MBFS: Confusing Lease Buyout Statement

I just requested a payoff statement from Mercedes-Benz FS (trying to sell to GMTV as well), and there’s this text at the bottom of the document:

THE SALE OF DAIMLER TRUST VEHICLES TO ANYONE OTHER THAN THE LESSEE IS PROHIBITED.

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Split this into its own thread (thank you for sharing).

We’ve had reports of adjusted payoffs for MB 3P sales

Sounds like they have stopped all-together?

I just checked mine and I don’t have this text in my personal payoff. Earlier this month I got dealer payoff and mbfs customer service didn’t mention any restriction as well.

can someone please confirm this? i have a benz lease going back tmrw lol. havent seen any issues in the past…

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This is also news to me, but hopefully Volvo and VCFS doesn’t do this as well :laughing:

they did a long time ago

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I thought your original message was sarcastic since this was discussed numerous times, so I added in some thoughts as well…

no, where? i really have an MB lease going back tmrw lol

Nevermind that was lease transfers. Gets very confusing with everybody changing up their policies.

@dennisp63 how recently did you request the payoff for the vehicle?

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I requested the payoff on Wednesday. They emailed it to me today (Friday). Carmax offered more for my car so they are going to reach out to MBFS to verify the payoff on Monday.

I’ll report back here on how it goes.

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So I don’t really understand, can’t we just buy these out ourselves? What’s the difference? Tax?

Ya, tax is the issue

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So basically we have to pay the government twice now (once from us and another from third-party)?

No, just once. You pay taxes when you buy it out vs not having to pay taxes if a 3rd party buys it directly

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I thought in California every car transaction has sales tax?

In most states, when you lease you are only paying taxes on a portion of the car value. When you buy out your lease, you are required to pay the taxes on the remaining value of the vehicle. If you sell to a dealer, generally you can avoid paying that remaining tax value.

Dealers are exempt. If a dealer buys the bank’s car from the bank, you don’t have to pay taxes on it. If you buy the car from the bank, you have to pay taxes. When the dealer buys the car from you, no one pays taxes.

There’s also a 10 day tax exemption period for reselling in CA, but that’s a longer topic.

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Ah, that makes total sense now. I have another BMW and Jaguar, hopefully they’re still allowing it.

Indeed

They are only complicating 3rd party purchases

Chase is most assuredly still Chase

So Chase doesn’t allow it?