Can a third party purchase a leased vehicle without payment of sales and use tax twice?
Most motor vehicle lease agreements prohibit the sale of a leased vehicle from the leasing company to anyone other than the lessee or to a motor vehicle dealer during the lease term. The agreements are written this way to protect the lessee, in that the leasing company cannot sell their vehicle to just anyone during the life of the lease. However, there are times when the lessee wants out of the lease and finds someone (third party) who is willing to purchase the vehicle from the leasing company. When the above situation occurs, the lessee and the third party should (highly recommended) enter into a written agreement (before the event occurs) that basically stipulates the following: 1) The lessee has determined the amount required to purchase the leased vehicle from the leasing company; 2) The third party agrees to provide the funds to purchase the vehicle from the leasing company and pay the sales and use taxes that will be due; 3) The lessee and the third party understand that the le
Most motor vehicle lease agreements prohibit the sale of a leased vehicle from the leasing company to anyone other than the lessee or to a motor vehicle dealer during the lease term. The agreements are written this way to protect the lessee, in that the leasing company cannot sell their vehicle to just anyone during the life of the lease. However, there are times when the lessee wants out of the lease and finds someone (third party) who is willing to purchase the vehicle from the leasing company. When the above situation occurs, the lessee and the third party should (highly recommended) enter into a written agreement (before the event occurs) that basically stipulates the following: (1) The lessee has determined the amount required to purchase the leased vehicle from the leasing company; (2) The third party agrees to provide the funds to purchase the vehicle from the leasing company and pay the sales and use taxes that will be due; (3) The lessee and the third party understand that the
