Tips on Buying Cars: Buying a leased car from a private party, lexus dealer, private party

Question
Hi,
I am planning to buy a car from a private party who is leasing his lexus (We are both in California). We have agreed on the amount but both of us are not clear how we should proceed, since the car is still owned by Lexus financial. I do not think he can pay the full amount and also I read online that if he has to buy it first there will be sales tax involved and I'll have to pay sales tax again when I buy it. I am planning to finance mine through a federal credit union. Please advise.

Thanks


Answer
Prakaash,

Lexus has policies for this.  You will need to contact a local Lexus dealer and they will have to facilitate the paperwork.  First though, the person you are purchasing the vehicle from must call Lexus Customer Service ask them to send him the term paperwork.  Yes, there will be sales tax involved in the purchase of this vehicle.  You will have to pay sales tax when you buy it, but he should not have to pay sales tax when he pays it off.  Your local Lexus dealer should be able to facilitate it all, and handle the financing through your federal credit union as well.

Hope this helps.

Thanks - jb