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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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| 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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| I don't think the discussion is counter-productive and a waste of bandwidth (lying is counter-productive and I don't think anyone is doing that), the information is hard to follow since the context is confusing. What would be more productive is to have a sticky or a thread where people could share what they know about local sales tax laws, then organize it state-by-state so it would be a good resource for members. It could be edited and expanded as more info was available, ala Wikipedia. | |
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On a new car, tax is net of trade. On a used car, tax is calculated excluding any trade (new car dealers have a better lobby group) On leasing a car, all the sales tax is paid up front on the lease, rather than monthly. Ohio is fast becoming a state of old or less educated people, so they have to keep coming up with new ways to generate more tax dollars to keep the inefficient state government lurching along. |
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Replying to: steine13 (Jan 21, 2006 3:16 pm) So what? I understand why some dealers won't do in&outs, it's their choice, but I still don't see the problem. At least in MI, the dealer can tell the buyer to go climb a tree... "AS IS". Yeah, but let's face it, a lot of people have a major blind spot when it comes to "AS IS" or "NO REFUNDS" signs. They believe they are entitled to return anything, anytime and will turn the thing into a holy war if someone tells them they can't. |
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