Payoff current lease and sell to Vroom or Carvana

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!!

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?