HELP---'SELLING' a leased vehicle to a 3rd party

[MAPC]

Hello-
I am trying to SELL my leased vehicle to a third party. I have several people that want it.

I cannot figure out how to sell it to them without double sales tax. BMW will only release to me or a dealer. If they release to me, I have to pay sales tax and then the new buyer has to pay sales tax.

Is there anyone that knows of a way to deal with this in the state of CA that DOES NOT require double sales tax?

THANK YOU

[JCL]

I would expect that sales tax will be collected twice, since you are trying to sell something that you don't own.

Why not turn it in and tell your friends where it is if they want to go to the dealer and buy it?

[MAPC]

Plan is to sell BEFORE the end of the lease.

I posted this as there were some older posts on here and on Bimmerfest that say that you can have a dealer process it (legally) so that BMW transfers to them and they, in turn, transfer to the new owner.

I cannot find a dealer that is willing to do this so I was looking here to see if anyone had ideas.

[MAPC]

Found this on the State of CT DMV Website. Now the challenge will be to get them to acknowledge it - which to date they are not willing to do.

Revenue and Taxation Code
Section 6277 Vehicle Use Tax Law
There shall be a presumption that a transfer of a vehicle to a lessee by a lessor, as defined in Section 372 of the Vehicle Code, was a sale for resale if the lessee transfers title and registration to a third party within 10 days from the date the lessee acquired title from the lessor at the expiration or termination of a lease. The presumption may be rebutted by evidence that the sale was not for resale prior to use.
It is the intent of the Legislature in enacting this section to recognize the delay in processing documents when a lessee wishes to transfer title of a leased vehicle to a third party at the expiration or termination of a lease rather than acquiring a vehicle for his or her own use.
This section does not provide an exemption for any use by a lessee after the expiration or termination of a lease.
(Added Ch. 1284, Stats. 1976. Effective January 1, 1977.)

[TorontoKhan]

Can you not transfer the lease to them and pay the lease transfer fee etc., and then they pay the remaining monthly payments of the lease and at the end of the lease, buy it right out?

[ard]

I will reply to your PM. You should talk to BOE who administers the tax. DMV are morons to begin with, and just collect it for the BOE.

By the text you found, there is no tax due when YOU as the leasee, buy it AND sell it within 10 days "of receiving the title". This is California law. (remember too, this is a USE tax, not a SALES tax)

Talk to BOE first. DO NOT go to the DMV until the buyer has bought it, do it all at once- with documentation proving it was sold within 10 days. But see what BOE says first.

A

[ard]

I just talked to DMV headquarters- not a local office. They said, unequivocally, "no use tax as long as it is sold within 10 days of receiving title from the lessor". It's in the DMV operations manual, Chapter 28, "Use Tax Section"

GL

A

[jspdr]

I don't know about the law in CA, but here where i live buyers pay less sales tax if buy from a private party than buy from dealer, if that is also the case in CA than maybe you should consider buy out your lease and pay sales tax for the remaining balance. Make a deal with the buyer that he or she should reimburse you for the sales tax you pay because the buyer will pay less sales tax when transfer title from a private seller.

[MAPC]

I finally got to a better person at DMV and they confirmed. NO TAX TO ME, ONLY TO NEW BUYER. Deal is about to be done!

[Alan Smithee]

MAPC,

If you could post again once successful with details of the process, I for one would greatly appreciate it, as I am considering doing the same in CA.

AS