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PurpleTiger
Apr 5th, 2006, 11:58 PM
Just wondering if anyone has any experience or advice to offer on this...

Seller = currently leasing a vehicle from leasing company (private company, affiliated with the dealership, operates in a new car dealership), and is looking to sell the vehicle privately.
Buyer (potentially me) = wants to buy the car.
We agree upon a price.

How does the process work? Does the seller buy out the lease (pays penalties, etc), I pay the seller our agreed upon price, and that's it? Does the seller have to pay the GST to the leasing company (not sure if they're considered dealer, but I assume so)?

The seller has told me that it's all straightforward, and he's done it a couple of times in the past. Basically we both go to the leasing company, I pay the leasing company our agreed upon price, he pays any difference (residual + penalties), and the registration for the vehicle comes into my name.

I just want to make sure i don't have to pay the GST, since it's a private sale between seller and myself...but if the vehicle is never in the seller's name, then I'm buying it from the leasing company. Also, how do I ensure that the lien on the vehicle is removed?

Any advice on how this whole process works?

Dukes
Apr 6th, 2006, 12:25 AM
You'll have to pay PST + GST and a $500 lease exchange transfer adjustment fee to the Gov't.

PurpleTiger
Apr 6th, 2006, 05:54 PM
FYI, I found out from the leasing company that I would have had to pay the GST. So no deal.