End of Lease Purchase in NY and transfer to brother

[Nemco]

Information needed please!

My 2013 135i is nearing it's lease end. It's only got 11,000 miles and so the residual purchase option is a pretty good deal. My brother is interested in buying the car - he's actually been using it regularly for a few months.

My question is can I buy the car and transfer the title to him without him having to pay NY sales tax, which I will have just paid? Or do I need to convince the dealership to sell it to him directly for the residual option price, which is really only contractually entitled to me?

Thanks in advance for any advice you have!

[IEDEI]

Originally Posted by Nemco

Information needed please!

My 2013 135i is nearing it's lease end. It's only got 11,000 miles and so the residual purchase option is a pretty good deal. My brother is interested in buying the car - he's actually been using it regularly for a few months.

My question is can I buy the car and transfer the title to him without him having to pay NY sales tax, which I will have just paid? Or do I need to convince the dealership to sell it to him directly for the residual option price, which is really only contractually entitled to me?

Thanks in advance for any advice you have!

why don't you just transfer the lease over to him before it runs out....that way HE gets the residual price at the end and does the buy out. The lease transfer can easily be done by BMW for a small fee. Definitely easier, IMO. If you buy it out, then he will then have to buy it from you and most likely he will have to pay sales tax when he registers it in addition to the sales tax you will have already paid (so 2x sales tax).....this way only he pays tax.

[Nemco]

Originally Posted by IEDEI

why don't you just transfer the lease over to him before it runs out....that way HE gets the residual price at the end and does the buy out. The lease transfer can easily be done by BMW for a small fee. Definitely easier, IMO. If you buy it out, then he will then have to buy it from you and most likely he will have to pay sales tax when he registers it in addition to the sales tax you will have already paid (so 2x sales tax).....this way only he pays tax.

Thanks for the response - I'd thought about that, but it wasn't a great option - along with the $500 BMW fee to transfer, NY makes the transferee pay sales tax on the remaining value of the lease (one of the few states that does that), even though the original lessee pays all of that tax upfront.

Also, now I'm within 6 months, so can't do the transfer anyhow.

[dtla1]

There is a similar thread around here from a few months ago. If I remember correctly, there are a few states that will allow you to only pay sales tax once if the sale is made within X amount of days from purchase.

[gregthegr8]

Originally Posted by dtla1

There is a similar thread around here from a few months ago. If I remember correctly, there are a few states that will allow you to only pay sales tax once if the sale is made within X amount of days from purchase.

Ya, I've done it before and at least in CA if you transfer within 10 days, you don't have to pay the tax. NY laws tend to be weird though and I was trying to find a NY equivalent to the CA thing.

In the alternative, ask BMW because usually when you buyout the lease you may be able to CHOOSE to either pay THEM the tax or pay it directly to the DMV. In that way, when you transfer title to your brother, he may be able to just be the one who pays the tax and its paid once. You should ask either the DMV or perhaps someone at AAA if you're a member as they handle all those transactions here as well and should know. The BMW end of lease people probably know as well.

Or heck, when you send in payment, you may just be able to ask for the title to be sent in his name. Not sure.

Remind us though, which one has the 313s?! I know you put 313s on your mineral grey, but then think you bought an IS as well? =P

[Hankdoll]

In California there is no tax on title transfers to family members. NY may have the same rule.

[TheCaptain]

Originally Posted by Hankdoll

In California there is no tax on title transfers to family members. NY may have the same rule.

NY definitely does have the same rule, I have used it myself. Buy the car yourself and transfer the title to him sales tax free.

[Nemco]

Originally Posted by TheCaptain

NY definitely does have the same rule, I have used it myself. Buy the car yourself and transfer the title to him sales tax free.

This is definitely the route I'll go if so. Thanks all - will post an update when it's completed.

[dtla1]

Friend of mine has confirmed that sales tax will only be paid once. Brother will stay have to pay registration and license fees apparently.