So you paid the sales tax?
Yes, I did pay Sales Tax and registration fee for transfer in my name.
Did you fill out the form to get the tax back?
Yes, I did.
Can you add to your timeline on how long that took?
July 07, 2021: Sent check to my leasing company to buy the car from them
July 13, 2021: Received Certificate of joint Title from the leasing company
July 13, 2021: Visited DMV to get free and clear title in my name and paid them sales tax, etc.
July 26, 2021: DMV sent me a Certificate of Title in my name via postal service
July 27, 2021: Took certificate to another dealer and sold my car
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Not that part, I mean the fill out the form → got my check from CA dmv.
I am not clear with your question. I can repeat what I wrote in this forum:
I turned in the form (mailed it) on July 28th. I called them on August 30th and left a message. They returned my call on August 31 telling me that your case is under review. They are running slow because of Covid.
They acknowledged by letter on September 28 letting me know that I will get the refund soon. I got the check on October 6.
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So then after this:
July 26, 2021: DMV sent me a Certificate of Title in my name via postal service
July 27, 2021: Took certificate to another dealer and sold my car
July 28, 2021: Filled out Form 399 To get my sales tax back
Sep 28, 2021: Got a message saying it will be processed.
Oct 6, 2021 : Got my check. (3 months total investment)
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Correct. That’s what happened.
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Well for those who care, here was my experience.
11/04 Bought out Infiniti lease at dealer, paid $3k in CA sales tax as part of purchase at dealer
12/03 Received title in mail
12/04 Sold car to Autonation
12/04 Submitted CDTFA 101 request for refund with paperwork
01/23 Got letter saying the dealer is actually the entity that pays the tax, so I cannot request a refund. Letter says I have to get dealer to request a refund AND that a refund would ONLY be paid to them ON THE CONDITION IT BE PAID TO ME. Letter further says basically the tax is overpaid but I cannot claim myself it so I can **** off unless the dealer claims it for me (which is never going to happen).
Absolutely criminal. CA basically admits the tax is overpaid but oh well, guess we will just keep it since the “wrong” person is requesting it, even though they write in the letter that the dealer would HAVE TO PAY IT TO ME as a condition of getting the money. Buuuut since getting the dealer to file for it is more than likely impossible, they figure, guess we will just keep this money. So sorry. Crooks.
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Wow, never heard that one before. SMH
Hope you get paid. At least you didn’t buy from BMW, I heard getting $ of them is like getting blood from a stone.
As a public PSA -
I just did an early trade in on a lease, and at the same time picked up a new lease. In parsing this out, the dealer basically did power of attorney (POA) to buy out the lease with Ally so that it’s still me buying it, but them executing the deal and sending in the payoff. It’s been about 1.5 weeks since I did the paperwork and all is complete.
- The dealer got my old car at my personal buy-out rate from Ally.
- I had to do zero paperwork after signing the POA.
- Title gets mailed to them directly.
- Zero sales tax paid by me.
Not sure if this workaround the different buyout rates will be changed in the future with Lessors, but it’s working right now, that is if your buying dealer has done this.
Southern California FCA dealer for context.
Note that this eliminated some cash back on the new vehicle, but the lack of hassle was worth it.
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Welcome to hotel Taxifornia - your money can check in but it can’t check out …
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I’m doing this now.
Bought out a lease from US Bank. They added tax to the buy out.
They sent me the title.
The irony is, they also included a cashiers check written out to DMV
So technically I guess I am the payor which is good?
Can you elaborate on this more? What and why was this cash back eliminated?
To answer your question, some pieces didn’t work between the switch from Ally to Chrysler Capital. I ate perhaps $1000 of cash back, but got a better rate for the terms I wanted and the math just made sense. I didn’t mean to conflate the lease buy-out with a new lease through a different lessor, but prospective leasees should keep that in mind as you toggle between the lessor companies.
@buybuysellsell - Different banks will do different things. Technically, the onus is not on the bank to pay DMV. You yourself should be paying DMV for tax, if needed. My case was more swift as the dealership also had a bill of sale for me to sign at the same time so all was done in one fell swoop.
Yep you just need to dodge the various curveballs banks throw these days. Third party bs, weird titling procedures, you name it… Lol
Seems like there is no universal/safe way to do this without paying the tax, YMMV?
Mine is with Audi Financial dont envision things being easy with them.