LS430FL

Hello all,

I am looking for suggestions to make this as pain free as possible. I have a family member out in California who has a 2020 RX lease that is ending. She's got less than 4,000 miles on it. I am in Florida and would like to purchase her car as the buyout was prior to crazy covid prices and therefore is thousands less than the local lexus dealer is currently selling them for. What is the easiest way to get this done? I would be shipping the car to FL from CA. Could I avoid paying CA tax by providing a bill of landing from a shipper and pay FL tax when I register it? I have thought about assigning her current lease to me and then taking care of everything as if I am the Lessee but I also lease a 2020 NX and my contract prohibits assignments which is surprising as there are lots of Lexus leases on swap a lease so I am not sure how they get around that provision.
Any help or suggestions are appreciated.

geko29

I believe TFS no longer allows third-party buyouts. If so, this would have to be two transactions--her buying out the lease, and you buying the car from her--and obviously that would mean CA sales tax. The two of you should call TFS together and find out what your options are.

Boomin

Wow new one for me, I don't have direct advice but to get it.
Sounds like a jewel.
What I want to add is I recently saw some dirty dealership adding fees to end leases which are bogus.
Here in Florida.
So just a heads up.

Boomin

chuuck1e

In California, the lessee can buy out a leased car, without paying sales tax, if the lessee then resells the car within 10 days. This exemption is discussed in this document starting at the bottom of page 2. https://www.cdtfa.ca.gov/formspubs/pub34.pdf

A long discussion of this exemption is available here. https://forum.leasehackr.com/t/calif...e-buyout/88703

AMIRZA786

The third party buyout not being allowed that you mention was probably not in the original contract, so this most likely doesn't apply. I heard Tesla also is no longer allowing buyouts, but for those who leased before this change that does not apply

TriC

This looks like the way to do it.

OP will pay sales tax only to Florida.

situman

Your family member can deal directly with TFS/LFS. You can skip the dealer for the buyout. Another way is to take over the lease.

SW17LS

TFS still allows third party buyouts...SETFS does not, it just depends on who your lease is originated through

ST430

I've helped others out in these scenarios and the best way to deal with this so you won't get taxed 2x is for the other party to assume the original lease. They can buy it at least end to your contractual price and you negotiate whatever amount goes to you ..

patgilm

I wonder if it depends on the lease. My BMW that I leased stopped allowing lease assumptions halfway through my lease. Didn’t matter that I entered into it before the change.

AMIRZA786

​​​​​​ It's a binding contract. The only issue is if the contract states you have to go through arbitration, then they have the upper hand and you are probably screwed

JeffKeryk

If you can get that car for the lease buyout, you are probably ahead of the game in this market even if you have to pay the tax. But adding in the delivery... It is not gonna be that great of a deal.
It sounds like taking over the lease makes sense if it save the CA tax. Good luck!

Mike728

Just something to keep in mind. Many dealers are playing games with this during these times. A few months ago one of our daughters had an expiring lease on her Hyundai. The buyout price was $6k below trade-in value at the time. The dealer was insisting that she had to buy it back from them after they CPO'd it for a $2k+ fee. I looked at her contract and saw no wording that stated it had to go through a dealer to purchase, so I asked her to get a loan from her bank. The bank wrote a check to the leasing company and that was that.

situman

For lexus you dont have to go through the dealer. Just the lending company.