Anyone ever assume someone else's lease? Tax questions in here. (1 Viewer)

[fantasycurse42]

Assume I'm registering a car in NJ for this question.

Hypothetically, I'm going to assume an auto lease from someone that has the car currently registered out of state, the current payment is $10 a month with 24 months remaining - am I paying tax on $240 to the NJ DMV? Is this being paid upfront? Can it be rolled into the payment?

Google gives me multiple answers, but I think I'm paying NJ sales tax per month on top of the $10 to the leasing company... I'm just not positive - anyone have any experience with something like this?

 

[Juxtatarot]

I'm not familiar with assuming a car lease (honestly this sounds like too much of a hassle for the lessor -- a lot of them won't even sell the car to a 3rd party) nor NJ sales tax rules but my first guess is this would not be sales taxable since the legal owner of the car remains the lessor.

 

[fantasycurse42]

I'm not familiar with assuming a car lease (honestly this sounds like too much of a hassle for the lessor -- a lot of them won't even sell the car to a 3rd party) nor NJ sales tax rules but my first guess is this would not be sales taxable since the legal owner of the car remains the lessor.

It's fairly common... sites like swapalease or leasetrader. Most companies allow for the lease to be transferred for a fee of like $200-$500 depending on the bank.

im looking for something short term 18-24 months and this is easiest & cheapest.

 

[Juxtatarot]

It's fairly common... sites like swapalease or leasetrader. Most companies allow for the lease to be transferred for a fee of like $200-$500 depending on the bank.

im looking for something short term 18-24 months and this is easiest & cheapest.

Thanks.  Learn something new every day!

 

[fantasycurse42]

Thanks.  Learn something new every day!

For someone looking for a high mileage lease, these sites can offer amazing deals.

Think about it like this (1 of a million different scenarios):

I'm a car leaser, I put $6,000 on the cap cost reduction to reduce my lease payments - I've had the car for 14 months and I never use it (5,000 miles so far) and no longer want to pay. I search for someone to take my lease.

As a consumer shopping say this lease has 25 months left & 34,000 miles left. I'm getting a car that is going to be fully warrantied for my possession of it, 17,000 miles a year, a shorter term, & minimal upfront costs. 

Personally, I'm in a situation where a car I really like won't be available until late next year, and price prob won't come down for a year after that. My current lease ends in 3 months, an 18-24 month lease is what I need, while also presenting lower costs. 

This is my first experience with this, but on paper it seems like a huge win... just trying to understand all costs beforehand, taxes are the last ones I'm thinking about.

 

[sbonomo]

These seem to be be few and very far between no?  For a while there I was looking for a short-term lease on a few cars I was considering buying.  After transfer fees and idiot owners it was a waste of time to try and find something I liked.  Good luck though, I have nothing to add to your original question.

 

[KCitons]

I've never assumed a lease, but I have leased half a dozen cars in the last 20 years. (currently lease our Forester).  Here in Nebraska, the sales tax is factored into the monthly lease payment. Other fees, like wheel tax (sucks), title, and license plate are paid directly to county when I register it at the DMV. Since the sales tax would need to be paid to the new state and could be a different rate, I would assume there needs to be an adjustment to the monthly payment by the company that owns the lease.