Selling your lease when you can't sell to 3rd party

Ask the Hackrs
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Thanks for the insight @nextlevelautobrokers :+1:

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You don’t pay sales tax when a 3rd party buys from you, nor does any 3rd party dealer.

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Wait, so Carmax (or whomever) does not pay sales tax AT ALL in a private party sale???

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Carmax isn’t a private party sale.

They pay no tax when they buy it from you. As a dealer buying it for resale, they’re tax exempt.

The person who buys it from carmax pays sales tax, just like if they bought it anywhere else.

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Definitely did not know that! Thanks…

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The lease on my Volvo XC 60 is going to end in a couple of months and my residual balance is below the resale value that was offer by Carvana. However VCFS will not let third party seller to buy it out.

What are my options here to make most out of this situation? I am located in FL.
I am also looking for a replacement SUV that I would like to lease or buy based on the pricing.

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You can buy out your lease yourself and then sell it to whomever you want or you can trade it in, at a Volvo dealer, for a new Volvo. How much equity are we talking?

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we are talking about $5000

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The sales tax you have to pay when buying it out to resell will eat up some of that, but definitely not all

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I did account for the sales tax, if not we are talking
about $8000

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Hi, where can I find that laws in CA? I’m worrying Honda giving me lower offer and I have to pay it off to sell it to third party. But I cannot find the buy and sell policy for sales tax. And I dont know where to ask. DMV? If I need to sell it to Carmax, I have to put my name on the title which will definitely require the sales tax. So how does that work?

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Thank you so much for all the works! That explained a lot. In my case, I was planning to sell my leased car to companies like Carmax but they told me they cannot but cars leased from Honda any more and Honda even wont give them a quote of paying off.
I heard about the sales/use tax policy in CA but wasn’t able to find it. And I emailed CDFTA today to ask but no answer yet. Then I saw your posts.
After checking your research, I found it would probably be very hard to me because I asked HFS and they said it would take 5-7 days to mail me the original title and I’ll need to go to DMV for a title with my own name, by when I should be asked to pay for the sales tax. And without a title with my own name, companies like Carmax wont buy it. So the chicken & egg problem is a hard “no” in this case. So unless I can go through the tax refund retroactively you mentioned, I probably need to find a personal buyer. I’ll probably keep asking CDFTA about this because buying from lessor and selling a car to Carmax is definitely “a sale for resale”.
Thank you so much and could you please share me the email thread with CDFTA please. I left my email in the doc.

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