Hey all, I searched for the answer to my question I’m about to ask, but I couldn’t find a clear answer. I recently asked a similar question but didn’t really get an answer there either and today a dealer muddied the waters by saying my payoff does NOT include sales tax, when US Bank says it does. According to US Bank my payoff as of today is $22,686.07 and includes tax. Talking with the agent he stated that they either wire the sales tax check (state dependent), or send it out to me to present at the DMV when I register and title. I had imagined this would be the scenario, but the dealer kind of knocked me off my horse with that comment.
It appears my best option (both the easiest and more importantly fastest, as my wife isn’t keen on me taking practically $23k out of our account) is to buy it and then sell it to a dealer for $25,500 (I have had three ford dealers and two Toyota all come in at either $25k or $25.5k). I realize that I am paying the sales tax on it only to turn around and sell it to a dealer but in my mind I am still coming out way ahead then if I just turned it into US Bank as the dealer payoff is almost $26k!
I know most advice would be to sell it privately, but again, I’m taking the path of least resistance here even if it costs me some bennies on the trade. Essentially this boils down to turning the car in and losing any equity that may be there, or buying it myself and paying the sales tax.
Thoughts? Sorry for the mostly repeated question… been through 3 leases before this one, never with US Bank and trade ins were always easy. Thanks all.
Fair points for sure. It’s a process either way but as I look at it, I have the potential buyers lined up. It’s possible to get more privately, but that may be a longer process. Either way, this particular situation is a first for me.
I got out of my US Bank lease about 6 months ago so I know what they’re talking about.
When you call US Bank they will give you a payoff which is the number they gave you. Included in that is sales tax as you’re buying the vehicle and you have to pay sales tax on it.
When the dealer calls in and gets a dealer payoff their number will be lower and won’t include sales tax because they’re a dealership.
US Bank will actually NOT give you a dealer payoff but when you call and get your payoff tell them to give you a breakdown of the $22,686. US Bank leases usually have an early termination fee as well which should be included in that number.
