Hyundai Third Party Lease Buyout / Transfer - Double Sales Tax in NY?

Hey Folks,

I need to get out of a 2018 Sonata Limited lease (I’m moving overseas shortly, so no option to ride it out).

My current buyout price, without sales tax, is something like 18.3k. I have a private party who wants to buy it at that price, but it seems that if I buy the lease and sell it to the party, we BOTH end up paying sales tax.

Hyundai finance said that a dealer should be able to do the transaction for me and avoid sales tax, but every Hyundai dealer seems unwilling to do that - they want to buy it from me at wholesale, and then sell at retail (obviously).

Question: Is there any way to do this without paying sales tax twice or some other way to minimize losses? Is there some way to get Hyundai finance to give the title directly to the buyer? Should I just sell it to Vroom to avoid the headache?

Any suggestions highly appreciated. Thanks!

What is Vroom/Carmax/Carvana offering? If it is getting you at or close to buyout, it will be easier to do it that route.

I put in a quote request with Vroom yesterday, so I should hear back from them later today. Carvana offered me 16.6 a month ago, so that’s not great, but Vroom seems to usually be better.

What did you end up doing? I am trying to get out of mine as well.

I did a third-party lease buyout and was able to avoid use tax. I am in California and it involved a number of steps. I did a quick write up to explain:

The summary is that in CA, you can exempt yourself from use tax if it’s a lease buyout for resale. The key is that it needs sold to be within 10 days of “acquiring the title” from the lessor (CDTFA Section 6277).

If that is done you can use a CDTFA-106 form (or do it online) to apply for a CDTFA-111 form which exempts you from use tax. You’ll receive a physical form that you would pickup from your local CDTFA office. Take that form and the title you want to transfer to the DMV and they will void taxes.

There’s some more trickyness to this around timing (essentially, you need someone to buy your car without the title being in your name yet). I added more detail in the doc.

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I have similar situation. I’m in my second month of 3 month extension. Seems Carvana and vroom are not doing lease buy outs anymore. And ally financial doesnt allow third party anyway.

  1. Does this mean my only option is to to buy my car and then sell to vroom?
  2. I’m in NY. How long would it take to get my title?
  3. Also the buyout includes taxes. Is there a way around that since I’m selling right back to Vroom?
  4. Once ally gets my check what’s the process then?
    Thanks

Yup. If you buy it out, you’re paying taxes, unless you’re in California.

There’s a thread dedicated to Ally which would be worth checking.

Great. I’ll check it out. Thanks