Payoff current lease and sell to Vroom or Carvana

Ask the Hackrs
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Hi Guys, my current Volvo lease will end in 2 months and most of you may know Volvo doesn’t accept third-party payoff any more. I’m thinking buy this car and then sell to Vroom or those online dealer. The quote I just got is around 3k more than my payoff number.
Do you think it’s worth to try? Will I be responsible for any tax? Please share your opinions. Appreciate!!

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There is a way to exempt from tax in Cali. If you search through the forum here, you should be able to find the thread walking through it

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I didn’t use CA Tax exemption but didn’t pay sales tax neither. VW does not charge sales tax at the time of lease buyout in CA so as long as I did not register with CA DMV for a transfer of title, I do not owe any sales tax. Sold the car within 10 days to Vroom.

Check with Volvo to see if the buyout price includes sales tax. Getting your title in your possession takes longer time than you think. Also, some 3rd party will not take your car if the previous lienholder is listed on the title, regardless of it being free of any lien. They will ask you to go to your local DMV to obtain a fresh title without any previous owner names, which at this point, you’ll will have to pay sales tax.

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This is good to know. Thanks for sharing.

  1. So, Vroom had no issue with this type of title? I am hoping Carvana or Shift too are good with this type of title?
  2. Did you file with CDTFA for clearance during or after the sale is done with Vroom?
  3. When you say ‘sold in 10 days to vroom’, what all got completed within 10 days? As in, Vroom has a long process of sending you a Fedex, sending back, arranging pick up etc. Were you able to finish all of these in 10 days?
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  1. Vroom did not, but they use to before, just like Carvana and CarMax. Maybe the market is tight and they are desperate to pull cars in. You can also try one of the OC local 3rd party. Forgot the name but they were mentioned here somewhere.

  2. No tax clearance filed since I did not transfer the car to my name after purchase.

  3. Yes. Within 10 days of getting my title from VW. I had quote already and had everything uploaded except for the title and it’s payoff letter. They did request the payoff letter.

Bottom line is that they have to be willing to take the car without the fresh title, just the original that bank signed off.

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FYI… I just sold my car to Carvana this week. I had 9 mo left on the lease. I didn’t pay it off and ended up getting a nice check from them. I only had 17k on a 36k lease. So Carvana bought the car from the leasing company directly. You might have to check your lease to see who you can transfer to. In my case it was the leasee or dealer, no 3rd party.

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