MBFS: Confusing Lease Buyout Statement

Ask the Hackrs
5

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

6

they did a long time ago

1 Like
7

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

8

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

9

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?

1 Like
10

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.

1 Like
11

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

12

Ya, tax is the issue

1 Like
13

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

14

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

1 Like
15

I thought in California every car transaction has sales tax?

16

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.

17

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.

1 Like
18

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

19

Indeed

They are only complicating 3rd party purchases

Chase is most assuredly still Chase

20

So Chase doesn’t allow it?

21

Reporting back my experience:

CarMax was able to get a payoff quote from MBFS and I sold my car to them on the spot (06/28). I will keep an eye on the account to make sure it is paid off and closed.

3 Likes
22

This is inline with my discussion with MBFS. You should update the title accordingly.

23

agree - my non benz dealer bought out a benz lease return today.

1 Like
24

This topic was automatically closed 60 days after the last reply. New replies are no longer allowed.