Volvo XC40 - continue to lease or sell

I’m currently leasing 2019 Volvo XC40. Lease is not good. The payoff amount at present is $30,036. Monthly payment is $607. Carvana, Vroom, and KBB instant purchase offers range from 35,500 to 36,200. Should I pursue these offers and get out of the lease? I’m interested in purchasing Tesla Model Y.

You should plan on buying the Volvo out yourself, either paying tax or risking the CA 10 day process to avoid tax, and hope that your buy out options don’t go down by the time you get the title in your name.


Did you mean: I end the lease by buying from Volvo at the current buyout price. Then, sell it to whomsoever pays the most. You’re suggesting this approach to avoid paying CA taxes. $30,036 payoff does not include sales tax. How is sales tax avoided in this approach?

California has a process for reselling within 10 days of purchasing and being tax exempt, but it isn’t an easy process.


I found a thread where it is discussed in details Third Party Lease Buyout. I’ll go over it.

I’m wondering what if Volvo lease force me to pay sales tax? I can call them tomorrow to confirm but wondering if anyone knows.

In CA, tax is paid to the dmv when you do the title transfer, not to the lessor when you buy it out.


CarMax is offering $38,200. Someone in this post Carvana and Vroom won't purchase lease directly from Volvo Car Financial Services (VCFS) - CT - #4 by cpq indicated CarMax is more willing to work with Volvo on customer payoff quote. I think $8.1k equity seems pretty good and would cover to some extent for the bad deal I have on this lease.

I lot of people sold for a lot less equity

Hurry up and take the offer.

You’ll never know when a bubble pops until it’s too late.


I thought Volvo does not allow 3rd party buyouts ?

I confirmed with Volvo. They don’t do 3rd party buyouts. I don’t know how the poster in the other thread made it work with CarMax.

Yea no brainer… even if you must buy out yourself and you can’t meet the 10 days requirement to avoid tax (~$3k) you will still have $5k equity. So worst case still seems pretty good.


I’d need to purchase myself and have title in hand. Risk is, as @mllcb42 said earlier, CarMax’s offer might be gone by the time I have the title.

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I agree @itsrishi but, hopefully, equity does not disappear overnight :slight_smile:

That depends on the captive. My payoff for Hyundai in CA included tax. I paid no tax at DMV (AAA) when I turned in the title received from Hyundai.

If this is the case, good luck trying to get tax refunded from CA.

OP: If Volvo payout does not include tax, lock in a quote from Carvana (longest I received was a month). That should be plenty of time to receive title and get the ball rolling.

I confirmed with Volvo. Taxes are not included in the payoff amount. CarMax offer is good for 7 days only. I did an appraisal via Edmunds which also goes to CarMax. Estimate went up to $39,200.

The online estimate is good for 7 days and the clock resets when you go in for appraisal. Go in with the online quote on the 7th day to stretch it an extra week. Probably not long enough but at least gives you a chance.

If the XC40 is your only vehicle, be prepared to go carless for a few months, because you won’t get a Model Y until Q4 2021 if ordered today.

I do have another vehicle. Long range is showing Estimated Delivery: 4-8 weeks. So, yes, Q4 likely.

2+ months is on average folks are reporting.

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