Lease transfer with sale in mind

Ask the Hackrs
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1

Hello!

First things first, I am so thankful for this forum; it has saved me thousands of dollars!

I have a 2020 Lincoln Navigator lease that is coming due in April of 2023. The lease payment is $886 and the buyout is $53k ($83k MSRP) .

My initial plan was to buy it and sell it myself for about $67k. I have been watching them online and similar cars are selling for $70k+.

The problem with that is when I buy it I will have to pay 6.25% tax ($3,312).

So then I started thinking about transferring it to someone who understands leases and who ultimately plans to buy it! We would both save some money on taxes and they would get a better deal on the car because of that.

I have a couple questions:

1a. Is it Ford that has a rule banning lease transfer in the last 6 months of the lease?

1b. If so, if I took advantage of the 2 month lease extension that Ford is offering does that give me some extra time to find a buyer?

  1. Is there anything I am missing in my thought process? This new lease owner is paying tax on a lower amount and I am skipping the tax all together.

Thanks in advance!

2

I dont believe Ford credit will allow tramsfers in the last 6 months, but I may be wrong.

What state are you in? You tagged CA and TX. The tax implications for a buy out to resell are significantly different between the two.

3

It is not California. The lowest sales tax rate here in California is 7.25%

4

Did a ford dealer make an offer? Or the 6 month rule applies as well?

5

Thanks for your thoughts.

I did not mean to tag California, I am in Texas.

The best trade in offer I have gotten so far is $54k which is lower than I am willing to accept.

Any thoughts on how the 2 month lease extension would impact the 6 month rule?

6

Your plan was to clear about 67-56=11k? No one is going to pay that for a lease transfer.

What’s the highest offer you’ve received from your online aggregators if you were to click “I own this car”?

7

The only way someone would pay that for a lease transfer is if they ultimately wanted to buy it. They would pay tax on $53,000 instead of $67,000 and would get the car cheaper than similar are listed online.

I have had a couple offers at trade in value and looked at some “buy my car” websites but those prices are all wholesale.

8

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