Third Party Lease Buyout

Very cool. When you received the title, (i) was it in your name already or (ii) in VW’s name and signed to you on the back or (iii) in VW’s name and not signed to anyone?

Just curious how how the title was signed off. I talked to someone who said you can use another space on the back of the title if there are multiple transfers.

I believe it was (iii) I remember it still had VW on the title, but when Carstub showed up, he pointed to where I had to sign and the deal was done.

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I’m very glad I found this thread. I bought out my wife’s GTI as we had a lot of equity in it and only afterwards did I find out that Vroom, Shift and Carvana all wanted the title to be in my wifes name which would mean cutting a big check to the state of CA for the pleasure of just passing it on to a 3rd party seller. I also tried Carmax to no avail. Once I found this thread I contacted CarStub and they offered me $500 less than Carmax, BUT, they would take the title as is which meant no waits and no paying taxes to CA. The appraiser came out within an hour from me calling them and after reviewing the car cut me checks for the total amount.

Also just to clarify, VW name was still on the title but it was of course signed so we could transfer it directly to CarStub.

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Sorry to bump an old thread. But since I’m also in the middle of a lease buyout resale with an eGolf in California, I figured I’d ask my question here

I started this process earlier this month with a very cooperative private party buyer for my egolf. The positive equity is about $3000

I received title from VW credit on 3/22, however they date on the title says 3/18.
My buyer is picking up the car tomorrow 3/30) so i hope the 10 day grace period starts from when I received title on 3/22

The challenge I have is i just now notices that the title from VW credit lists my purchase price. My buyer will obviously see this when I hand over title to them. I hope it doesn’t cause the sale to fall through. Can I scratch out the dollar amount on the title? I’m not sure that will help as it will look like I am trying to hide something.
I’m somewhat in a panic because I want the sale to go through, and I don’t want to pay the use tax. Any pointers on how I move forward?

Just say that was your payoff, but you paid quite a bit down to get it there. Like if you did a one-pay and the payoff is just the residual, etc. or if you financed it and didn’t have many payments left.

This is indeed a very informative topic.

There may be a leeway based on what few other people documented here: California sales tax on lease end buyout - be educated! | Inside EVS Forum

GHTech is correct about minimal driving of the vehicle once you have the title in your possession. If you can’t sell the vehicle within 10 days, you will need to record any miles required to sell the vehicle (e.g. prospective buyer test drives), and then complete a form from the California tax authorities.

I’m in the process right now with my ID4. The issue I’m having is how to effect the lease buyout without paying the use tax they’ve baked into my payoff quote. Are you all referring to the use tax on the residual and just paid the payoff use tax? Were you able to successfully get VW to remove the taxes they were including in the lease payoff? Or is there a process to get those use taxes refunded?

Basically, I’m one month into my lease and my payoff is $39,8xx.xx. Vroom is offering me $39K. My payoff is including $1600 in taxes on the $18K of payments I won’t be making but isn’t including any taxes on the $22K residual. Unless I’m reading this wrong it seems like I’d still owe DMV taxes on the residual if I was to keep/title the vehicle.

What state are you in?

Sorry, I’m in CA. I thought this discussion was specific to CA so I didn’t specify :slight_smile:

Does anyone know what kind of title VW will send me if I pay it off? Is it just their title released to me or is it a title in my name that I can sign to someone else?

So if I’m reading this correctly - I can’t use CarMax for this as I’d have to drive it there which is considered personal use?

You should be fine. Apparently the CDTFA is OK with some miles as long as you document that they’re being added to support the sale of the car (test drives, etc). Even by the most conservative standard, driving the car from your house directly to CarMax to deliver the vehicle would be considered a trip in support of the eventual sale. I wouldn’t worry about this at all.


I just received the title (CA) from VW Leasing and they signed line 1a, line 2, and filled out the odometer reading and signed as seller. They also put my name on the back as the new owner/buyer with the sales price. How do I sign it over to a new buyer or can I just provide the title without signing it and a REG-262? I only have a few more days to sell it before the 10 day period is over. Also, my buyer is from out of state.

Hello. Can you update what happened with your sale? How did you transfer to the other buyer?

How long did it take to receive the title after mailing them a check?

In the buyer’s state, they just needed a power of attorney. So nothing on the title needed to be updated/signed. I just went to a notary to get a Power of Attorney form provided by their state’s DMV and they took that to their DMV to register it. In CA, just filled out the Notice of Transfer and Release of Liability. Also filled out a REG-262 also to document the sale, odometer, etc.

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I overnighted the payment and also paid for it to be overnighted back. It took 17 days once they received the payment. It arrived 3 days after they had signed the title leaving 7 more days to sell the car within the 10 day period.

Thanks a lot for the details. Did you also apply for CDTFA-111 approval as per the original post in this thread?

Thanks! On the phone VW credit said it takes about 4-6 weeks. I’m getting rid of a Tiguan with around 5k in equity if I pay it off. But if sold directly to a dealer I’m 2k in negative equity. 7k swing in price.

I did not. I called the DMV and they said I don’t need to because use tax is only due when the vehicle is registered. Since it wasn’t going to be registered in CA, it wasn’t necessary in my case.

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