Located in Houston, Texas. Looking to lease a Kia EV6 so I can take advantage of the $7500 tax credit that is being offered. Would then immediately buy out the lease. I think there’s a little wiggle room to get closer to $4000 discount from the current $3100 they are offering.
I have never leased before, so this is all new to me. Attaching screenshot of offer from dealer. Not listed are the following:
-Acquisition Fee: $650
-Sales Tax: $705
Taxes are lower thanks to some Texas lease credits, which will help to avoid the dreaded double sales tax on the buyout that applies in Texas.
One thing that is not clear to me - what would my actual buyout price be on this transaction?
Thanks - how much more meat do you think there is? I’ve contacted every Kia dealer within 200 miles and also gone through TrueCar, and best discount I’ve seen is $3800 off of MSRP.
Thanks. So by CCR, you mean trade in or down payment, is that correct?
If I made a large down payment or trade in (say $20K or $25K), that would reduce the buyout price, and therefore the sales tax that would have to be paid in Texas on such buyout?
Out of curiosity, why do you want to get this over Tesla Model Y. Model Y will beat EV6 in every category, especially in pricing. I was also searching for an EV6 last year, but during that time, the Model Y was priced at around $65K while the EV6 had a $7.5K federal rebate.
Biggest issue is that my wife is opposed to buying a Tesla. Also, we have a Telluride that is my wife’s car but I really like.
I test drove a Model Y and liked it, but to get most of the features that come with the EV6 on a Tesla, I’d have to go up to a Model X or S. Things like ventilated seats, 360 parking camera, instrument gauges, etc.
Between the $7500 leasing credit and dealer markdowns, I should be able to get the EV6 for around $10K below MSRP.
No, not military. We do have a vehicle financed with Kia, so I think we should qualify for the $1000 loyalty bonus, but I’m hearing different things from dealers.
If I go the purchase route, there’s $3750 cash back, plus $1000 loyalty, plus avoiding the acquisition fee, the small amount of double tax, and the cost of the loan to buyout, that brings the price difference to “only” around $1000, which may push me go purchase to avoid the hassle of the buyout.
Several dealers in Houston show it on their websites. Only applies to certain states, of which Texas is one of them. One dealer told me it only applies to 2022 models. One told me it’s not available. And three have told me that it would apply.
Thats good news, not sure how Kia calculates their buyout price when changing mileage and stuff but good luck with your deal since Texas is the most confusing state when it comes to leases and buyouts
Thanks to this forum, I learned about the double sales tax that applies when buying out a lease in Texas, and that dealers can offer lease credits to lower the sales tax on the initial lease to 1.2 or 1.3% (instead of 6.25%).
Does anyone know if a trade in or a large-ish down payment will also help to reduce the sales tax that would apply when buying out the lease? Almost seems like cheating if I made a trade-in or down payment of $15K towards the lease, only paid sales tax of 1.2%, and then bought out the car almost immediately at a lower price. Thanks!
You would pay sales tax on the sales price of the vehicle. So, if your buyout/payoff right now is $25k for example. You’d pay 6.25% sales tax on that figure. Down payment on the buyout would have no effect.
A trade-in might affect the amount you pay sales tax on, assuming it’s a vehicle that you own outright or is a traditional finance and you are facilitating the buyout through a dealer that is accepting your “trade.” Maybe someone else has some experience with that aspect of your question.
