That is a good point. I had investigated that and found two different answers. I called Lexus Financial, Swap a Lease, the local BMV, and the state tax office. I was told that either:
A) the taxes would stay the same as it was still owned by Lexus Financial and the taxes were rolled into the lease at the time of inception so a transfer to a new state would not matter
B) I would pay the difference between the Delaware “documentation fee” (which is their version of a tax on vehicles) of 4.25% and the Indiana tax of 7%. The monthly difference would be approximately $15/month in this case
It seems like after two hours, someone should be able to give me a solid answer, but I guess that shows how convoluted our tax system is.
It’s a monumental pain in the ass. I swapped out my BMW from to va to md, and I spent 3 hours on the phone and getting a definitive answer from BMW, md, or va was almost impossible. I did find out the key question that needs to be asked is does the state the car is being transferred to recognize tax paid in the state it’s coming from.
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After quite a long time on the phone I have found out that I will have to pay the difference ($15/month), but Indiana would give me a credit for all taxes paid in Delaware, so I won’t get hit with a large tax bill for taking over the lease.
This is a great deal, I would jump on it and try to cancel the 7500 wear and tear and get my money back lol
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Thanks. Are you generally able to cancel these things? I’ve never been a big fan of them, and it if it could cover some of my transfer costs, it would be worth it cancel it.
Just a quick FYI. If you have a FedEx account (I do for my business), Lexus Financial will kindly use your account to send documents so it does take quite as much time to complete the transfer. I’m still waiting on the original leasee to snail mail back permission for them to send me a credit app. I feel like this process is deliberately archaic.
How did this ultimately work out for you Bilious? I’m considering this option for my next vehicle.
It worked out really well. The RC F goes back in two weeks. I’m probably going to do a short term lease assumption again, as I’m having trouble finding anything I want long-term for a good price.
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Great info here thank you
That’s encouraging! Do you recall how long the entire transfer process took? I’m looking into a vehicle financed through Lexus Financial on Leasetrader and am concerned about timing.
Also did you use a service to inspect the vehicle for you and how’d that go? Thanks for taking time and sharing your experience.
Happy to help. The process took 3-4 weeks to complete. I don’t know if they’ve changed any of their procedures in the last 18 months or so. Lexus uses AutoVin as their inspection company. I have an appointment for this Tuesday for someone to come to the house and perform the inspection. Then I just have to make an appointment at my local dealership to turn in the vehicle.
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Great info and very helpful. Thanks again!
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