I have 6 months left on my lease, if I trade in my car early to a dealer and get a new lease, do I qualify for any tax credit in Texas? I originally paid all the tax up front for entire purchase price as is required here in Texas.
No you do not.
I think owners choice does qualify under this though but haven’t dealt any of those types of lease returns.
If you trade in the car, with the dealer buying it/paying off your lease, then you would get a tax credit - it’s the same as any other trade. That said, you could have a lot of negative equity depending on the situation, which would reduce or eliminate the benefit of doing this.
If you just pay the remaining payments and dispose of the lease or do a pull ahead, then I believe the answer is no.
I am about even on the trade in maybe $1000 behind. Tax credit would be $2800 so still worth it if I can get it.
I dont believe a trade in of a leased vehicle would work that way in Texas. The finance company would be entitled to any sales tax credit since they are the registered owners of the vehicle. The only thing you would be entitled to would be positive Equity, which would be used as a cap cost reduction or you could request a check/payout of that equity from the dealer.
The only way it could work is if you were doing an “Owners Choice lease” which in reality is a purchase finance with a Balloon payment at the end that you have the choice to keep or turn in. In that circumstance sales tax credit could come into play. But you would have to be going from a purchased vehicle to owners choice lease. Or an owners choice to owners choice lease.
You do not get a “tax credit” or savings in Texas when you trade in a leased vehicle before the lease is up. This was confirmed to me by a few different dealers/salespeople back in 2018 when I wanted to trade in my leased GS350 for a BMW or Lexus. Sewell Lexus and BMW both told me that as well as Autobahn BMW. I think in years past you could do that but the state wants their $$$
Can confirm. My latest deal had a lease turn in and no tax credit.