Do not do that unless there is a large gap of days between when you receive the title and when mycarauction writes you the check. If you transfer the title dmv will want sales tax.
And to clarify, the title the lease company sends you is the pink slip that shows you own the car, the lease company and you own it, but they have signed it, look at 1a, you have to sign 1b.
What is confusing is vroom, carmax, etc is telling everyone that they won’t accept the title because the lease company’s name is on it, which makes no sense. When the lease company signs 1a, and the odometer section and 2, you own the car.
Big misconception. A Lease means you RENT the car. That’s why it’s confusing, you are making an assumption of ownership. Look at your lease contract , notice a line called RENT CHARGE?
Edit : Until you go to the DMV to fix the title, you don’t own the car, you are in uncontested possession (Lawyers speak up on the term?) of the car, but you don’t own it…yet.
Perhaps these companies got burned once or twice for an unknown reason or a lessor / captive changed their mind after a transaction occurred which then caused Vroom / Carvana to lose money.
Point being, it only takes one or two times till they change the reality and it’s their company, their rules.
Well TECHNICALLY according the DMV, you don’t. Taking a released title to the Dealer could possibly avoid paying taxes and that’s one of those things that States frown upon.
Until the title is in your name, it’s still their car, even if released.
I posted some data a few weeks ago about a pathway to claim tax back but have yet to start the process (work got in the way lol). Many banks are requesting tax payment up front so if your bank isn’t, you dont need to worry, just buy the title from them and then resell it as soon as it comes in the mail.
No. Legally, you own the car the moment they cash your check. This is basic contract law. The offer is made the day you request the pay-off quote, the acceptance is when you send in your signed forms and a check for that quote amount without any counter-offer conditions, and the consideration is when they cash the check you sent them. Normally, they’d also need to give you possession of the car, but that’s already been done. That action (cashing the check) satisfies the consideration component of the contract and completes the transaction. For cars which aren’t road legal, titles aren’t even required - lots of old race cars trade hands on bill of sale alone.
If DMV actually functioned like you think they do, they would have never created REG-262, which allows for multiple transfers of the same vehicle without re-titling in each owner’s name. This form is specifically used to sell cars which have been lien released or purchased from a lessor without needing to make a trip to the DMV.
The reason that large corporations won’t accept the released title is liability, not legality. They don’t want to take the risk of buying a car from someone with a forged payoff letter and an erroneously mailed title, because in CA, they’re stuck with the bill if the lessee comes after the car in a case like that. Smaller outfits are more willing to determine case-by-case whether they’re comfortable with that liability, and so they accept released titles with a payoff letter and REG-262 instead.
Hit the same situation and have no idea who to ask. The timeline of the buy and sell:
9/22 pay off from honda leasing company
9/27 honda leasing company send the title release and other confirmation paperwork
10/2 paperwork received
10/2 go to CarMax for an attempt to sell but was told the title is not under my name and have to go to DMV for the new title
10/4 go to DMV but have to pay the sales tax before I can transfer the title under my name. The title transfer will take 2 to 4 weeks according to DMV staff.
So the question:
which day is the start day of the 10-day policy?
is there any approach that I can get rid of the title transfer for selling the car? Is there any dealer that will acknowledge the title release in CA?
But the used car company won’t buy the car if the title is not under the leasee’s name. It will take few weeks for title transfer. If the 10-day start from the day that leasee received title release, then it’s impossible to sell the car within 10 days since the title transfer has to take more than that.
which company did you sell to? They did not ask any title thing? I am trying to sell to CarMax and shift. But both request me to have the title under my name before they can buy from me. While it will take DMV two weeks at least to process the title transfer.
If I want to purchase my car at lease-end in California, sell it to Carmax and not have the dealer charge sales tax, I need to provide a Reseller Permit with a California Seller’s permit number to the dealer. And the dealer decides, in good faith if they will accept it. I also need to be engaged in the business of selling tangible personal property. . This is from CA Regulation 1668. Sales For Resale. See Sec1:1 CDTFA Motor Vehicles Dealer.
None of that applies to me. And I don’t see anyway around that.
