Lease buyout and sell process questions

oxygen300oxygen300 Member Posts: 2
edited July 2020 in Dodge
Hi everyone,
First of all, sorry if it’s too long, I tried best to summarize what I’ve researched so far before asking naïve questions.

I have a 2017 Dodge Challenger SXT Plus with 20k miles on it. Car is in excellent condition except the tires need to replaced. My lease payoff is 18.5k and the dealer is offering 23k. My research shows I can get around 24k with private party but then it depends on finding a buyer and hoping everything goes through smoothly.

The problem now is, Chrysler didn’t allow the dealer payout option and asked me to buy first and then do what I want. In this case, I’ve to pay off the lease, get the title and go to DMV to change the title to my name. This process can take anywhere between 15 to 60 days plus I have to pay the sales tax at DMV.
I have read the 10 day rule to avoid duplicate taxes as per http://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC&sectionNum=6277.&article=1.&highlight=true&keyword=resale+vehicle and https://www.cdtfa.ca.gov/formspubs/pub34.pdf

My questions are
1. Has anyone tried this? How was your experience?
2. Has anyone paid the taxes first and tried to claim the refund?
3. I couldn’t figure out if the 10-day rule applies when selling to the dealer or not. Any ideas on that.
4. Anything else that I missed in my thought process?

Note: The car is good, I like it. I’m just trying to cash out my equity and use it towards 2020 GT model.

Thanks in advance!

Comments

  • kyfdxkyfdx Moderator Posts: 212,132
    oxygen300 said:

    Hi everyone,
    First of all, sorry if it’s too long, I tried best to summarize what I’ve researched so far before asking naïve questions.

    I have a 2017 Dodge Challenger SXT Plus with 20k miles on it. Car is in excellent condition except the tires need to replaced. My lease payoff is 18.5k and the dealer is offering 23k. My research shows I can get around 24k with private party but then it depends on finding a buyer and hoping everything goes through smoothly.

    The problem now is, Chrysler didn’t allow the dealer payout option and asked me to buy first and then do what I want. In this case, I’ve to pay off the lease, get the title and go to DMV to change the title to my name. This process can take anywhere between 15 to 60 days plus I have to pay the sales tax at DMV.
    I have read the 10 day rule to avoid duplicate taxes as per http://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC&sectionNum=6277.&article=1.&highlight=true&keyword=resale+vehicle and https://www.cdtfa.ca.gov/formspubs/pub34.pdf

    My questions are
    1. Has anyone tried this? How was your experience?
    2. Has anyone paid the taxes first and tried to claim the refund?
    3. I couldn’t figure out if the 10-day rule applies when selling to the dealer or not. Any ideas on that.
    4. Anything else that I missed in my thought process?

    Note: The car is good, I like it. I’m just trying to cash out my equity and use it towards 2020 GT model.

    Thanks in advance!

    Make sure of your actual lease payoff. Having positive equity of $4500 doesn't happen very often.

    You won't get out of paying the sales tax, if you buyout the lease, then re-sell. Forget about this option.

    If a dealer buys the vehicle, they purchase it direct from the leasing bank. You won't be involved in sales taxes.

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