I have looked thoroughly here and this topic has not been discussed.
In CA, you are allowed to payoff your leased car in order to resell it without paying taxes on the payoff IF you can sell it back and to a third party which would need to register the car within ten days of the original leasee recieving the title form the lessor company. BUT YOU HAVE TO MAKE SURE THE CAR IS TRANSFERED TO THE NEW ONWER WITHIN 10 days.
Now is the tricky part.
What if I payoff the car and sell it to s dealer? The new dealer would not register the car and I believe the car will remain under my name until they find a buyer for it. I believe they will hold on to the title that is under my name until the car is sold again. So I’m this case? Is the bill of sale enough for DMV for tax exemption? Because the car will clearly not be registered to a new owner.
If anyone here has payed off a leased car and sold to a dealer please share your experience