Because that’s the law in New York. You can ask the for an additional loan from the leasing company (if they allow it) to loan you additional money to pay the taxes that are due up front and then pay them back over the lease but then you’re paying interest on your taxes. New York state must be paid in full for taxes on the entirety of the lease at the time of sale. Taxes are also due at the time of sale on things like the acquisition fee and any other non-state dealer fees.
That’s why the leasehackr calculator shows you the taxes in the up front payment for New York residents.
No, you are wrong and so are your crappy articles. Educate yourself first before posting crap. You pay sales tax on the monthly payment not on a full price of the car in NYS. You DO NOT have to pay full sales tax up front on any leased car in NYS as you stated above. I have leased cars for many years now and never paid anything more besides first month payment and DMV registration, if anyone told you otherwise they lied to you.
Also I would suggest you read the article you quoted above, here is paragraph which contradicts what you posted:
“When you lease a car, however, you only have to pay sales tax on the amount the car will depreciate during the lease term. In other words, you only pay sales tax on a portion of the vehicle’s value - the portion you will use during the lease.”
So people keep talking about the “1% rule” (where applicable), but who can clarify what it actually is? Taxes are different in each state, so I don’t think it is fair to include those. Acquisition fee? Not all are the same.
I got quotes that are very similar to the OP. Unfortunately my gf’s A3 has a couple payments left, so I am going to roll the dice for another month I think. The payments are only 350 each so I might eat two to make a deal before the 18s aren’t around anymore. However, I spoke to a dealer who showed me that there are still 18’s that haven’t been delivered to dealers yet. 27 that are either delivered or still in transit that are identical to what she and I want in our region…
One dealership did offer a great deal today, they claim they were at 11% off and at the buy rate but it didn’t add up. If he was at the base rate with that kind of discount, the payments should be in the low 6’s. He never showed me his worksheet though.
So in my opinion it should be 1% of the MSRP of the car forgetting about taxes/fees since they vary by state and car. Also residuals change the payment and that depends on the mileage you get 7500,10,12,15k etc. I feel like some people think it should be 1% all in, but you cant compare apples to apples most times.
In the case of the OP, his money down was just covering the fees/ tax and the first payment. He was pretty close to 1% in my eyes. My hellcat was pretty close to 1% “all in” but I put down money for personal reasons.
Anyways im hoping the programs get slightly better tomorrow on the 18 SQ due to the amount of inventory and the 19s being in production (I believe).
You are wrong and he is right. You can apologize to him now.
Just so you understand before you mouth off again, tax being due upfront is not the same as tax being levied based off the sales price of the vehicle. NY computes taxes off the total lease cost, not the sales price, but it’s due upfront regardless.
If you personally can’t recall paying it upfront, that’s because it was capitalized into the lease by the bank, who paid it upfront on your behalf. You paid it back every month, with interest.
Yes I understand that, what he was saying previously is that it has to be paid up front as a whole not in monthly payments. I wasn’t arguing the fact that it has to be paid for the duration of the lease. He specifically said OP had to pay full tax up front which what made up his out of pocket payment so big.
Did you understand the part where I said you can pay taxes monthly and do not have to pay it up front. I understand how taxes are paid on a lease and when OP posted that he paid over 4K due at signing all I said that it was his option to do so and he could’ve split that tax in his payment.
Technically, you are not paying the taxes monthly. The taxes are all paid upfront and you are re-paying a loan (for the taxes) that you capped into the lease.
You’re the one who needs to educate yourself, I’m trying to explain to you that the taxes are paid up front but as I’ve explained you can borrow extra money to pay the taxes up front but you will be paying interest on your taxes. That’s exactly what you’ve been doing, I don’t know why you feel the need to come on here and repeatedly insult others as being uneducated instead of learning something. If you really think you know better than literally everyone else here telling you thaf you’re wrong and that you know better than even the NY State tax authorities then why even bother coming here?
Just because it’s possible to go and borrow additional money to make the up front tax payment doesn’t mean that the taxes aren’t paid up front. It makes the lease different than other states where it’s taxed every month on the monthly payment and not up front, since you’re paying interest on the taxes if you choose to borrow money to pay for them. You just don’t seem to realize that this is what you’ve been doing.
Either way I’m not going to address this anymore, if you want to be rude and stubborn that’s your choice in life. Hope that works out for you.
Probably impossible without msd or a one pay. I got to 1% on my sq5 on December 30th, 2017 in Los Angeles, doing a one pay lease. I also qualified for loyalty.
