“(E) For a new motor vehicle that is leased, the total of the base payments pursuant to the lease agreement.”
This Act shall become effective on January 1, 2018, and shall apply to all tax years beginning on and after such date.
So it looks like Georgia is fixing the law that killed leasing. Will now pay tax on the leased part of the car instead of full value. Great news! How will this affect dealer pricing early 2018? Do you think they will offer less discount? Depending on how many people interested in leasing late 2017 are willing to wait, sales will be dead. Do you think they will try to make late 2017 walk out pricing more competitive?
Thats what I’m wondering - looking to lease a Quattroporte in GA. I’ll get back to you guys Saturday and see if there are any deals for leasing now versus in January.
I’m still a little confused on the implementation. Is it now going to go back to just taxing the monthly payment, or will it be the up front payment required on the leased portion? Those amounts should total to be the same, but how will they collect?
This is such an amazing forum and thread! My parents in Atlanta want a lexus rx350, but I told them to wait until January 2nd, which is the date the december to remember ends.
If they buy a car on Dec 30, 2017, they will have to pay $1800 more in taxes (roughly $50/month)than if they were to wait until January 2nd. I went to the dealer yesterday, let them know that we want to start the credit app now and take delivery on exactly the 2nd. When questioned why, I told them about the tax code change.
The salesperson had no idea what I was talking about, so he called the finance manager who started asking questions about my job and how much time I spend researching cars. He was shocked.
Thank you to the OP for posting this and saving my parents $1800!
Even the finance manager said with the change, it will only change the payment a few bucks and whipped out an extra $500 coupon rebate from Lexus for GA dealers only I think. I told him he was wrong and it was more like $50. He soon left the desk haha.
It looks like the incentives end on Jan 2 2018. So does the new tax structure take effect on Jan 1? And will GA Lexus dealer’s systems quote the correct pricing on Jan 2, since the 1st may be a holiday for back office staff performing the new year tax changes?
knowing how these dealers operate, they’ll mess up somehow and you’ll end up paying more. They need to investigate and give you the pricing in writing.
I was wondering if anyone has worked any lease deals with the tax changes specifically a loaner? I am trying to wrap up a deal on a 2017 BMW demo car (only 2k miles so it qualifies for new lease programs) but the car was titled under the dealer so technically is not “new”. The dealer is investigating as well on how to go about this since the new law states its for new vehicle leases and this one is now CPO. Seems like this is somewhat of a grey area.
