Hi folks.
I have a Lexus RX350 that has 12 months left on the lease. The buyout is $38,500.
I’m hoping to trade it in with a Toyota Dealer for our next vehicle (Highlander).
However, Vroom is offering to buy it at $39,800. I’ve never offloaded a car using this kind of service.
Are their any drawbacks here of one versus the other. Dealer is offering a few hundred less (still giving me about $900 equity).
Should I just use a dealer and make my life easier?
Are you trading on a new vehicle at the same dealer? Is there any tax benefit in FL for making such a trade?
If the answer is no to either of these, then take the higher offer. It is an easy process. Search the forum as there are plenty of stories using Broom/Carvana/Carmax.
I would be trading for a new car.
Not sure of the tax consideration with the dealer in FL.
Generally there isn’t a tax benefit for trading in a lease in states that are taxed monthly.
I’d just take the larger pay out. Selling our vehicle to carvana was the easiest transaction ever.
Right, for the portion of the vehicle where taxes have not been paid. In NJ, for example, if I trade before lease end, I would get a pro-rated credit for those up-front taxes. So it just depends.
NJ isn’t a state that’s taxed monthly 
Are you sure that’s right? NJ ain’t giving you back jack lol… trade in or not…
It’s paid upfront on total lease payments
Negotiate the Highlander and have dealer match VROOM price for the Lexus. If the dealer you are working with will not do that, find another one that will.
Exactly. I have no idea how FL works, which is why I put the question on the OP to answer.
NJ isn’t giving BACK anything. It is a tax credit on the new vehicle.
But, yes, you can get a portion of the tax credit based on what you have paid. Depending on when you trade, it isn’t much, keep in mind. I mean, it is complicated, but if residual is $20k and they are giving you $22k, you should be getting $132.50 tax credit.
In Fl you have to be owner to sell vehicle. If u buy it you have to pay salestax on sale. Doesnt work.
Negotiate your best deal without trade in. Then bring up your car. See if theyll match the other offer.
Is this a recent change? There’s been plenty of people on here from Florida that have sold to 3rd party dealers.
Wouldn’t the owner be selling the vehicle in that case? The financial institution is the one selling the car to the third party. I have no clue, just trying to make sense of it.
Correct. The vehicle would typically need to be owned or financed to waive the sales tax.
Can you provide any documentation on this? I’ve only seen sales tax be required in a situation where you must purchase the vehicle from the bank prior to reselling it to a 3rd party. While some banks require this, and you would therefore have to pay sales tax on your purchase, I haven’t seen anything that prevents someone in Florida from selling their lease directly to a 3rd party dealer, assuming than the bank allows it.
You do have the annoyance that in Florida, one must get the buy out amount from a dealer rather than directly from the bank, and go through them should you wish to buy it out yourself, but I’ve never seen any discussion about that being a limiting factor in selling to a third party dealer.
It depends on the bank and Florida. Nissan/Infinity doesn’t let you buy out the car directly from them, you have to have a Nissan dealership coordinate the deal. GM Financial let’s you buy out the car directly from them. Some banks don’t allow 3rd party buy outs at all, or they charge a different amount. Carvana doesn’t buy out Nissan leases at all, yet vroom and Carmax do.
That’s a bank issue, not a florida issue. There are definitely a bunch of banks that won’t allow 3rd party buy outs, but that’s a different conversation.
Florida requires that if you’re buying out the lease, it has to go through a dealer because they’re required to have a dealer’s license. I suppose GM may have a license in Florida to get around that.
It’s the 3rd party buy out without being taxes that’s the question.
I think what you are referring to is to get a tax break on if you trade in the vehicle, yes you would have to actually own the vehicle in that case. To sell a lease, you do not have to have it paid off and titled in your name to sell it. For the most part, any 3rd party can buy out your lease at any time, just depends on the payout, payoff, equity etc.
I was able to buy out my previous Nissan lease in North Carolina, and when I tried to buy this one out in Florida I was told Nissan can’t sell directly to me because of it being in Florida. So I guess it’s both a bank and state issue and the way each operates in different states.
Yes, Florida prevents the bank from selling directly to you. Only a company with a dealer’s license can sell to you.
The question here is about 3rd party dealers buying out the lease without extra taxes being applied.