Is this sketchy? Lease Buyout
02-26-2019, 11:48 PM
#16
Rennlist Member
The seller (lessee) is going to have to pay Cali sales tax on the purchase from PFS. Different states do different things with title documents (some don't even have title documents on motor vehicles), and I'm not entirely sure about California, but in most states that I'm aware of, a seller cannot sell a car without a title in the seller's name. That means that when PFS sends the title document to the lessee after the payoff, it will be in PFS's name with an "assignment" to the lessee, usually hand written on the back of the title document. The lessee must then take that title document to the DMV and apply for a new title document in the lessee's name. The tax will be collected by the DMV at that time. A new title document will be mailed to the seller in 4-6 weeks. Then and only then can he turn around and assign the title to the buyer.
If the above is all true, you're looking at 2 months minimum from the time you write the check to the lessee to purchase the car and the time you actually receive the title in order to register the car in Nevada. During that time, you will not have a temporary plate, so the car will sit in your garage for 2 months while all this plays out. And what if something goes wrong or gets delayed? Do you really want to risk it? These cars are for sale all over the place. Find another one that doesn't come with the potential for fraud, theft, or hangups.
If the above is all true, you're looking at 2 months minimum from the time you write the check to the lessee to purchase the car and the time you actually receive the title in order to register the car in Nevada. During that time, you will not have a temporary plate, so the car will sit in your garage for 2 months while all this plays out. And what if something goes wrong or gets delayed? Do you really want to risk it? These cars are for sale all over the place. Find another one that doesn't come with the potential for fraud, theft, or hangups.
02-27-2019, 01:06 AM
#17
Rennlist Member
What makes you think Nevada doesn't collect tax on used cars from private party sales?
BTW I worked for Porsche for 10 years, PFS will not sell the car directly to you unless you're a dealer, they will also collect the sales tax from the current lease holder when they buy out the lease.
Leasing's been around long enough that there is no beating the system. If the lease holder wants to purchase any car they're leasing at any time they're going to have to pay the balance of the sales tax uncollected.
BTW I worked for Porsche for 10 years, PFS will not sell the car directly to you unless you're a dealer, they will also collect the sales tax from the current lease holder when they buy out the lease.
Leasing's been around long enough that there is no beating the system. If the lease holder wants to purchase any car they're leasing at any time they're going to have to pay the balance of the sales tax uncollected.
02-27-2019, 01:14 AM
#18
Per the Nevada DMV website.
Nevada Dealer Sales - Taxes are paid to the dealer based on the actual purchase price.
Out-of-State Dealer Sales - An out-of-state dealer may or may not collect sales tax. Many dealers remit sales tax payments with the title paperwork sent to the DMV Central Services Division. See Out-of-State Dealer Sales for more information.
Private Party Sales, Family Sales and Gifts - These are not subject to sales taxes.
Sales TaxesTop ↑
See the Nevada Department of Taxation Sales and Use Tax Publications for current tax rates by county.Nevada Dealer Sales - Taxes are paid to the dealer based on the actual purchase price.
Out-of-State Dealer Sales - An out-of-state dealer may or may not collect sales tax. Many dealers remit sales tax payments with the title paperwork sent to the DMV Central Services Division. See Out-of-State Dealer Sales for more information.
Private Party Sales, Family Sales and Gifts - These are not subject to sales taxes.
02-27-2019, 07:41 AM
#19
Rennlist Member
Per the Nevada DMV website.Sales TaxesTop ↑
See the Nevada Department of Taxation Sales and Use Tax Publications for current tax rates by county.
Nevada Dealer Sales - Taxes are paid to the dealer based on the actual purchase price.
Out-of-State Dealer Sales - An out-of-state dealer may or may not collect sales tax. Many dealers remit sales tax payments with the title paperwork sent to the DMV Central Services Division. See Out-of-State Dealer Sales for more information.
Private Party Sales, Family Sales and Gifts - These are not subject to sales taxes.
See the Nevada Department of Taxation Sales and Use Tax Publications for current tax rates by county.
Nevada Dealer Sales - Taxes are paid to the dealer based on the actual purchase price.
Out-of-State Dealer Sales - An out-of-state dealer may or may not collect sales tax. Many dealers remit sales tax payments with the title paperwork sent to the DMV Central Services Division. See Out-of-State Dealer Sales for more information.
Private Party Sales, Family Sales and Gifts - These are not subject to sales taxes.
02-27-2019, 11:49 AM
#20
Tax is only based on bill of sale listed purchase price
and what you write on the back of title when you go to DMV to transfer to your name. Stealerships have people brainwashed to control the market.
The State will want their tax, I think it would be safe to say. As of now they would have only collected the amount based on lease depreciation.
The title is currently in Porsche Financial Service's name; whether it be titled in the name of the current lesee upon buyout, or of the OP, I feel it will be viewed by the DMV as a non-private party transaction and will incur sales tax upon registration.
The title is currently in Porsche Financial Service's name; whether it be titled in the name of the current lesee upon buyout, or of the OP, I feel it will be viewed by the DMV as a non-private party transaction and will incur sales tax upon registration.
02-27-2019, 12:25 PM
#21
There is no problem with it at all as long as the seller is legitimate. Porsche kind of forces this activity since they do not allow lease transfers (Ok they do, but they really don't).
02-27-2019, 07:02 PM
#22
If that’s the case then sales tax will only need to be paid by you, the lessee when buyout of leased vehicle is completed, as purchasing from a leasing company is not considered a private party sale. After you take cownership and vehicle is then retitled in your name, you’ll then be able to sell private party. As mentioned previously, it may take several weeks or more for DMV to process and issue a new title in your name, this will often deter or prevent potentional buyers from moving forward as they now have to wait and many move onto other vehicles readily available to both register and insure.
02-27-2019, 07:55 PM
#23
02-27-2019, 08:41 PM
#24
Rennlist Member
Porsche has an interest in controlling the price of off lease cars. Hence, they force the hand.
02-27-2019, 09:06 PM
#25
Rennlist Member
Right but I think since I would be dealing with PFS at all negates the private party aspect and Nevada is gonna want their money. That's why I think this whole thing stinks to high heaven but it's just crazy because I've bought a lot of cars and never came across something like this.
But I repeat my earlier suggestion that you find another car that doesn't have a potential for headaches like this one does.
02-27-2019, 09:16 PM
#26
Why would you be dealing with PFS? You write the check to the guy who has the car, and then HE writes a check from his personal account to pay off the lease with PFS. Nevada doesn't need to know anything about the sale except that you bought the car from a private party in California.
But I repeat my earlier suggestion that you find another car that doesn't have a potential for headaches like this one does.
But I repeat my earlier suggestion that you find another car that doesn't have a potential for headaches like this one does.