I went to my local dealer the other day to see what they’d pay out for my 2019 Alfa Romeo Giulia Ti Sport.
Carvana/Vroom et. all are around $32-$33k (3rd party buyout not allowed but just wanted to see numbers). my buyout from Ally is around $25-$26k. The dealer told me that I would need to purchase the vehicle and then do a transfer to the dealer. Is this because of Ally’s rules? I know they don’t do 3rd party buyout but it’s literally the dealer. I would consider going with them if they made it simpler. The numbers the dealer gave me also had me paying sales tax on the buyout amount.
Any help here would be greatly appreciated! thanks all.
Well if that is truly the case with this particular stealer I would buy it, pay any sales tax and sell it to vroom or caravan for the 33k. You would still be way ahead, just waiting on the title is the problem, maybe or maybe not.
so theoretically if i purchase vehicle outright, get title quickly, and sell to carvana within the 7-day tax period, i should be able to qualify for the tax back, correct?
Absolutely will not happen. Carvana requires the title in your name and DMV takes 3-4 weeks to turn that around. Plus the time to get the title from the bank in the first place.
You’re better off just assuming you will have to eat the tax and just decide if if stills makes sense for you or not.
The 10 day period seems to start once the title arrives. There have been plenty of posts here outlining the refund process for tax that have been successful.
The transfer date showing on my title is roughy around when I received it from the captive (perhaps that’s the title arrives date referred to above?), and the issue date is the date I went to DMV, either way I didn’t receive the title in my name until nearly 4 weeks later.
I was speaking specifically to Carvana in CA, since they don’t accept title in lienholders name. There’s other smaller 3rd parties that do, but the offer may not be as competitive. For Carvana in CA, there just isn’t a way to get it done in a way that exempts you from sales tax. Maybe they used to accept title in lienholders name, but as of November, my experience was that they wouldn’t.
The refund from dmv regarding taxes paid comes after that.
I agree carvana won’t take a lessor released title. After transferring it into your name, there’s a process for requesting a refund that seems to offer some leniency to the 10 day period because they know they too long.
I hope you’re right, but even on the title it states an issue date that reflects the start of the 3-4 week period. If they don’t go by that date and instead give you a several week buffer, that’s far more generous than I’ve ever seen from DMV or CA FTB, haha.
I am getting questions from many people about refund. Here is once again a complete process:
To sell your car to any dealership like CarMax, Carvana etc. or any auto dealership, I had to buy the car from the leasing company to get the title from them. I then had to go to DMV and pay sales tax to get clear title in my name. It took a while to get title in my hand. I then was able to sell my car.
As soon as I sold my car I applied for sales tax refund. I filed form: CDTFA-101-DMV (S1F) REV. 3 (12-20). The form can be obtained on line. I sent the required documents and gave them dates of each action. It proved that delay was not on my part. Following is the timeline:
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
July 28, 2021: Filled out Form and mailed it to get my sales tax back
August 30, 2021: I called them and left them a message to see where my case was
August 31, 2021: They returned my call telling me that your case is under review. They are running slow because of Covid.
Sep 28, 2021: Got a letter saying that refund will be processed soon.
Oct 6, 2021: Got my check
