Do I pay taxes?

I have an Alfa Romero with 3 more lease payments. Local dealer ship is buying my car for $1000 and another dealership, 2 hours away is buying for $3000 more. The local dealership said I have to pay taxes on the difference. Is that true?

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You don’t pay taxes when selling a car. Who is the lease through?

ally financial

Good luck selling an Ally lease.

why do you say that?

Ally jacks up the price when it hears a dealer is doing the buyout

Not if dealer has a relationship. I think most is 1000 fee. Best check to confirm

You definitely don’t pay taxes if the dealer is actually buying out your car. Make sure the dealership understands you are selling them your car, not asking for a dealer assisted buyout. Or they are trying to hide a dealer fee in there as “tax”.
Also-as this is an Ally lease, make sure the dealer is either Ally certified or be prepared for a buyout wayyyyy different than your personal buyout (possible thousands of dollars more).

Thanks for the info.