Keep in mind that this is a lease, so you will need to register the vehicle in your name when the title arrives including paying tax (if not collected from GM) and then transfer the new title when you get it and try to recover your tax paid under the ca tax exemption.
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Thanks for the great advice everyone, so appreciated. Yeah, I’m going to give a dealer one more shot (with the private offer in hand to use as leverage) and if that doesn’t work, I will insist on getting the full price up front from the private buyer. If the deal falls through, it falls through. Again, thanks!
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A quick question about this, from my research the buyer pays the tax when they register, if the title is transferred within 10 days, as a seller I pay no tax in this scenario. Am I wrong about that?
fixed that for you.
There’s a form you fill out. And this assumes the buyer registers it in CA.
Ah. Thanks!
You are the buyer and need to register it in order to get a title with your name on it, before re-selling it.
I just chatted with the DMV and they said this about this scenario:
Agent: At the end of the lease agreement, use tax is due on the balance owed.
If the lessee sells it to a third party within 10 days from the date the lessee acquired title
from the lessor, use tax is due only from the third party.
Me: Ok, so once I sign the title over within ten days, is that the end of it? Or do they have to register the car in California within a certain amount of time for my tax obligation as the seller to remain nil?
Agent:They need to transfer into their name and pay the sales tax with in that 10 days
So I’m on the hook if they don’t register within ten days, but it seems as if I don’t have to pay the tax upfront. I know that doesn’t jibe with what you said, forbs, so what do you think? Are you positive about your thoughts on this? I want to be sure.
This only applies if you sell it to a Dealer.
Since you are private partying a LEASE, you need to turn the Title from the Bank to your name before you can transfer it.
When you get the original title, it’s released to you, and not to the third party, hence you need to get your name on it to sell and pay tax.
The Lease part is important.
Edit : Theoretically, the DMV person can do a big double transaction at once, but what happens when you both get there, wait in line, and they say ‘no!’
Usually you don’t have a choice in the matter since the lessor will generally collect sales tax on the buyout
GM Financial is not asking for any tax, they’re asking for the buyout amount to be sent to them. Unless they can follow up with a later charge, it seems to not be an initial thing they do.
Super confusing to me why the DMV person wouldn’t make this distinction. You seem like you know your stuff so it’s worrying, I just can’t find the whole “you pay it then you get it back” anywhere in any of the DMV info, just that you don’t have to pay it if you turn around and sell it within ten days.
You know DMV people don’t care? lol
It’s here at the bottom
And it ‘says’ you could avoid taxing, but that hasn’t been the case here except once…So if you succeed, please post here your expirence.
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Are you sure the buyout value they’re quoting doesn’t already include tax?
This is the thread you want to pay attention to in detail:
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You will pay the sales tax to the DMV when you go to title it in your name. In CA, the captive bank does not need to collect sales tax, but the DMV damn sure will. Plan on needing to file to request a refund of it. And if the buyer waits too long to register you may be shit out of luck.
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Cause the whole system is designed for retailers with afterthought workarounds for situations like yours that weren’t super common pre pandemic inventory shortage.
‘You don’t have to pay it’ and ‘you don’t ultimately owe it’ are two very different things. They say the latter they don’t really at all say the former even if it sounds like that’s what they’re saying.
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The whole thing was so bizarre. I actually talked to someone on the phone from the CA Tax department who specializes in this area and he unequivocally said I would not have to pay the use tax upfront if I sold the car within ten days of receiving the title. Who knows what would have happened when I actually went in to the DMV to do that. It’s all moot because I heeded the wise advice from this board and just sold it to the dealer, who came a decent amount up since the last time I tried. Lost some money, but I avoided the hassle and didn’t have to pay the disposition. Thanks everyone for your help!!!
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I know it after the fact, but what you were planning to do in your OP, I could see 9/10 issues and only 1 where you end up with your money. So be happy you got it all done with a minimal of your investment of time.
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I think you are a great example of one who actually listens to the provided advice here. Twice.
Appreciate the kind words, thanks. Incorporating the thoughts of people in the know should be an easy thing to do, right? 
Should be 
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