Traded in my Highlander for an X3 and the BMW dealership did not file the paperwork properly and just got a DMW renewal form for the Highlander, I thought I no longer owned. DMV, told me to always file my own Notice Of Transfer and Release Of Liability form. Could it be, the dealer didn’t want to pay the registration fee? Makes me think the dealer is sloppy at best.
Correct
After you ground a lease in CA you need to complete it, which can be done online. No fee. Any dealer doing it on your behalf is doing you a courtesy, it’s not their obligation.
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You can still file online as @jeisensc said. Put the date you traded it in and DMV will take you off their records 
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Bank sent it to auction and it went out of state.
Why should the dealer fill out a form that you are responsible for?
When I turned in my Audi, the dealer gave me a pre-printed form they’d created reminding me to file the release, and also to update my auto insurance policy.
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At the finance managers office, he handed me the documents that was supposed to do this, it was pre filled out and I signed it. Apparently they left out the selling price and maybe DMV didn’t accept it? IDK.
On the online form it says put 0 for sale price if it’s a lease return.
Forgot to do mine last week so this thread reminded me to do it just now.
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Mine wasn’t a lease return, but noted for future leases.