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?
Probably better off and less headaches just shopping the sale to a dealer who can buy directly from BMW (any BMW dealer or Autonation dealer or any dealership with BMW under their umbrella can do this)
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