SETF buyout headache

Ask the Hackrs Buy/Finance
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1

I am almost at the end of my lease with SETF and would like to purchase the vehicle since it’s worth more than the RV and I’m going to turn around and sell it. I am trying to avoid the dealership and just obtain financing on my own, but I’m running into SETF customer service folks who are clueless.

The vehicle is currently in my name only. I would like to add a co-owner when I finance and called SETF about this. I was told it didn’t matter. The lender I am using has just told me that it DOES matter and can’t be done that way and I have to go through a Toyota dealer to obtain financing if I want to add someone to the title. This is apparently specific to SETF and not TFS. As many know, I also can’t trade it in at another dealer and take advantage of the equity because of SETF’s rules.

Any hack/insight to make this easier? It shouldn’t be this hard. Thanks!

2

What it sounds like you are trying to do is buyout and sell to another party without incurring double tax.

AFAIK all lenders prevent this not just SETF as it’s a State tax issue.

3

Why would you do that when your plan is to just sell it?

4

I’m guessing he is trying to sell it to family member who doesn’t have good credit to qualify for a car loan. He will stay on the loan.

5

Nothing to do with tax. It’s about needing a different vehicle and wanting to get my equity out of it instead of just turning it back in.

6

To the State of NC, it’s all about the tax, they don’t care about anything else. If the car is bought out as a Lease, Tax #1. If someone else is on the registration other than the original person on the Lease…Tax #2…it’s all about tax.

7

Again, the tax is not the issue here. It literally has nothing to do with it. Not on my part, not on the state’s part, not on SETF’s part.

8

Well I am answering your question, why won’t SETF do this, because it’s a way to circumvent state tax, and the state would smack them hard for allowing it.

Note : There is 1 way around this, if the 2nd person on the loan lives with you such as a wife / daughter.

9

No, it’s not. Thanks for playing.

10

You posted to get feedback and insight on your situation. Someone is trying to explain a potential reason why the policy exists and you reply with an attitude. If you’re not willing to accept feedback (you don’t have to agree with it), then don’t post.

He is not saying that you are trying to circumvent state tax. He is explaining that a reason why SETF and/or states may not allow the addition of new owners during a lease buyout is that SOME PEOPLE may do that to try and circumvent paying sales tax. He’s not accusing you. He’s providing insight that may help you decide your next steps in the process.

Good luck.

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11

Except I didn’t ask why, and I specifically stated this is an issue with SETF and not other lenders and has nothing to do with potential tax implications. He had no actual advice to give, just made an assumption and ran with it.

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