Want to buyout my Hyundai Tucson Lease in NJ and transfer to a sibling

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1

To break it down real simple.

My wife’s brother(my brother in law) had a lease with a 2019 Hyundai Tucson with 14,000 Miles which just ended. The buyout price was about $16,900 plus a few dollars in tax.
I told him i wanted it. So i made the final payment and now they released the title and the Bill of sale documents. While i have both of these documents in hand. They both have his name on it because Hyundai motors doesn’t allow for 3rd party buyouts. So i had no issue buying out the car first and then wanting
to transfer it to my name.

Now on the title, Hyundai filled out partially with his name as the buyer, while the co buyer is still open which i can technically fill my info. But i see no reason to leave him on the title as i would assume that would require him to have insurance on the vehicle being that his name is on there?
Or can i just leave his name on the title and put my name as a co-owner and then have him sign a paper or make me a document stating that hes allowing for me to register the vehicle and be a co owner(buyer), would that require for him to go down the Motor Vehicle Center?

On a side note, Hyundai has a 10 year/100k powertrain warranty for the 1st owner while a 2nd owner will only get 5yrs and or 60k miles. Which ever comes first.
So, dont care too much about that, but if theres and easy way to preserve that i would glady do that.
(There was an old thing back in 2003 or so that immediate family members would still be counted under the 1st owner. But that doesnt apply anymore.)

As well when requesting the title they allowed for me to input my name only if he was put in jail, passed away or one of those such situations. But thank god all is well. So thats not much of an option.

I Mentioned he’s my wifes brother (borther in law) as my wife still has her maiden name on her license which is the same as my brother in law, same last name on all the documents. Not sure if that would be of any help.

And to avoid paying tax again in New Jersey(as i paid when i bought out the vehicle)if i would register it in my name i would just claim it as a gift(as it can be done as its under 17k.)

So with all that stated. What’s my best and easiest way to go about transferring the vehicle to my name? While leaving him(Bro in law) out of it. As he doesn’t want to be busy with this. As he did me a favor and gave it to me vs selling it for a little profit.

Can I just take the title with his name on it and go to the DMV with a letter or make my own bill of sale with him stating that he gifted me/his sister the car?

Wouldnt mind some input to go about this. Thanks guys.

2

You might be on the hook.

What you should’ve done was:
Ask a Dealer to Facilitate this (The Dealer buys it from you and sells it to your bro).

They will probably ask for a fee ($500??) as this is work for them.

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3

At this point, the proper action is for you brother in law to complete the purchase by registering the title in his name. He would then transfer the new title to you. If tax is due or not would depend on if NJ has an excemption for sales tax on gifts between family members or not (so he may need to gift it to your wife rather than you).

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4

At this point whats my best course of action?

Not sure in regards to which part will i be on the hook? Needing for him to register the car(thought its under his name already) i guess just get a new title and then me buying?
Little bit of a problem with that as he doesnt have the time nor patience to waste time with the dmv. So …

And in regards to tax i can just gift it which is no issue in NJ.

5

Doesnt state much on the NJ MVC website.

Vehicles Exempt From Sales Tax
There are several vehicles exempt from sales tax in New Jersey. To claim your exemptions you must visit a motor vehicle agency. If you wish to claim exemptions other than the ones listed below, contact the MVC Sales Section of the New Jersey Division of Taxation at (609) 984-6206.

Sales Tax Exemptions

All it says is

Exemption #6 –

Vehicle was a gift (*see Special Conditions below)

*Gift: If the vehicle is a gift, the sales price must be noted as “GIFT”. If the information appears to be changed or altered, additional documentation may be required by the Motor Vehicle Commission.

6

Double tax, I am not advising the ‘Gift Route’ as it is illegal if money has changed hands, that’s all on you.
Regarding the warranty, the Dealer could’ve done a CPO on it as it gives you the original warranty 10/100

Basically you went a different route and lost a lot of convenience (warranty and double taxes)

7

Not the end of the world having to pay $60 or so to get a new title.
(Just need a figure out a way for me to do that for him.)
Though i wonder if theres what to do to add a co-owner and solve all issues.
Unless you’ll need the buyer and co-buyer to both be there?

8

Not so worried about the tax. Its not that we are two strangers.

#1 Its a sibling, worst case i register it in my wifes name who’s his sister.

#2 My wife made the payment directly from her bank account, even though the lease was in his name. So taxes and buyout was paid by her.

10

Cant i be his POA( Power of Attorney).
I’ll get him to sign the form and get it notarized.

And i do everything on behalf of him, and then register the vehicle in mine name or worst case scenario have to come back agian after he fill’s out the new title?

At this point i’m just trying to make the process the most straightforward it can be.

11

If there’s absolutely no way he’ll take a trip to the MVC with you (which would have been the quickest and easiest), then fill out the form on the MVC website which allows a third party to register the car on your behalf.

Fill it out such that you or your wife are the rep acting on his behalf. You or your wife take that form plus all other paperwork to register the car in his name.

Once the car is registered in his name, a title will be issued in his name on the spot or by mail.

He will sign that over to your wife as the next buyer and it should be tax exempt and on your second trip to the MVC the car will be officially registered and titled in your wife’s name.

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12

Thanks for the reply, very clear and to the point.
You actually have what i shall do, vs all previous responses what i could or should have done.

Thanks.

Though any chance they’ll let me fill out the new title on the spot with all his info or will i need to get it and come back again? (Though not the end of the world if i need to come back again.)

13

If he gives his sister POA beforehand, then she can.

However, if they object to this for some reason then you’ll have wasted the new title and are back to square one of titling it again in his name.

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14

Unless I just take it home, the new title and have him fill it out and bring it back.

The only thing in question is, can I be his POA and be the person buying the vehicle?

15

Anyone can be POA. However if you’re the buyer IDK if your purchase will be tax exempt.

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16

Is one not allowed to gift a vehicle to a relative?
Not sure why that would be an issue.

I’m entitled to give and get gifts, and depending on each state what the cap is before it would be counted towards your lifetime gift amount.

17

Is it a gift if you paid for it?

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18

The Bill of sale from Hyundai shows he made the payment and on the title shows my Brother in law paid off the full amount for the vehicle and applicable sales tax of 1k+. Doesn’t show nor say anything about me or my wife making the payment for the payoff/buyout amount.

But then again should you say that I paid off the vehicle, then i already paid the appropriate sales tax required.

19

I am not a lawyer nor do I pretend to be one on this forum. I do not know what would or would not fly as a “gift” to you under NJ law.

My suggestion to you is limited to what I said above; to use the right paperwork at MVC to manage the constraint that your BIL refuses to go with you in person.

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20

Be careful that you dont confuse poor documentation of tax fraud with something not being tax fraud.

There was definitely an exchange of money for property here, and if all you have to do is properly document it as a non-taxable event to be above board… why would you not?

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