Writing a lease? | FerrariChat

Writing a lease?

Discussion in 'General Automotive Discussion' started by hwyengr, Mar 26, 2006.

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  1. hwyengr

    hwyengr Formula Junior

    Apr 9, 2004
    640
    Chicago, IL
    Full Name:
    Jeremy
    I apologize in advance for the length.

    I've gotten myself into a bit of a mess, as most dealings with family members get. I want to lease a car I own to my sister, but only as a method to manage registration and title issues.

    We have a car in the family ('95 T-Bird) that gets passed around from family member to member for various reasons. I'm currently the titled owner, with registration and insurance. My sister's car went kaput, and since I had another car anyway, I let her use the T-Bird.

    I ordered a new MINI about 4 weeks ago, and was told that it would take 8-10 weeks for delivery. When the MINI comes in, I'm going to sell the T-Bird to my sister, and transfer my plates to the MINI (in IL, the plates go with the owner, not the car) I got a call this morning from the dealer, saying my car would be here this week. Which is good that I didn't have to wait another month, but bad because I didn't have the title re-issued when my parents sold me the T-Bird, and I still haven't received the duplicate title from the state.

    I just renewed the old plates last month, so out of principle, I'd rather not pay for a new registration, then transfer the old plates to the new car when the title shows up, and I absolutely can't sell the car without the title. However, the state says I can lease the car to her for a minimum of one year, maintain the title in my name, and she can register in hers. However, the state needs a copy of the lease agreement and paperwork has to be filed with the Department of Revenue.

    Since the car is worthless (about $1,500 on a good day), I'm assuming that there won't be much of a tax burden. But, what kind of lease agreement needs to be drawn up? Can I just have some token payment, like $1/mo? Is the whole thing even possible?
     

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