i have asked this question before, but want to clarify it agin as it may actually happen..

i have a lease with PFS. my friend wants to buy it. when i spoke to PFS, they won't release the title directly to him since i was the original leasee. so my friend will actually pay porsche, but the title will be release to me. i will then transfer to my friend. so the quesions are:

1. do i need to pay tax for the transfer from porsche to me, and then does my friend pay another tax when title transferred from me to him?? porsche told me that tax should only be paid once if we transfer it to my friend within 10 days of me getting the title (in california). i have previously asked this question, and many people have agreed on that. anyone knows for sure?

2. if my selling price to my friend is slight lower than my buy out, will the tax be assessed on the buy out regardless?


thanks in advance.

johnny

 

Johnny,
if u buy stuff from me do i need to pay tax? buyer always pay tax.

i'm not sure how the detail works but if i were u i'd get the money from ur friend first go pay off the car. when the title comes u report the final selling price to DMV for less to save ur friend from paying the non-sense sales tax. sorry maybe this is not the right thing to say it publically but i think i have the right to say it. i've been paying the stupid sales tax for over 100k...

 

arling, of course the tax needs to be paid. but the question is how many times. since my friend is the one buying the car, he should pay for the tax. but since PFS will only release title to me, this will constitute 2 separate transfer, and possible tax x2. keep in mind that my car is a lease, so no tax has been paid on the buy out. so if i would to buy the car first, i still have to pay tax. then taxed again when i sell it to my friend (even if at low sales price).

i did this once with my old M3. chase released the title directly to the buyer, which only consitute one transfer. but porsche refuse to do it that way! they kept telling me that the multiple title transfer results only in one tax, if done in 10 days, but i can't confirm this. DMV website actually state that mutliple transfers prior to reporting to DMV will result in multiple fees.

what a mess. should just keep my car. by the way, why you on the internet at this early hour? i would be sleeping in the CGT if i were you.

thanks for the help.

johnny

 

The DMV may be sayiing the same thing as Porsche, key words "prior to reporting". But I would make sure that the $ sales amounts are exactly equal, otherwise they may take the view that there are two different transactions, (as opposed to a pass thru') and therefore 2 sales tax amounts due.

Another way to do it is visit your local friendly Porsche Dealer and have him do the paper work..pick up an extended warranty at the same time. Pay them a small gratuity and avoid the headache and hassles you're experiencing.

 

Only need to pay tax once if the transaction is done correctly. We (my company) do this all day long - we finance off-lease vehicles for people. and effect title transfer Does not matter if it is "purchased" by the original lessee (you in this case) or a third-party (buyer in your case). Tax only needs to be paid once - true in CA and every other state in the nation. Tax amount will be based on the amount Porsche puts on the Bill of Sale to you as the Sales Price.

 

Leases are altogether different than non-leased cars.............From what I understand, if you do not trade your car into a dealer, you will have to pay tax as Porsche financial owns the car, not you...Therefore since you neevr paid tax on the leased vehicle, when you payoff the lease you owe the tax... In addition, when your friend registers the car, he will have to pay state tax. This is ALWAYS true for leases...So, my suggestion to you is trade your car to a dealer and have your friend buy from them or you will pay tax..........

Lou

 

lou, you have brought up the issue i was most fearful for and makes the most sense. but having talk to porsche financing, and even the dealer, it sound like it may not apply since the two transactions will take place at one time. and the check to porsche will come straight from the buyer.

truth is..... i have no clue. everyone has their own fact, and all sound correct.

will call porsche again... it seems like the sell will happen.

 

I asked my friend who's a dealer. Also, MarkL from the board is selling his car and he indicated he had to trade his car to the dealer first before he sold to a third party, otherwise, he would have to pay tax....... PM MarkL........


Lou

 

thanks lou.

what a pain in the ***. just got back from the dealer. they say they would be more than happy to help with a small fee of 1k. they will basically flip the title for us with 1k plus safety and smog.

but this is only possible with purchase another one. part of me had plan to not buy one for a little while, since my friend is keeping his TT at my house. i didn't ask if they would be willing to do it without a new car purchase!

i will pm MarkL and will talk to porsche financing on tuesday. i spoke to someone who actually did it privately and only paid tax once.

the scary thing is that there is no guarantee. if i get to pay the tax, i might as well as buy another one with the 8% here in california.

 

you are selling your 4s?

 

definitely thinking about it, now that i am storing my friend's TT and can drive it anytime. also drove the 997S and may consider getting that once the TT is gone.

how's the car?

 

997S with aero kit looks so hot!!and i heard that they handle better? i like the interior of 997 tho

i drove my car yesterday in my neighborhood(still kinda hard for me to drive it, my knee was shaking..haha..good PT for me)..the car is indeed FAST!!hah

 

You won't have to pay tax to PFS with your payoff if your car is currently registered in California. You'll get the "pink slip" from PFS, you sign off and your buyer will pay the sales tax when he gets the car registered in his name.

Btw, this is not always the case with PFS -- it depends upon the State in which you reside. For certain States, PFS will collect the sales tax on behalf of the lessee's State.

 

thanks jack,

finally something i like to hear!! hopefully you are right.

johnny

 

I just did this last month on a Turbo lease -- I doubt they've changed their policy for California lessee's since then.