I'm selling my Turbo this weekend. I have it leased through Porsche Financial. The way their buyout works is, even if the buyers bank makes the payment, they are, in a sense, selling the car to me. I receive the title and sign it over to them.

I just realized that since this is how it works, WILL I HAVE TO PAY SALES TAX on the car? I know that they will, but the title is merely passing through my hands.

I also heard that if I sell to a dealer, I dont have to pay sales tax. is that true?

 

Sellers dont pay sales tax, the buyer will. The new buyer will pay tax on it thru his or her contract with the bank.

 

If you can get a dealer to handle the transaction - they buy the car from the leasing co. and then they become the seller to your buyer. You will pay no further sales tax. If you have a good relationship with a dealer (any dealer) they will only pass along their direct costs....maybe 1%.

 

You will pay sales tax as you are buying it off lease from Porsche. Technically your the buyer in their eyes.

You will then sell it and the new buyer gets to pay tax again! Lovely.

Failin that what HotHonda says is the way to go if you can pull it off. If you have a dealers license you can avoid paying the tax.

 

Basically you buy the car from the leasing company and resell it, they won't sell to a 3rd party buyer. You pay sales tax but the buyer does not if the transfer is handled within 10 days. Work out a deal where the buyer pays tax up front. The last time I looked into this, you get 10 days from the day you receive title in the mail but you should verify that.

 

Leased cars are traded in every day...the dealer who's taking the car in trade pays the leasing co....The leasing co could care less as long as they get a dealer resale tax # & there's no tax- period! Just get a dealer to help you out...very simple transaction.

 

I called AAA and they said I have 10 days to transfer the car to the new owner to avoid paying sales tax. The buyer obviously pays sales tax on the car.

I've heard about 10 different versions. I hope what AAA told me is true!

 

If you sell to a dealer, you don't pay sales tax. It's much easier that way. If you want, I can help you. I will do it for a small fee. PM me if you are interested.

 

I would feel best going through a dealership. It's not just an issue of the tax .Since the car is leased (and a rather expensive item) it places an authorized Porsche dealership in charge of documenting a car that was never owned (and titled) either by you or the other party.

The dealership has something to gain too in that they can get a fee for the paperwork and they might even get a unit credit in the sale . Plus the new buyer can have the peace of mind that he bought a car from that dealership in case there is any problem .

In short, even for you, the day you sell the car your ---responsibility with any aspect of it is completed .

 

Yo, I did that once thru a dealer. I used a dude like gotboost to help broker da deal, much easier.

 

I sold a leased X5 a few years back before the end of term. Not a big deal at all. No tax to you, only the buyer.

This is actually a good way to go if your lease is coming up and the car's value is above payoff. Got my entire lease down payment back on the X5 deal above.

 

Most lease companys will have a document for 3rd party transfers that they can send to you. You should call Porsche and see if they have it. I have done it many times before but you do not need to worry about a direct 3rd party transfer since you do have 10 days to avoid taxes.

 

is this sold ? what was the story ?

 

Oh yes because it's considered a "sale"!

Remember, we have a great deal of debt here to cover!

A dealer buys a car w/o paying sales tax as long as it remains in his inventory or passes to another dealer

 

I cant belive after all of your work and mod's you are getting rid of it ?

Good Luck
Gee-Bee