What forms do I need to buy out my leased car? | Ask the DMV
Q: I’m planning to buy out my leased car soon. Do I need to reregister the car or transfer the registration? How do I go about it, and what do I need?
— Mary N.
A: The DMV’s website (www.dmv.ri.gov) has a section on leased cars: New Registration, Out of State Transfer, and Lease Buyout. This information can be found in the “Registration, Plates & Titles” tab, “Registrations,” and then the “Leased Vehicles” section. Here’s the information you need in order to complete a lease buyout:
• Application for Registration TR-1 (If you print this out from our website, a checklist will print out giving you this same information.)
• Original Lease agreement
• Bill of Sale from Leasing Company (should include buyer(s) name)
• Valid RI insurance information
• Seller and buyer must sign the back of the title (if model year of vehicle is 2001 or newer).
• VIN Check: Vehicles 2001 or newer, if the title is from another state or if the vehicle was registered in another state, a Vehicle Identification Number (VIN) check is required before you register the car. A list of VIN stations and their hours can be found on our website.
• Gross Vehicle Weight (GVWR found on VIN plate on driver's-side door)
• RI license or identification card. If a valid out-of-state license is presented, proof of residency is required.
• If two owners are listed on the title, both parties must be present during registration, if not, signature of the absent party must be notarized on Application for Registration TR-1.
• If the plate was registered to you prior to leasing the vehicle, we can transfer the plate with no documents required. If plate was acquired during your lease, a Plate Release letter will be needed from the leasing company giving you the plate.
This transaction can be done in person with a reservation (instructions on how to make a reservation are found on the front page of the DMV’s website), it can be done through the mail (600 New London Ave., Cranston, RI 02920), or it can be done by using one of the DMV Drop Boxes located in the lobby of all the DMV branches (Cranston, Woonsocket, Middletown, Wakefield, and Westerly).
The DMV’s website contains all the information and forms needed to complete all DMV transactions.
Q: I recently returned from active duty in Europe with the U.S. Army. While there, I bought a new car in January 2021. It is in the process of being shipped home. When I register it in Rhode Island, what can I expect in terms of taxes and fees? Will I have to pay sales tax? If so, is the tax on the depreciated value of the car?
— Christian M.
A: As far as sales tax is concerned, you will pay sales tax based on the price you paid for the vehicle. The tax due will be 7% of the sale price. As long as you pay the sales tax before the 20th of the month following the vehicle’s entry into Rhode Island, there will be no additional penalty and interest assessed.
As far as documents required to register this, we need an original bill of sale from when you first purchased the vehicle abroad, the proper entry forms from Customs (a 7501 form or military HS form 7), the foreign registration, if available the original Certificate of Origin, and a VIN inspection from a local police department. Once here at the Cranston DMV, the Enforcement office will also have to run a NICB check on the vehicle as well.
Once you have all of that, you complete a TR-1 application, and a sales tax form, and your transaction will be completed.
All forms, branch locations and hours, and reservation instructions can be found on our website: www.dmv.ri.gov.
Chuck Hollis is assistant administrator of the Rhode Island Division of Motor Vehicles. Please email your questions to cars@providencejournal.com with “Ask the DMV” in the subject field.
This article originally appeared on The Providence Journal: What forms do I need to buyout my leased car? | Ask the RI DMV
