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Selling Model X within 10 days after lease to avoid sales tax

doctoxics

Member
Mar 26, 2014
526
991
Davis, CA
Has anyone tried to take advantage of the California law that allows no sales tax if you buy Model X at the end of a lease and sell it within 10 days? With FSD, free supercharging and premium connectivity, my Model X may be worth more than the residual. Seems tricky, but might be worth the effort to save thousands in sales taxes.
 

Msd801

Member
May 24, 2020
32
7
Utah
I have no idea but I was under the impression that Free supercharging does not transfer when the vehicle is sold, unless Tesla sells it used.
 

glide

Active Member
Jun 6, 2018
3,660
3,825
USA
I have no idea but I was under the impression that Free supercharging does not transfer when the vehicle is sold, unless Tesla sells it used.
FUSC stays with the vehicle in a private party sale.

If sold back to Tesla they are free to strip it out before selling again.

If Tesla were allowed to remove the feature in a private party sale then that would mean the original owner should be free to port it over to their next vehicle. That’s not how it works.
 

Qbenjamin

Frugal But Classy!
Jan 7, 2017
1,157
703
Bravos
FUSC stays with the vehicle in a private party sale.

If sold back to Tesla they are free to strip it out before selling again.

If Tesla were allowed to remove the feature in a private party sale then that would mean the original owner should be free to port it over to their next vehicle. That’s not how it works.
I'm not so sure about this anymore. There's specific nomenclature in Telsa's listings referring to FUSC not transferring to any subsequent owner(s) after the original. I think that it should follow the VIN, but who knows what they'll do. It should mention this in the owners account.
 

patrick40363

Active Member
Mar 25, 2014
1,173
570
Cali
Has anyone tried to take advantage of the California law that allows no sales tax if you buy Model X at the end of a lease and sell it within 10 days? With FSD, free supercharging and premium connectivity, my Model X may be worth more than the residual. Seems tricky, but might be worth the effort to save thousands in sales taxes.
Where can I saw that law in writing?
 

glide

Active Member
Jun 6, 2018
3,660
3,825
USA
I'm not so sure about this anymore. There's specific nomenclature in Telsa's listings referring to FUSC not transferring to any subsequent owner(s) after the original. I think that it should follow the VIN, but who knows what they'll do. It should mention this in the owners account.
Maybe it depends when you bought the car. Mine is good for the life of the vehicle and will transfer to a new owner via private party sale.

Tesla is notorious for changing their terms and conditions and this sounds like another instance of shady business practices on their part.
 

gavine

Petrol Head turned EV Enthusiast
Apr 1, 2014
2,606
2,137
Philadelphia, PA
A little off-topic, but when we first got a Model S back in 2014, we had a year left on a lease with our other vehicle. We basically stopped driving the other vehicle because Tesla was so much better, therefore, that vehicle had VERY low mileage at end of lease. The car was worth $7K more than the residual so we worked a deal with the dealer to basically, via paperwork, have me buy the vehicle and then sell it to them. I was expecting to pocket the $7K, however, I didn't account for sales tax. I had to pay tax on the purchase of the residual which was around $3K if I remember correctly. So, I ended-up with $4K instead of $7K.
 

MP3Mike

Well-Known Member
Feb 1, 2016
16,185
36,493
Oregon
Maybe it depends when you bought the car. Mine is good for the life of the vehicle and will transfer to a new owner via private party sale.

Yeah, it does depend on when the vehicle was ordered/purchased. If I recall correctly the cut-off date for when transferrable FUSC changed to non-transferrable FUSC was January, 2017.
 

Yinn

Active Member
Nov 15, 2016
2,100
1,892
Behind you
Yeah, it does depend on when the vehicle was ordered/purchased. If I recall correctly the cut-off date for when transferrable FUSC changed to non-transferrable FUSC was January, 2017.

Officially yes. But inventory cars existed that we’re still transferable.

I have no idea but I was under the impression that Free supercharging does not transfer when the vehicle is sold, unless Tesla sells it used.

Tesla bases “ownership” on the Tesla website. If the vehicle transfers from the leasing company to the lease holder, it’ll still be seen as the same owner to Tesla even if the title and registration may have changed hands if the person leasing the vehicle keeps the same profile on the ownership page.
 

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