End of Lease. - Purchasing it and Selling it to family Member
I am in the last month of my lease of a 2020 Alfa Romeo with less than 10,000 miles.
I live/reside in California.
I would like to purchase this car at the buyout price ($29,000) and then immediately sell/give it to my parents who reside in New York. I will be shipping it there.
I have contacted Ally Financial and I am unable to transfer the lease at any time.
So, the only option is to purchase it and sell it.
My question is the sales tax situation.
My hunch is I will have to pay California sales tax on the purchase at the buyout price. And then my parents will have to pay New York sales tax on the purchase/transfer.
The deal still makes sense b/c of the equity situation.
But is there a way to minimize this tax so that it is taxed once? Any direction of where to start on this will be very helpful. CA DMV ? NY DMV? AAA? Alfa Dealership in CA?
What you want is a Lease buyout facilitator. There are companies that facilitate the entire buy out process for you including handling the DMV paperwork for you. If you want to pay in cash then you would remit those funds to the licensed/bonded & insured “dealer” who would then pay-off your vehicle on your behalf with those funds and they would then receive the title from your lessor and begin processing ownership title work with the DMV under your family members name rather than your own and voila, you dont have to pay the taxes twice in two separate states. The new Title and Registration would go directly into your family members name rather than yours right at the lease buyout.