Automotive

Buy back lease in Corporation name (instead of personal)

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  • Jun 4th, 2020 7:36 am
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May 27th, 2020 4:03 pm
Tush171717 [OP]
Newbie
Jun 1, 2019
18 posts
11 upvotes

May 27th, 2020 4:03 pm

Buy back lease in Corporation name (instead of personal)

I have a lease that is ending next month with Mercedes. I'd like to buy it back in my family business' instead of personal. Mercedes has told me they can't do that and I will have to buy it back personally (since my name is on the lease) then transfer ownership to the corporation.

I would be responsible for paying HST at point of sale with Mercedes. Then once I transfer ownership to the corporation I would be paying HST again on FMV at Service Ontario. Is there any way around this? I am hoping not to pay HST twice. Note I'm not a shareholder with the company.
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May 27th, 2020 4:22 pm
Xtrema
Deal Fanatic
Sep 1, 2004
5380 posts
4050 upvotes

May 27th, 2020 4:22 pm

Yeah, A Delorean :D

Should have lease under you corporation in the 1st place.
Jun 3rd, 2020 11:18 pm
Tush171717 [OP]
Newbie
Jun 1, 2019
18 posts
11 upvotes

Jun 3rd, 2020 11:18 pm

FYI for anyone in the same boat as me, I called around multiple dealerships and found one that was willing to do the transfer.
+2
Jun 4th, 2020 7:36 am
afretes
Deal Addict
User avatar
May 22, 2009
4583 posts
751 upvotes
Caledon

Jun 4th, 2020 7:36 am

Tush171717 wrote: ↑ I have a lease that is ending next month with Mercedes. I'd like to buy it back in my family business' instead of personal. Mercedes has told me they can't do that and I will have to buy it back personally (since my name is on the lease) then transfer ownership to the corporation.

I would be responsible for paying HST at point of sale with Mercedes. Then once I transfer ownership to the corporation I would be paying HST again on FMV at Service Ontario. Is there any way around this? I am hoping not to pay HST twice. Note I'm not a shareholder with the company.
They most likely want to keep the car, making hard for you to buy it. Contact MB directly, skip that dealer or go to another dealer.

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