Purchasing a Leased Vehicle from the Lessor

[Carrie080]

My question involves vehicle registration or title in the state of: Colorado

We bought a car that was leased. We have the bill of sale, title and the car. When we went to the DMV to title it we found out that you aren't supposed to buy a leased car through the lease holder because they have to pay taxes. The lady we bought the car from moved to a different state and we have contacted her to correct this issue. To sum it up she's no help. We need to title and place tags on the car but the DMV hasn't been much help. We have tried to complete everything they tell us to but when we return there is a different person with different instructions.

[Disagreeable]

You are giving conflicting information. You say you bought the car from the leaseholder. The leaseholder does not own the vehicle. They have contractual use of the vehicle. The leasing company owns it.

[Mr. Knowitall]

They appear to be stating that they purchased a car from the lessor at the end of the lease term, with the lessor paying the 'end of lease' purchase price to the lessee. Apparently the car being leased in a state that only charges sales tax on the cost of the lease as opposed to the full purchase price - meaning that the lessor was supposed to pay sales tax on the buyout amount. Apparently the lessor did not pay the sales tax, leaving the OP owning sales tax on the purchase from the lessor and also unable to register the car without paying the sales tax that the lessor failed to pay when buying the car from the lessee - effectively having to pay double tax to register the car.

[jk]

If it as mr k suggests, it would probably be the simplest for the op to pay the taxes and consider suing the seller. Depending on where the seller is located and how much money is involved, it may be the most prudent action to just writing this off as a lesson learned.

[Disagreeable]

That was what I inferred also Mr K. I was trying to figure out how the title was legally conveyed from Lessor to Lessee without tax being paid. It seems a bit of title kiting was taking place and OP has been called to pay for it being permitted willingly.