Sell leased car to CarMax, questions about sales tax

Ask the Hackrs
1

Hello,

I want to get out of my lease after 13 months and I plan to buy the car and sell it.
The leasing company wants $32,431.00 + sales tax (10.5%) which totals in $35,836.25 and CarMax offered me $33,000.00 for the car, they would handle everything. My question is now, would I have to pay the difference from total price or would just pay the purchase price without sales tax?
I’m in Illinois…

Thanks for your help.

2

You don’t need to buy the car from the leasing company before you sell it to carmax. You can sell it to carmax at the buyout price (provided by the leasing company and usually doesn’t include tax, different state may have different rules for sales tax though)

3

CarMax said that they would take care of everything.

This site says if I trade the car in at a dealership I don’t have to worry about taxes
http://www.realcartips.com/leasing/0437-how-to-get-out-of-lease-early.shtml

4

Find out first if your leasing company will even allow you to sell the car to someone other then their dealer.

5

I sold a leased car to car max once in CA and was fairly easy. They will call up the financial company that owns the lease and will get the payoff amount. Carmax will pay up to the price they agreed to buy the car from you. In your case you should get some money from carmax as it looks like they offered more than what your buyout value is. No need to worry about sales tax as carmax has a resellers permit and they do not have to pay sales tax to the government until they sell the car. Carmax should take care of everything for you.

1 Like
6

The key to all sales tax is having a reseller permit.

1 Like
7

Hey bl4d3runn3r,

Would you say carmax was on par with estimates from sites like edmunds or truecar? Or were they way off (better or worse)?

8

So that means I will get $569 back from CarMax if they buy it?

Kelley Blue Book said between 33,000 and 35,000

9

Yes they should give you the difference between the payoff value and what they have offered.

10

Just curious, what kind of car is it and are you under on your miles?

11

I have 6900 miles on it. Its a Dodge Charger.