there are no taxes when a dealer does a buyout
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If you leased the car you are paying taxes on a monthly payment and that means that Carvana will pay dealer payoff that does not include taxes.
So Carvana is paying the dealer payoff - I will have to pay taxes or there just are no taxes in general? Thanks
Also Carvana a payoff is different that yours. Your payoff includes taxes. Carvana’s payoff does not. Don’t worry you don’t have to pay the taxes on the contrary if the payoff you are seen is yours then you might actually get a little bit more money as you are expecting.
Example:
My Mazda payoff is 26,000 and carvanas offer is 26500. I’m expecting 500 in equity after payoff is done right? Well no because that payoff includes my taxes and carvanas payoff was different when I called Mazda. Carvanas payoff was around 25,000 so that means I will be getting 1500 in equity just because Carvana does not pay taxes on the car.
There are no taxes in general when a licensed dealer acquires a car.
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Carvana just picked up my 2018 Elantra SEL. 7k miles.
I leased this vehicle in January of 2019.
- MSRP: $20,045
- Purchase Price: $18,966
- Monthly Payment (including dealer fees, tax, etc. $0 drive off: $220.77
I did trade in a 99 Civic for $500 toward this, now that I think of it. Otherwise, $0 out of pocket
Fast forward to three weeks ago. I see this thread, and it gets me thinking 
So…I run a payoff on the car. It was under $12k. I run the car through Carvana-- they offer over $14k.
Not too shabby. They just picked the car up the other day. Money for the equity is in my account. Now the wait for the lease payoff 
This option paved the way for me to nab my first EV (Hyundai Ioniq). Doubt history will repeat itself with this car–especially since NJ wants me to hold it for at least two years if I get the rebate.
As an aside: Vroom offered me $12k. Then they upped it (unprompted) by $700. Dealership offered me $12,500 as a trade in.
Hi Everyone,
Just thought I’d share my Vroom and Carvana experience. I didn’t end up selling the vehicle to either of them but I still thought the process and the way things played out was kind of interesting (at least to me lol)
I had wanted to lease a larger SUV than my 2018 BMW X1 (the X3 in particular), but had ten months left on my lease so wasn’t optimistic that things could work out this early. The few times along the way that I had researched values for the X1 they were not encouraging. The payoff was around $28,300.00, and even though the X1 had extremely low miles most of the KBB type sites showed values in the very low twenties at best. For info sake they now show mid $20’s since the used car market has improved. I will say up front I did NOT want to deal with selling it myself or do a lease transfer.
Around the end of June I figured I’d check Vroom. They came in at $24700.00. So too low to help but still higher than I expected. Then a week later they came back (on their own) with an offer of $25200.00. Still not enough. The BMW dealer played with the figures (trade value vs payoff vs rolling in the remaining payments etc) and the best they could do was about $27K even. I was surprised they got anywhere near the payoff but the deal still didn’t work out, mainly because of my credit and BMW Financial wanting to cap the payment.
At the end of July I figured I’d make one more attempt at putting a deal together, since I still thought the negative equity might be hurting things more than my credit…or at least making an already challenging situation worse. The Mercedes dealer I was now working with (on a GLC) was able to get a lease approved without restrictions more readily than BMW, but unfortunately they were coming in a few thousand less on the trade payoff. So this time I tried Carvana instead of Vroom to see what kind of figure they would offer, and they came in at $27860.00. So roughly $400 less than the payoff, which I thought was pretty unbelievable. I was fully prepared to sell the X1 to Carvana at that point, but when I told the Mercedes dealer about Carvana’s offer they decided to match the Carvana figure…which helped everything else work out on the GLC lease and made the whole transaction a lot more convenient. I haven’t seen too many other Carvana and Vroom-related posts (or really any) mention the dealer matching their numbers so I wanted to share that part, since I think sometimes people just figure the dealer won’t even bother trying to get close to what Carvana and Vroom can do.
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I’m trying to sell our BMW to carvana, but they don’t call lender for dealer payoff. BMW won’t release dealer payoff to us, only a dealer. Spoke to a supervisor and got nowhere. Carvana says they need per diem, but BMW says that doesn’t exist on a lease payoff. How can I satisfy carvanas requirement when lender won’t send to me?
Just to follow up here - I contacted Chrysler Capital and they said that the dealers do in fact pay the $350 Purchase option fee, which essentially comes out of my positive equity. If anyone has a diff experience, please chime in.
That’s the number to text? 88132? I chose the text me option online but been an hour, waiting for a text. Been 2+ hours waiting for a call back lol
Like @max_g said above, if you’re selling to a licensed dealer, there will be no taxes. They have a tax exempt certificate.
If you sell private party, taxes would be required for the buyer.
If you buy it in expectation of selling it later, you would pay taxes.
Just sold our 2017 Mazda CX-5 GT to Carvana and made a bit over $4200
Pretty happy with this as it was a deal I negotiated pre-LH days for $300/mo + tax 900 DAS and we avoided last month’s payment + dispo fee
Once we got carvana to call chase for dealer payoff the pickup was done within 48hrs to check in hand.
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Did you already have the deal worked out before you introduced the trade? They probably just gave you less of a discount on your lease.
The longest I waited is like 20 minutes for a text reply, they must be really busy!
Hey what happens if I accept the offer by uploading all of my documentation, but by they time they verify/get back to me, the offer expires? Like my offer expires tonight, but I just submitted all the proof of ownership.
If you’re in the middle of their process I doubt they are going to arbitrarily stop it.
Took me about 2 1/2 hours for a reply to the text option. Chat option said 5 minutes to talk to someone, but after 3 hours didn’t get anyone.
Wow, I just called them too, says 8 min wait lol. You’re saying it’s 3 hours?
I called at 8:30 and left a callback, still nothing. Went to chat and tried that, didn’t get a response till 11.
Well they just told me that if by the time they review my stuff the offer expires, theyll need to re-appraise. So that sucks