Maximize Lease Equity in TX - Advice Needed

If I buyout my Lexus from LFS, then I would need to pay the 6.25% sales tax on that transaction. Not ideal as I want to maximize my return. I would then sell to a private party to capture my equity.

Is it possible to facilitate a sale where I can avoid paying the tax? What would that look like and does anyone have any experience doing this?

Yes, this forum is littered with data points of folks doing exactly that. Take a read through the below threads for starters.

In order to avoid the tax you need to sell directly to a dealer or a Carvana, Vroom, etc.

The process is essentially this: Step 1, verify with Lexus Financial that you can sell to a 3rd party and what the 3rd party payoff is. Step 2, solicit offers from Carvana, Vroom, local dealers, etc. Step 3, pick the best offer and move forward.

Sold One to Carvana

Sold One to Vroom

Ok thanks. I was looking at the private party route since it can command a bit more in the market.

I doubt you will make up the 6.25% selling private plus the headache of tire kickers etc. I would also throw in CarMax and Givemethevin to the list - the latter has a policy of beating CarMax offers or paying you $100 to try to do so. Also ALGo (autolenders go) is good.

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Lexus told me they will charge me sales
Tax even if it’s to vroom or Carvana. Is this incorrect??

That is incorrect. No tax should be charged

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Purchasing dealer pays no sales tax, only sales tax is paid if you buyout and sell again. In a 3rd party buyout no tax is paid.

:chocolate_bar:

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