Date: Mon, 13 Sep 1999 17:57:30 -0400 From: Gerard <g.kielynopsamdnet.att.net> Subject: Re: Liquidating a Lease: used to be 1999 9-3 lease question
Kalman, No, you are not getting away with anything. I am just arranging for a third party to purchase a vehicle from a finance company. In NJ it is up front and legal. Gerard Kalman Rubinson wrote: > johnmorgannopsameja.com wrote: > > Thanks for the advice. I was wondering how to structure this. I > > thought I would call Subaru Credit Corp. and ask them but I think I > > will try your approach first. > > > > Have you had any resistance from a buyer who wants the title papers in > > hand? I would wonder about that. > > BTW, just because you never take title and the state is unaware of your role > does not mean that you are not legally responsible for the sales tax. You are > just getting away with it. > > Kal > > > Thanks! > > > > In article <37DAEBEA.FDCDD30Enopsamdnet.att.net>, > > Gerard <g.kielynopsamdnet.att.net> wrote > > > > > John, > > > > > > One bit of advice. I typically try to sell my cars when they come off > > > lease if I think I can come out ahead. If you sell your Subaru, you > > need > > > to think about how you are actually going to do the deal. What I've > > done > > > is require a certified check for the full amount. As a receipt for > > the > > > check, I give the buyer the car. I then overnight a check for the > > residual > > > to the lease company along with a request for them to transfer title > > to the > > > buyer (I've done this with Subaru of America). That way I pocket the > > > difference between the selling price and the residual and, at least > > in New > > > Jersey, I escape the 6% sales tax on the residual, since I never > > owned the > > > car. I merely sold the option to buy. It works great. > > > > > > If one understands how to properly construct and manage a lease, it > > makes > > > the most sense. Never own a depreciating asset. > > > > > > gerard > > > > > > johnmorgannopsameja.com wrote: > > > > > > > In article <uBGc7V7##GA.307nopsamnbbsa05>, > > > > "Kenneth H. Yoon" <kenyoonnopsaml.msn.com> wrote: > > > > > I don't understand. If the actual market value of the car at > > lease- > > > > end > > > > > doesn't equal or exceed the vehicle's residual value, then the > > lessee > > > > needs > > > > > to make up the difference? > > > > > > > > > > This doesn't seem to make any sense, except as a good way for > > GM/SAAB > > > > to get > > > > > itself sued in a huge class-action. > > > > > > > > > You are absolutly right. At the end of the lease, you turn the car > > in > > > > paying for any excess milage and damage beyond normal wear and tear. > > > > Period! The lease has a guarenteed residual value which is the > > price > > > > used in computing the lease payment based on a prediction of actual > > > > market value at that time, and it is also the price at which you can > > > > buy the car regardless of that market value. > > > > > > > > For instance, I just got a new 9-3 on the lease deal, but I also > > have a > > > > Subaru Outback a lease on which expires November 2. The residual on > > > > the Outback is approximately $18,000, which is the price I can buy > > it > > > > for up until November 2, the day I must return it to the Subaru > > > > dealer. But the Blue Book retail value is about $21,500. So > > between > > > > now and November 2 I am going to try to sell it taking whatever I > > can > > > > get over $18K, which is money in my pocket. If I don't sell it, I > > will > > > > just turn it in. > > > > > > > > Any takers? > > > > > > > > Sent via Deja.com http://www.deja.com/ > > > > Share what you know. Learn what you don't. > > > > > > > > > > > > Sent via Deja.com http://www.deja.com/ > > Share what you know. Learn what you don't. > > --
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