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Smart Shopper Smart Shopper-Archives Any Questions for a Car Dealer? 
16377 messages, Last post on Feb 11, 2006 at 4:59 AM
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Replying to: steine13 (Jan 21, 2006 3:16 pm) All I'm saying is for a low/no profit deal it just isn't worth the trouble and risks. |
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| I think it depends on the state, I looked into this recently in NJ, and was told by the dealer that I would NOT received a tax credit for my trade in against a lease, only on a urchase. Really not sure of the nuances, but your best bet is to ask the finance manager at the Honda dealer, since they wil know the specific rules in your state. | |
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Replying to: kdhspyder (Jan 21, 2006 9:46 pm) Your answer makes a lot of sense, however, I am confused.  The reason I am confused is because when I leased my wife’s Odyssey, the salesman told me that I have to pay full tax on the original sales price at the origination of the lease, and if I decide to purchase the van at the end of the lease, I will have to pay sales tax again on the residual value. I guess the salesman who sold me the van was “confused”. |
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| With a lease, you pay tax as you go with every lease payment. If you choose to buy it at lease end, you pay tax on the residual. | |
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Replying to: isellhondas (Jan 22, 2006 10:22 am)
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Replying to: volvodan1 (Jan 22, 2006 11:11 am) |
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Replying to: volvodan1 (Jan 22, 2006 11:11 am) And if you live in the City of Chicago, you get to pay both city and county taxes on a new car lease. I don't know what the rates are today but 10yrs ago that meant you paid 13% sales tax on a LEASED vehicle. Oh, and the city charged you a wheel tax of $90/yr (that one has prolly gone up too). Welcome to Illinois!!!!
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Replying to: bretfraz (Jan 22, 2006 11:45 am)  USA Today So if you really pay double on the lease residual that is effectively 18%! |
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This is a nation-wide forum. What is the purpose of these 'tax' discussion? Each state has widely varing applications of taxes on new, used, trade-in, lease, etc etc etc. It's counter-productive to discuss this, especially the ones that state 'No, that's not right, here is how it's done!'. When it only pertains to one state. Now, it would be fine for someone to ask 'How are taxes or fees or licensing applied to a such-and-such transaction in the state of XX'. Then let someone from State XX answer to the best of his knowledge. Otherwise, most of the postings on this subject is just wasted bandwidth.
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Replying to: bolivar (Jan 22, 2006 1:14 pm)
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Smart Shopper Smart Shopper-Archives Any Questions for a Car Dealer?
