Trading in a leased car

Has anyone traded in a leased car? My dealer is offering 47K for my leased Lexus which has 45K payoff. Curious how sales tax is handled. Hope I won’t have to pay sales tax on the payoff amount. Also, curious if the 2K difference will come later from Lexus or if I can apply it directly towards my new lease? How about the MSDs? Assuming I will get my MSDs from Lexus after the deal is complete.

Have you compared purchase quotes from carvana, shift, and vroom?

You don’t need to pay taxes on the payoff if a dealer buys it. If you get money back later or applied to the lease depends entirely on what you tell the dealer you want to do. They can apply it or they can cut you a check. Money comes from the dealer, not Lexus.

MSDs should come in a check from Lexus a few weeks after the deal is done.

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make sure your MSDs aren’t being included in your payoff quote. I recall one bank including them in a net payoff, as in residual Minus your MSDs. so it is possible this is a losing deal. Make sure you clarify before agreeing. And do check vroom and carvana

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Great point. I remember reading a thread about that here on LH, but don’t remember which manufacturer.

For the benefit of the forum I confirmed with Lexus that they don’t net the MSDs with the payoff. MSDs should come back to me about 30-40 days after the sale.

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