DMV paperwork for lease buyout in CA?

[wmz]

So I think I finally finished everything I need to with KMF on my buyout. I sent the check and odometer statement, and I finally got through to them on the phone today. They said my lease is paid off, and I should expect the title to be mailed within 30 business days. What I'm confused about is whether I need to do any other paperwork or pay more fees to the DMV (California) to finalize the transaction. I think these things all vary by state, so I'd really appreciate any help for California.

This DMV page (11.085 Leased Vehicles) says that to change the title, a REG 227 needs to be filled out. This form requries a notarized release-of-ownership statement from the lienholder (KMF). I assume that since I went through KMF for the buyout and already paid all the taxes, they'll take care of this, right? I don't need to fill out the REG 227 or pay any transfer fees, and I should just get the new title under my name in the mail?

What I'm confused about is registration. At the dealership, I paid registration and doc fees, but the car is registered to KMF as the lessor and me as the lessee. I still have 11 months of validity on the registration. Do I have to go to the DMV, fill out more paperwork, and pay the registration fees (~$600) again? It would be pretty ridiculous to have to do all this, especially with DMV capacity being constrained due to COVID. I'm hoping I don't have to do anything and just pay to re-register under my name next year.

 

[General_Vodka]

Ask KMF, they should tell you what they take care of. As for California, it's too much of a headache. Registering my stinger out of state.

 

[wmz]

When I finally got through over the phone, the only advice they could offer was "you have to talk to the DMV, since it depends on your state".

 

[IGotStung]

Hey @wmz, I'm also in the same situation. What did you end up doing ? Did you have to re-register in CA ?

 

[wmz]

Hey @wmz, I'm also in the same situation. What did you end up doing ? Did you have to re-register in CA ?

I had to submit a title transfer request, but at least the registration transfers over so you don't have to pay the fee again. In the mail, KMF will send you the Certificate of Title (it's like a blue-ish piece of paper) that they've signed over to you. They should also send a you Bill of Sale. You can scan and upload both documents and fill out this "Online Title Transfer" form. You have to pay $23 of transfer fees, but I initially got hit with some bullshit extra taxes and late fees that fortunately got removed. At the end of the process, the DMV will ask you to mail your original docs (including your Certificate of Title). I would try bringing them into a branch if you can, since my application has been stuck on "Awaiting Original Docs" since November. See my other post for the headache I went through. Actually, I would say just do it at the dealership, pay the stupid $300 fee, and not have to deal with this headache.

 

[IGotStung]

Thanks for the reply @wmz ! I didn't know that we can go through the dealer to get the buyout done before lease maturity ?! I'll try asking them about it.

I am thinking of just letting my bank send in the check and deal with all this. Only issue is that they told me that I'll have to wait until I get the registration letter from CA DMV before they can fund the loan. Maybe I'll wait for that. It may cause me 1 or 2 payments, but won't have to deal with all this in the worst case.

 

[wmz]

Thanks for the reply @wmz ! I didn't know that we can go through the dealer to get the buyout done before lease maturity ?! I'll try asking them about it.

I am thinking of just letting my bank send in the check and deal with all this. Only issue is that they told me that I'll have to wait until I get the registration letter from CA DMV before they can fund the loan. Maybe I'll wait for that. It may cause me 1 or 2 payments, but won't have to deal with all this in the worst case.

That might take like 6 months, so I'm not sure if waiting on anything from the DMV is a good idea.

 

[IGotStung]

Wow. Didn't think that the DMV is that slow. So it may take me 6 months to get the plates ?

 

[wmz]

Ah you'll get the plates within 3 months. After you mail the check for the buyout, it'll probably take at least 6 months for the transfer of ownership to process.

 

[G-95712]

AAA handles all of this way more easily than anything described here. Make an appointment with them to handle transfer, registration, etc.

 

[IGotStung]

I ended up going through the dealership. They were helpful in doing the buyout and dealing with KMF. But it took me around 6 months to get everything done since all parts are slow (especially KMF and DMV). I had to do only 2 lease payments before the buyout was processed though. Most of the time was to get the title released from KMF.