Well they tax the whole car, right? I’m guessing that would be double dipping if they did that.
Edited prior post to make the correction you pointed out regarding rebates NOT taxed in TX. Thanks
Agree. But TX double/multi dips leases in different ways:
You pay tax on full Cap cost (minus rebates), rather than on monthly payments or the depreciated cost
You pay sales tax again, if you buy the vehicle at the lease end
And worse yet, if you sell your vehicle to individual party - that buyer pays sales tax
This gets interesting further - if you traded-in your leased/in-lease vehicle, you do NOT get tax-savings on trade-in price !!
Haven’t heard with certainty - if you do swap your lease to somebody else out of state, or other way around, you assume lease of somebody else from out-of-state., what would happen - do you (or swapper) owe taxes again – not clear !!
Think - there are multiple other gotcha’s regarding leases in TX, especially, if you want to swap-out or swap-in leases in-and-out of TX state. No wonder we hear rough stories on the net with no concrete evidence, nor human readable interpretation without legalese (tried to read law, looks quite vague infact, but I ain’t no lawyer/tax-expert)
Actually, you do get tax credit on the residual or value of the vehicle when trading in. So yes, going in you will get hosed at least once, but it mitigates the tax liability on your next purchase or lease.
Certain 99% NO on that on leases in TX. Would love to see some document of such trade-in, or the law (with lease that is; we are not talking about fully owned car).
Multiple times it was made clear by multiple dealership that: no tax-credit on traded-in value for leased vehicles when trading-in (In TX)
Every time I’ve traded a car in, the tax liability has been reduced by 6.25% of the trade in’s value. I’m sure bits and pieces are lost in translation but that has been my experience thus far.
Agree - on fully-owned car.
Does not apply to Leases in Texas.
That doesn’t say what you think it does. On the contract GM says if your car is totalled under a one pay, they will give you a credit for prorated unused lease payments, and then deduct the gap between insurance payout vs lease cost from said credit.
Here’s a basic example. You lease a car for $5k one pay with $20k residual, it gets totalled two minutes after you take it home, insurance pays out $21k.
Had this been a normal lease, the gap would’ve been $25k-$21k and gap insurance kicks in to cover the $4k. But because it’s a one pay, gap insurance may not apply. According to the contract you linked, what happens is GM prorates you the $5k onepay and then subtracts $4k for the gap, giving you a refund of $1k.
I’ve not seen any paperwork that shows gap insurance applies to one pay leases.
Not sure what you think that ad proves…plenty of contradictory sources online saying gap does or does not work with gap insurance.
Contrast the above total-loss situation with a normal monthly payment lease. If you total your car, the lease company picks up financial responsibility for the difference between what you still owe on the lease and your insurance settlement. This is known as “gap” insurance and is automatically included in most leases. You would lose nothing except your insurance deductible. This is one of the benefits of leasing a car using little or no down payment cash.
Gap coverage, even if included in your pre-paid lease, provides no benefit to you. It does not cover your cash losses — exactly the same as if you purchased your car with cash.
Like I may have mentioned before - personally seen two cases of OnePay/Pre-paid Lease offered full refund of “prorated” remainder amounts - YES in conjunction with GAP interplay. But. that is with luxury brands. Dunno with GM/Buick - how (or how well) GAP works in prepaid leases.
Now - coming to our specific scenario - would definitely expect Total loss insurance payout (plus sales-tax reimbursement) could be higher than our cost ~~ $17.2 (14.7K residual + 2.5K prepaid amount). Especially with insurance carrier in top 2 customer rated/respected; We accepted this possible grey area – with or without GM/Buick’s GAP - and if/how-well it works. We’ve saved $250-$300 with OnePay in this case.
You just have to figure what amount of risk to take vs the amount of savings.
Ideally though - would want to get full sales-tax credits ($922 in this case) be applied on GM One-Pay/Full-pay leases., Lexus does that in Texas.
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Adamcar - thanks for the reference. It did confirm my hunch regarding Too many rebates can’t be applied to make the depreciated value fall to/below zero. This Doc seemed to validate my hunch that - finance manager couldn’t have removed the $650 lease fee for an additional 0.00075 in MF. If I’ve chosen that route, the depreciated value would have been in negative value ( minus -$13 or something). Hence, we promptly accepted normal MF, then some MF reduction (savings to us) due to OnePay.
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Can you share a quick copy of your numbers on the lease agreement?
Also the sales persons contact info would be helpful.
Fellow Texan - Frisco resident.
Thanks in Advance!
you still have access to the GM playbook that was taken offline last year…Envious.
They forgot about Canada though…that’s still floating in the cloud.
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I’m almost considering one of these cheaper leases over a Bolt now to keep miles off our aging Lexus. (Starting to nickel and dime us)
Is it the Sewell Buick store next to Cadi?
How’s the insurance on that Buick?
There are too many variables on insurance for his premiums to mean anything for you. You should get a quote from your insurance company or broker.
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Beat me to the punch…Pick a VIN online, and get a quote.
True, was just curious on that.
Either way one of these deals would be cheaper than a $3-4,000 repair bill on the LS.
With the high fixed cost of insuring and registering a car, I’m not sure if it ever makes sense to get a second car to “keep the miles off” a first car. Unless it’s a real collectible, which honestly the LS is not.
Maybe dump the LS to get the Encore or something nicer than the Encore?
If you’re expecting a repair bill like this in the future, why are you hanging on to it? You’d be better dumping it now and getting something out of it.