Lease buyout at the dealer?

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Hi All,
This is my first time doing a lease buyout and I have couple questions.

  1. Does the VCFS payoff amount include sales tax?
  2. My Volvo dealer is trying to make me come in to process the payoff at their dealership.
    I believe the payoff amount would not change, but should I be worried for any dealer service fees?
    Or should I just send a check to VCFS myself? What’s your preferred way?

Thanks in advance!

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Your payoff most likely includes tax but I would just call VCFS to confirm.

And with the exception of Florida you should not have to involve the dealer at all to buy out your lease. You can send the $$ directly to VCFS, they mail you the title. You can confirm this as well when you’re on the phone with VCFS.

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The dealer just wants you there so he can try to convince you he needs to cpo it or something like that and make sure he gets a chunk of your money as well.

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Thank you for your reply!

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I knew it. I’ll try to do it myself then. Thanks!

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So I have already made the last payment of my XC90, but Carvana is showing at least $5k in equity and I want to get some of that…
I spoke with VCFS they say that theres like $1900 in sales tax to be added to the payoff…
I am in Miami Florida and my question is should i buy the car and then sell it to Carvana for example?

I dont understand why the payoff must involve car dealer in florida??

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Florida law requires the bank to have a physical location in the state and a dealer license to sell out the lease. Most banks don’t satisfy that requirement, so it has to go through the dealer.

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I guess the first step is to get your exact payoff from VCFS including tax, and compare that to updated offers from Carvana, Vroom, etc. Then contact a dealer and ask about the buyout process including any fees they might charge.

While you’re on the phone with the dealer, ask if they would be willing to match/beat the highest offer you have.

Once you’ve done the math then it will be much easier to answer your question. If you stand to recoup $2-3k in equity once all is said and done then it’s probably worth it, but for $400 maybe not so much.

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Plus at least $1,000 in various dealer fees.

What’s the wait time to get a title in your name from the state of Florida?

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Thanks… So yes I will making those phone calls right away see if it’s worth it…
I was about to ask about times receiving the title lol…

Thanks again!

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so already made those phone calls, even spoke with VCFS several times just to confirm:

So the sales tax is included in the payoff amount that I got from my VCFS online account.
Just mail the check to them and they will sendd the title in 14 business days ( 7 if cashier check).

But when I spoke with the dealer they insist that they are the ones who needs to do the whole process and charge for tax and dealers fees…

Like I said, I just want to send the check to VCFS and thats it right? or does the car is still entitled to the dealer in someway?

You can see in the payoff form attached that theres is an $500 fee for florida residents included in that amount, so I think that will covers those dealer fees/

Anyway, with that amount im like $4k + equity so is a no brainer or I am missing something?
do I have to pay taxes again once I sold to Carvana Carmax etc…

Thanks again!

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If VCFS provided you with payoff instructions for purchasing the lease, it sounds like you have a path forward. The lease is between you and VCFS, not you and the dealer.

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exactly ! well I think im going for it … will update when done…

thanks again!

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Hi ashevtotal

I just did the same thing and sent off a check for a lease payoff on an XC40 for exactly the same reason. I have about 5K in equity with Carvana if I buy it and sell it (ours is way under the mileage allotment too).

Sounds like the dealer is just trying to get you into the store and then they’ll probably do the old Switcheroo - “Look, it doesn’t make sense to buy it. We could get you into a 2021 Volvo today” or “We’ve heard a lot of bad stories with Carvana. We can buy it back off you for the residual and get you a great deal on a new Xc90 today”.

I just contacted VCFS and got the payoff quote, mileage declaration form and the signature/title address page.

I’m in the CT so it included Sales Tax and also property tax I believe. Make sure you call or secure-message them and get them to send the lease payoff package (not just the one you can print on their site) because that contains the mileage declaration form too.

Hope that helps - I’m still waiting on confirmation that they’ve received my details.

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Oh great did they sent you that package via email?
Its weird they didn’t mention it in our phone calls…

Very helpful let us know how it went!

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They also include $350 purchase fee in the payoff amount.

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In my case in CA, tax isn’t included in the payoff amount.
Once paid off, VCFS will send you the title, you take that to the DMV to remove VCFS and that’s when you pay the sales tax. I guess you pay to the DMV? That’s what VCFS rep told me.

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So I have a Volvo and in south Florida as well. I was considering selling my car to carvana or carmax. My question is why wouldn’t you just go to carvana and provide them the payoff to vcfs and have them pay vcfs directly and cut you the difference? sold my Subaru about 3 months ago and carmax paid Subaru financial directly and cut me a check for the difference.

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VCFS doesn’t allow selling it to 3rd party dealers. Only authorized volvo dealers can buy it.

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