Does 10 day window start after getting the title(which took 40 days) ? In that case, once I get the title, can I sell it to vroom or carma?
I’m trying to help a friend with their Mercedes, which no longer allows a third party buyout of the lease. Has anyone done this with a car that doesn’t allow third party buyout? Companies like Shift say they can work with that, but then when I go to do the estimate, it says they can’t. I know about the 10 day sales tax timeframe in CA, but I’m confused if there’s an easier way around the issue than buying out the car and rushing like all hell to get the title over to a buyer.
Currently I am in the limbo mentioned above and wanting to avoid getting taxed twice. With VW Credit being named on the title, but signed over to me, do other known options exist besides a Private Party or CarStub?
Mycarauction, they’ll take it
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My experience from companies that accept leaser titles in Southern California:
- Mycarauction - $26,000 initial offer - didn’t proceed
- Carstub - $27,300 initial offer - Their staff was nice and they came out to my house quickly. Once here I got complimented for the condition of my car and then they proceeded to offer me $26,000 in person, didn’t proceed
- Shift - $27,000 initial offer ($26,800 + $200 bonus credit) - Made an appointment and received a call to make sure I came prepared. No tricks got played and I got the initial offer.
When scrambling for ways to get the higher quote from Auto Nation I realized I could get the title in my name faster through AAA. Due to being out of town next week for work travel, it wasn’t worth risking the tax hit.
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Can you place an ad before paying off the lease? To have a buyer lined up when signed title arrives from bank. Or will CDTFA deny tax exemption if ad is placed before signed title is in hand?
What exactly happened on day 9? Did you go the DMV on day 9?
They said they handed a Lessor Released title to the New Buyer and both signed at the DMV.
Since it is Lessor Released, no tax was paid previously, it was paid at the DMV
The 10 day rule doesn’t really apply here because the title was Lessor Released. The 10 day rule starts with the New Title in the buyers name appears.
So the guy who bought it would now have 10 days, the original poster didn’t really invoke the 10 day rule.
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So after paying off the car, some banks send Lessor Released title and some banks send a title in the new owners name?
This only works in CA btw, I am not aware of any dealer located out of CA who accept lessor released title.
All banks can send lessor released titles, CA has a special tax rule that you can exploit the LR title and not pay tax. So in other states the LR title must go to the DMV and cant be sold to someone else before hand.
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So reading through here and wanting to check my comprehension.
GMF lease ended, initiated loan to purchase through CU. I can list for sale, apply for CDTFA-111, sell to private party within 10 days of receipt of title, and pay no tax no anything correct?
Roughly
Purchase - Pay Tax - Get Title - (10 Day Rule Starts) - Sell Car - Apply CDTFA-111 - Get Refund of Tax
Only Applies in 1 State, California
Ah so we do pay tax up front. Does it further complicate things if we bundle tax with car loan?
Not really, just remember to pay back your loan in full.
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Cool thanks super helpful!
Sorry one more question - is tax refund issued back to original payment method or via check?
usually a check to you. However, there is some issue if a Dealer Pays for it (You use a dealer to process the loan) as the check to DMV came from the Dealer
Oh yea totally. Anticipating this I originated loan from CU with no taxes and will pay myself. Thank you for the info!
This guide is super helpful - thank you! I’m about to try this out in CA, buying out my BMW lease and selling to CarMax. Has anyone successfully made that happen between these two vendors?