Leasing a vehicle?

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A big thing with a Lease is you only pay tax on the amount of wear you use. Not upfront on the total value of a new car. If you want to drive a new car and trade it every couple years, then the lease is for you. NOT for me, I have had several leases....AND do not drive very far......
 
Mopar Tim said:
A big thing with a Lease is you only pay tax on the amount of wear you use. Not upfront on the total value of a new car. If you want to drive a new car and trade it every couple years, then the lease is for you. NOT for me, I have had several leases....AND do not drive very far......
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Somebody's paying the taxes. Believe me, that cost is getting transferred to you whether you know it or not.
 
Mopar Tim said:
A big thing with a Lease is you only pay tax on the amount of wear you use. Not upfront on the total value of a new car. If you want to drive a new car and trade it every couple years, then the lease is for you. NOT for me, I have had several leases....AND do not drive very far......
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You bring up a good point .
On a lease you only pay tax on the payment. On a purchase you pay it on the net price after trade. So if you are buying a 50k car and live in a state with 8% tax why would you want to give $4000 to your state to hold when you could be investing it .?

That is also why states like Texas ( iirc) dont allow leases . They want their money now ! You can however do a "smart purchase " which is a lease that is not called a lease but you pay tax upfront.
 
mbaird said:
You bring up a good point .
On a lease you only pay tax on the payment. On a purchase you pay it on the net price after trade. So if you are buying a 50k car and live in a state with 8% tax why would you want to give $4000 to your state to hold when you could be investing it .?

That is also why states like Texas ( iirc) dont allow leases . They want their money now ! You can however do a "smart purchase " which is a lease that is not called a lease but you pay tax upfront.
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Net AFTER trade? In California Tax is due on the total selling price.
 
toolmanmike said:
Leasing a vehicle? I wouldn't.
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