I have 6 months left on my lease, its leased through US Bank. I’m in New York City.
I spoke with US Bank, and they don’t have favorable terms when it comes to lease buyouts.
I desperately want to get rid of this car because I have my eye on another car and need to pull the trigger fast before it’s sold.
US Bank gave me the following breakdown of my buyout:
Purchase price $31,958 (this includes NY Taxes)
Purchase fee $350
Once they receive my payment, it takes approx 1 week for them to mail out a packet which includes the following:
Title
Bill of Sale
Sales Tax check for DMV
Here are my questions:
Does it really take just 1 week for US Bank to mail out the title?
Does the sales tax check have to be made out to DMV or can they make it out to me directly?
If I find a buyer for my car now, can I proceed with buyout, and just hand over the title, bill of sale, and sales tax check directly to the buyer?
I need to keep my plates, and registration. Can I transfer the plates to my new car while this one is still under lease? Drop it from insurance etc…
Are there any other fees I should expect to pay if I follow through with my plan?
Can I list my vehicle up for sale online as private owner, with the intention of buying it out once I have a committed buyer? or is this against the rules of leasing?
Since I will receive a check for sales tax that I cannot keep, I intend to pass this along to the buyer at his cost, since he’d have to pay sales tax at the DMV anyways…is this correct?
I greatly appreciate any guidance you guys can provide. Thank you!!
Youre confusing the sales tax here. You have to pay sales tax when you buy it out AND the person buying it from you has to pay sales tax when they buy it.
No, im saying that you will pay sales tax to the dmv for your purchase and then the buyer will pay their own sales tax to the dmv for their purchase.
When you buy from usbank, they will send you the title in their name with you listed as the purchaser. You willneed to take that to the dmv and have the title transferred into your name and you will pay tax. They will send you a new title that lists you as the owner. You can then sell the vehicle and give that title to the buyer, listing them as the buyer. Theyll take that yo the dmv to transfer the vehicle into their name and they will pay tax.
I’m still confused…
Does this DMV check identify the car being registered in any way?
I don’t have any need or intention to register the car after the buyout. Why would I if I have a buyer lined up? Why can’t I just hand over the title and keys to the buyer so he can go register it himself?
Because the title you get from usbank is a lessor released title that says theyre the owner and youre the purchaser. You need to transfer the title into your name, which triggers paying the sales tax, so that youre able to sell the vehicle.
You need a title that lists you as the owner for you to be able to sell it.
The whole point of that system is so that you cant skip out on the tax you owe.
The dmv check from usbank is to cover the tax owed when you purchased the vehicle from usbank. It has nothing to do with the tax the buyer owes when purchasing from you.
There are two transactions going on here and tax is due on them both.
Oooh I see what you mean now. Thanks for breaking it down like that.
Is there any clever way around this situation?
I desperately need to get rid of this car and need to pull the trigger on another car within next few days…
Unfortunately, your only real option other than buying it out and reselling would be to sell it to a usbank affiliates dealer that can buy it out at a reasonable price.
Does anyone have first hand experience with lease buyout from US Bank?
How long does it take them to mail you a title?
How long does NY DMV take to issue me a new title?
What other cost effective options do I have to get rid of this car ASAP?
Start with the dealer that leased you the car. They may want the vehicle for their inventory.
Correct. You have to pay tax and register in your Name, then your “lined up buyer” also needs to pay tax. What it sounds like want to do is called “title jumping” which is explicitly illegal.
Either a dealer that has a good relationship with US Bank can maybe help you (probably for a fee), or your idea will cost about $3k more than you thought to account for both you and your buddy having to pay double tax on the same car.
Sold my us bank lease which was a wrangler to a toyota dealer and bought a toyota from them. Toyota and jeep dealers often do us bank. Call around and ask.
