I just finished this insane CA lease buyout sale process for my 2020 Volvo XC90, and because this forum has been so helpful to me in navigating it, I also thought I would share a timeline.
tl;dr - Vroom overpromised multiple times they could do this transaction, and they ultimately could not; CDTFA gave me a run around for weeks and ultimately denied my tax clearance application because of the 10 day rule; I ended up selling to My Car Auction which offered a decent price and could accept the lessor released title. My takeaway: find a dealer (online or in person) who can do the lease buyout directly or accept a lessor released title, otherwise you’re likely in for weeks of stress. This process has been awful, and I don’t wish it on my worst enemy.
5/23 Sun - Received an offer of $49,176 from Vroom for my Volvo; agent confirmed they could do a Volvo lease buyout (Carvana said they cannot work with Volvo and offered less anyway)
6/1 Tues - Called Vroom to check on buyout status; agent indicated their acquisitions team could not facilitate the lease buyout with Volvo and closed the account; agent indicated they would be able to purchase at the original offer price if I bought out the lease myself
6/1 Tues - Obtained a cashier’s check and overnighted to Volvo for lease buyout
6/4 Fri - Volvo online account showed status as paid; Volvo recorded 6/4 as “date of purchase”
6/11 Fri - Received an “odometer disclosure statement” in the mail from Volvo requiring me to sign and fax back to Volvo (wow, a week delay and we’re using fax for this??)
6/11 Fri - Faxed odometer disclosure statement to Volvo
6/18 Fri - Volvo signed the title releasing their interest in the vehicle and processed the title for mailing
6/25 Fri - Received the lessor released title (dated 6/18) and bill of sale (dated 6/4) in the mail from Volvo; lessor released title names “VCFS Auto Leasing Co” as well as myself and my wife; VCFS has signed away their interest in the vehicle on the title
6/25 Fri - Uploaded lessor released title to Vroom; called Vroom buying agent who confirmed receipt of title and said contracting should be in touch
6/28 Mon - No word from Vroom on the 10th day since title received - feeling nervous about the 10 day rule; applied online for a use tax clearance certificate (CDTFA-111), submitted supporting documents (scanned copies of lessor released title, Volvo buyout offer, cashier’s check, proof of intent to sell vehicle through advertisements and Vroom correspondence) and received a CDTFA confirmation number
7/2 Fri - Called the Oakland CDTFA office to check on clearance certificate status; receptionist provided the number to an agent; called the agent three times with no pickup; left agent a message on 4th try (no call back)
7/2 Fri - Called Vroom to check on contract status; agent indicated contracting team closed the account without any notation; agent was confused and reopened the account and resubmitted documents, indicating contracting should be in touch within 2-3 business days
7/4 Sun - An online CDTFA agent emailed about the tax clearance certificates and indicated “I am not understanding your request” and instructed me to read “Pub 52 which I have disclosed the link below and if you still feel that you qualify for a clearance please send in the appropriate documents.”
7/5 Mon - Emailed CDTFA agent pointing to relevant CDTFA website indicating tax clearance eligibility for “Transfer of a Vehicle to Lessee by Lessor for Purposes of Resale” and pointed out that all documents have been submitted online
7/8 Thur - CDTFA agent requested bill of sale from Volvo; replied to email indicating I was travelling but would send over the weekend
7/9 Fri - Called Vroom to check on contract status; agent said account was closed again by contracting, transferred me to contracting agent; contracting agent indicated that Vroom cannot acquire the vehicle without a fresh title with only my name and that the title must be held in my name for a minimum of 14 days before they can issue the contract; contracting agent did not know why acquisitions team has this policy and cannot accept the lessor released title
7/11 Sun - Emailed CDTFA agent with Volvo bill of sale
7/15 Thur - CDTFA agent said they need the bill of sale from my contract with a buyer; I indicated that in order for me to sell to a private buyer, I needed the tax clearance certificate first to get a fresh title and not pay sales tax, after which I will contract with a buyer
7/16 Fri - CDTFA denied my tax clearance request indicating: “2. Seller purchased leased vehicle, 2020 Volvo XC90, on 06/04/2021. 3. See attachment, received email from Seller dated 07/15/2021 stating he has not resold the vehicle and current location of the vehicle is his home address. 4. Test period expires on 06/14/2021 due to the applicable regulation. 5. Request for a tax clearance denied. Seller is still in procession of the 2020 Volvo XC90 41 days after buying out the lease and have not resold the vehicle within the 10 day test period.”
7/16 Fri - I relisted the Volvo on Craigslist for $48,500; received a call from www.mycarauction.com who said they can purchase the car with the lessor released title for $47,000
7/17 Sat - My Car Auction buying agent came to my house, inspected the car, cut me a company check for $47,000 and scheduled a vehicle pickup; my wife and I signed a title transfer form and I signed the lessor released title releasing our interest in the vehicle