Paid of car and title question

[phuzaxeman]

I leased my 2018 3.6r and paid of the balance to own the car.

 

When I got my title from the bank, the title was still in subaru chase name and they sent me an application to transfer along with the title.

 

I live in Texas and paid for the title transfer plus had to pay over 1k in sales tax for purchasing the lease.

 

When I paid off my 11 WRX several years ago, subaru sent me the title with my name. I don't remember having to transfer the title at the dmv.

 

Is there something different I did wrong? Thanks.

[ammcinnis]

Under most leases, the leasing company is owner of the car. Technically, you exercised an option to buy a used car (your leased Legacy) from the leasing company at a pre-negotiated price. In most states I would expect sales tax and a title transfer to be involved.

 

On the other hand ... If, rather than leasing, you had purchased the car and financed it, the original title would have been in your name as owner, with a lien against it in favor of the lender. You would have paid sales tax and registration fees at the time of purchase or shortly thereafter. When the car is fully paid off, the lender files a satisfaction of lien and a new (clean) title is issued to you.

 

(N.B. I am not an attorney, and the comments above are not legal advice.)

Edited November 20, 2021 by ammcinnis

[MoleMan]

I think you did it right.

 

If the car is financed most likely the case of your WRX all you do is exactly what you did. Bring the title to the DMV so a reissue of the title can be made so no leans are in the DMV system.

 

In this case you did everything right as the car as ammcinnis has said it’s looked at like a used car purchase since you are buying the vehicle from an entity. When it’s financed you have already did that step that’s the difference.