Do you have to pay tax in CA if you are reselling an auto at the end of its lease?
My auto lease is ending. My friend wants to purchase the car as soon as it ends. Do I need to pay taxes to the DMV when I first purchase the car at lease end then to have my friend purchase from me to pay taxes on the car immediately after? I'm located in California. It would be a couple of thousand in taxes i would have to pay. Would rather sell the car for a lower price if I could than including the cost of the taxes.
Thanks in advance.
Yup! Only a licensed dealer (or leasing company that has a dealer's license, which most do) can resell a car without paying the sales and use tax first. Since you are not a dealer you must title the car in your name before you can sell it and at that time the use tax will be due. When you sell it to your friend, he'll have to pay it as well.
See if the lease company will sell it directly to your friend at the price that they are willing to sell it to you for.
