Leasing vs. Buying
Moving Out of State
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Glossary |
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Leasing vs. Buying
Moving Out of State |
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Some lease agreements restrict you from relocating the vehicle to another state or country.
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Finance agreements generally do not restrict you from relocating the vehicle out of state.
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| Right to move the vehicle. Some lessors, particularly those operating regionally, prohibit lessees from permanently moving the leased vehicle to another state. Most lessors limit the lessee�s right to take the vehicle out of the country. However, there may be exceptions for vacation use to visit Canada for a maximum period, such as 30 days. | Right to move the vehicle. There are rarely restrictions in finance agreements on permanently moving the vehicle out of state. However, a creditor may include such a condition. Most vehicle finance agreements do not allow the consumer to move the vehicle to another country. However there may be exceptions for vacation use to visit Canada for a maximum period, such as 30 days. |
| Retirees, Canadians, and military personnel. Retirees, others who maintain residences in two different states, Canadians who spend winters in the United States, and members of the military should be especially careful about restrictions on moving that may be in their lease agreements. | Canadians and military personnel. Canadians who spend winters in the United States and members of the military should be especially careful about restrictions on moving that may be in their finance agreements. |
| Notification if you move. In most lease agreements, if you have the right to move out of state, you must notify the lessor that you have moved and be sure that the vehicle is properly titled and registered in the new state. | Notification if you move. In most finance agreements, you must notify the lender that you have moved out of state and be sure that the vehicle is properly titled and registered in the new state. |
| Taxes. You should be aware that if you move, the new state may tax your vehicle in a different manner. Some states collect certain taxes at the beginning of the lease, and other states collect these taxes during the term of the lease. For example, if you move from a state that collects all the sales taxes at the beginning of the lease to a state that collects sales or use taxes during the course of the lease, you must pay additional sales or use taxes on the vehicle in the second state. You will usually not get a credit for paying the taxes in the first state. | Taxes. You should be aware that if you move, the new state may tax your vehicle in a different manner. Some states collect certain taxes, such as sales taxes, at the time of the sale. Other states, in addition to collecting sales taxes on vehicles sold in the state, require payment of a personal property tax (ad valorem tax) on vehicles moved into the state. For example, you may have to pay sales tax on the vehicle when you buy it and a personal property tax on the same vehicle when you move it to a another state. |
Next: Vehicle return
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