|Sales tax (archive)|
Posted by Steven on September 25, 1998 at 13:01:36:
In Reply to: Big toy's, Big $ posted by Michael C on September 25, 1998 at 11:40:26:
: I was wondering when I bought I paid several thousand in taxes, if you lease do you still pay that kind of sales tax ?
Here's the deal on sales taxes and leases....
Luxury tax (if applicable)is due in full when you pick up the car. Sales tax is based on the monthly payment that is negotiated, then added on to that payment. In effect, you are only paying sales tax on the value of the car during the life of the lease. You are not paying sales tax on the residual value, unless you buy out the car at the end of the lease. Then you'll pay sales tax on the purchase.