It’s the same as a private party deal, yes. The leasing company sends you the original title and you take it to DMV and pay the sales tax there.
The other way to take advantage is to lease again through US Bank. The dealer will get the lower payoff amount and then you can roll the equity into the new lease or cash it out. The downside is you are pushing the inevitable pain of returning a lease with US Bank down the road, but the good news is you will get the equity.
I cannot understand people complaining about a windfall in the form of an option that’s in the money.
Count your lucky stars your lease came with a free option (one that didn’t require any extra payment) granting you and only you the option to buy this vehicle for well below its current market value.
Go look at any other asset class like stocks and see if anyone will give you options for free. And they end up expiring worthless half the time.
1 Like
Been dealing with Vroom and trying to sell my 2018 VW Tiguan. They quoted me an offer of about $5k more than my payoff amount and it was also more than Shift, Carmax and Carvana. Started the process almost 2 weeks ago and finally got an answer back last Friday. Vroom is a hot mess, but that will be another thread. Anyway, I knew that the 3rd party buyout amounts were going to be different than what my personal buyout would be. What I didn’t expect was that it was going to be $5500 more! What TF Volkswagen Credit?! Basically Vroom wants me to pay them $500 to buy my car. I cancelled this deal immediately. Just doesn’t make sense. Anyone else experience a crazy delta between personal leasee payoff amount versus 3rd party?
Unfortunately, this is expected from VW. Various folks in this forum have reported the same exp. You might still come out with positive net after purchasing the car and selling it directly to carvana etc. GL!
and
Ugh, thanks!
Thank you!
The option is not free. There’s lease acquisition and disposition fees, and oftentimes the lease MF is higher than purchase financing.
1 Like
Often times it isn’t too
My Tiguan is a year old and my lease buy out quote stands at 21k. I tried to use this to cash in with carvana as they are offering me 27k!
However when carvana received their figure from vw it showed 28k hence putting me back in the red. Caravans say this is vw levying extra charges. Any idea?
Discussed previously if you search
2 Likes
In another thread, a car buyer said VW / Audi was off the table. So you might out of luck doing a direct sell.
Any advice on how to do the direct sell to carvana? I know you have limited time before sales tax is incurred. Presume I’d need to
Pay vw
Register with dmv
Wait for pink slip
Sell to carvana
?
Try and sell to a VW or Audi dealer. They get preferred pricing (same as owner). Also, private party pricing is different than dealer.
But they’re unlikely to come anywhere near a Carvana offer.
1 Like
You can’t direct sale unless you want to be subject to VWC’s market price for a dealer to buy it out.
You can try to payoff VWC, then see if you can sell it directly to Carvana without putting it in your name. You may still owe the sales tax on the RV however.
Sales tax would be due on the pay off amount, not RV, in most states.
Depends on which state. California is 10 days, and in most other states it’s due on registration.
To be a bit pedantic, in CA it’s due when you transfer the title into your name, but if you sell within 10 days and file the appropriate paperwork, you can get exempt.
Don’t want anyone to misunderstand and think that just because they sell within 10 days they’re good to go.
1 Like