I don’t recall them being that close. There were some 2 or 3 year olds on the lots that got in the high 50s but anything abled to be leased was in the 60s.
The base challenger was 58k at one point with cloth seats and halogen headlights.
very true. I had to pay off my Tundra and sell it. It took a little over a month and US Bank’s customer service sucks…but they know what you are doing which probably adds to it. ended up walking away with 7k though so tying up 43k for 30 days wasnt too bad. Dealer i sold it to took the vehicle to lock the deal and I got the check when i signed over the title.
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Huh, do you handle sales tax? Usually purchase for purposes of resale (and without) usage is exempt by many states.
The tricky part is that reselling a car might require a dealership license in certain states (for differing costs and requirements) and they may require that to get the waiver; but conceptually the sales tax system is not designed to charge the reseller and only the end user.
If this was a widget, it’d be really easy to get a sales tax certificate. For cars, it varies state by state on how difficult it is to exempt yourself (ranging from finding a buyer that will take the lease company title directly to…)
Generally I don’t. Sales tax is usually dealt with by not assessing it if you are trading in a car.
So another U.S bank buyout success.
2019 Jeep Wrangler Rubicon lease. 24m into 42m lease. buyout with all tax and fee was 42826. Sold to carshop.com for 53,500 today, org msrp was 54010 and purchase price was 47529 back in July 2019. 183 for title registration. For a 10,491 recoup of lease payments.
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INCREDIBLE!! Nicely done!
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How long did it take for you to receive the title?
About 3 weeks
Has anyone done a third party us bank buyout in CA? I realize the buy out letters show sales tax but california waives sales tax (10 day rule)
I bought out my Wrangler US Bank Lease for $29k and sold it to driveway.com for $37.3k. US Bank made me pay the sales tax but Driveway was able to title the car using the “dealer reassignment form” on the back of the title, so I never had to register the car in my name. Since I didn’t have to register it, I didn’t have to pay the sales tax. Originally, they had made me pay $32k and gave me a check payable to the DMV for the ~$2500 in sales tax. The DMV said I don’t have to pay it since it wasn’t registered in my state, and US Bank told me to send it back and they will send me a new cashier’s check payable to myself in the same amount.
I originally paid $34k for that Wrangler brand new. What a market.
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There is no sales tax due when a 3rd party dealer buys out the lease. Has nothing to do with the CA 10 day rule.
My understanding based on the above replies is that US Bank collects sales tax on top of the buyout amount if a consumer were to buy out the lease. Third party isn’t subject to tax but US bank also marks up the price of the vehicle so I want to see about buying it out myself (then giving the vehicle straight to the dealer)
In that case, you’re not talking about a 3rd party buy out anymore.
OP, I dont know what state you are in but in CA theres a 10-day rule to which the buyer doesn’t need to pay sales tax if the title is transferred within that time. So US bank is collecting sales tax on a transaction that isn’t legally required (assuming CA). Since you “resold” the vehicle right away did you still have to pay that ~$2k worth of sales tax or was it possibly refunded to you?
Yeah, its not defined as “third party” since they mark it up. So i’m trying to find a pathway to buy out the lease then immediately resell to a dealer… I’ve got a lease I picked up in Nov with a $44k cap cost so the tax is a $4k chunk of change, but same destination at the end of the day.
It’s not that. It’s not third party because you’re talking about buying it yourself rather than a third party buying it. Makes it a first party buy out.
Correct, in my case it is a “first party” buyout that I’m trying not to pay sales tax on, since I plan on selling/trading the vehicle in within the 10 days limit. I’ve had leases with other banks where they did not collect the sales tax so was pretty surprised with USB