Lease question
Thread Starter
Junior Member
Joined: Feb 2002
Posts: 65
Likes: 0
From: IE
Mercedes 2005 CLK55
Lease question
I am in the process of selling my car to a buyer in order to get out of my lease. MBcredit tells me that all I pay is the payoff amount which does not include tax. The tax is collected when the title is transfered by the dmv. So now my question now is ... who should pay the tax? MBcredit says it doesnt matter who and would not give a suggestion.
Does the buyer have any type of warranty after he buys my car?
Does the buyer have any type of warranty after he buys my car?
Member
Joined: Dec 2002
Posts: 81
Likes: 0
From: Vero Beach, FL
2019 E53 Cab
I can tell you, from my experience in Florida, the leasing company collects the tax and remits it to the state. When the buyer goes to the dmv to transfer title he/she must bring the bill of sale from the leasing company. This proves that sales tax has been collected. Any additional tax must be paid at registration, if a different county has a higher rate (usually $50).
From the situation you explained, the State of Florida would deem it as two sales (Leasing Co - You; You - Buyer) and collects the tax twice. Most leasing companies allow you to seller their car to a third party. This gets you out of the middle and avoids the double taxation. However, it has taken 3-5 business days to get the title and bill of sale to the buyer for them to register the car. Some buyers don't like to wait once they paid the money.
Good luck....
From the situation you explained, the State of Florida would deem it as two sales (Leasing Co - You; You - Buyer) and collects the tax twice. Most leasing companies allow you to seller their car to a third party. This gets you out of the middle and avoids the double taxation. However, it has taken 3-5 business days to get the title and bill of sale to the buyer for them to register the car. Some buyers don't like to wait once they paid the money.
Good luck....
