2021 RAV4 XLE - Need advice on lease (info inside)

You don’t pay both sales tax on the upfront amount AND tax on the monthly like that

@AutoCompanion can you confirm how PA taxes are applied?

Here’s the dealer sheet with the original $20,000 trade-in offer:

the 6% tax you’re seeing there is for a retail purchase

Oh it’s motorworld. They’re trash. lease taxation is your sales tax rate + 3% usage tax, so 6% state + county or city + 3%. So 9-11% of monthly payments. Taxation on rebates is an asterisk, but you’ll get ‘close enough’.

It’s not a 20k trade, it’s like 450 in trade equity towards a lease.

Lease - on monthly according to local tax rate + 3%.

Purchase - only the difference between the value of the trade-in vehicle and the purchase price of the new vehicle is taxed.

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For my Honda Accord, Carmax paid over 1K higher than Carvana so check their quote out as well if you are near a carmax.


I’ve heard bad things but they have the best offer so far. ($32,747.29 after rebate)

Do you have other suggestions for dealers near them? I’ve spoken with Independence Toyota of Hazleton but they had a worse offer. ($33,999, no discount, and only $500 rebate instead of $1250)

Also, just to make sure I understand what you’re saying… are there no upfront taxes on a lease in this state? (are those $689.84 taxes shown on the form only for purchasing the vehicle?)

When I spoke to the dealer this afternoon he did mention taxes “going up around $400” or something like that.

I really apologize for being so confused and I can’t thank everybody enough for their help with this.

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