Yes, you can pay it off on your card but check with your state’s tax law because where I am from (CA), I have to pay 9.5% sales tax on the residual when titling changes from lease to me.
I am in Los Angeles. Will I receive a bill from the state, or how does that work?
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When you go to DMV to re-title in your name, they will collect the sales tax (9.5%) of the residual price.
@NATO said can be done - you have to pay off the car to HFS, then wait for the title. Once you get the title, sell it to Carmax or Vroom or any 3rd party within 10 days to avoid the sales tax.
Got it. I will get a loan from my credit union, buy out the lease and pay the loan back. I was considering putting the car up for sale private party, but if I can’t sell it in a week for more than CarMax’s offer I’ll take it to CarMax. Thanks again for the info!
If your goal is to flip it for the maximum equity possible, don’t buy it (ie pay sales tax). Have the acquiring dealer such as Carmax, Carvana, etc buy it directly from the bank and pay you your equity separately
Is that allowed with a US Bank Toyota lease? If not I think the 10-day tax exempt route is the best way to go since he lives in California. Can still sell it to those third parties anyways.
Edit: oops got OP and the other guy confused. Anyways, there’s that option for Californians.
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