Just kind of exploring this possibility here, but my understanding is that you pay zero sales tax on an EV in New Jersey. Does anyone know how the incentives are treated? Are they exempt too? What about any negative equity, does that get taxed?
Paging @HN308
He had the i3 deal there. I believe you’re right 0 sales tax on EV’s, but he probably knows more.
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There is not tax on fully electric cars in NJ and i3 with REX is considered fully electric even though it has a small engine.
The incentives are tax free as well.
All you do is negotiate the selling price, deduct your incentives that you qualify for and you have your cap cost.
In your case of negative equity, I think you already paid taxes on it when you signed up for the lease which generated negative equity, if you paid your taxes upfront like we do in NJ/NY but you could have rolled it in cap cost as well which might make it little more complicated.
If I were you, I would pay off the negative equity before signing a new lease as BMW MF is not cheap and if you roll the negative equity into new i3 lease, you will pay interest on it for next 2-3 years depending on your lease term and make the tax calculation more messy.
I suggest people to roll negative equity to new lease only in case where MF is almost zero like Infiniti has it at most times.
HN.
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Thanks, I think it might be a moot point since it looks like the Volt doesn’t qualify in NJ after some more investigation, I think only the Bolt gets the exemption. This is definitely good to know though. The incentives were what was tripping me up in calculations.