least.
That’s just their script, doesn’t mean that’s necessarily in your best interest
Dealer won’t do anything for free. From doc fees to marking up the APR, they are there to make money on each transaction.
If you want to avoid that, you can do it on your own. Just avoid the typical double tax of titling it once in your name and then your brother titles it in his.
Up to you to find out GA laws on whether a sibling transfer is tax exempt and what’s the best APR your brother can find.
Yes, the dealer then has a vehicle that they can sell to your brother at whatever price they feel like.
If youre trying to execute your end of lease buyout option so your brother can purchase it for your contract residual value, that is not the same thing.
Yes the second part is what I’m trying to do. I’ll think about it because my credit isn’t exactly in the best shape atm. Thanks for the info!
Then youre not doing a lease turn in. Youll need to buy it and resell it or the dealer will need to buy it out at your buyout, turn around and sell it for what they paid for it, and charge you some fee to do it
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