Hi!
I am considering a lease. A friend of mine works at a dealership in Texas and can get me by far the best deal off MSRP. I live in Arizona and that is where the Truck will be registered and garaged at. My question is; would I have to lease the car under Texas laws where I would have to pay taxes on the entire purchase price up front? Or would I be able to roll the taxes into the monthly payment per Arizona laws? As always, any help is greatly appreciated!
No, if the Texas dealer will lease you the car, they will pay NM taxes and will file the paper work and get you your NM plates. In a lease, the car belongs to the leasing company which bills you for the state taxes which they are responsible for paying.
there are other factors to consider getting out of state cars such as lemon law, regional/local incentives etc.
I’m trying to work out an out of state lease right now and the biggest stumbling block has been regional incentives and lease options. Since I’m outside of the dealer’s home region, it’s much more difficult to locate the correct applicable incentives and get a firm lease quote.
It’s a testament to the lack of transparency in auto sales that all of these numbers are not published by the manufacturer to the public. How much easier would it be to know the exact residuals, MF, incentives, etc for each car in each region so you could pick the right one for you.
Lease incentives are almost always based on WHERE THE CAR IS BEING REGISTERED, not where the dealer is located.
Ok so to be clear, sorry this is all so new to me, I would be subject to Texas rates and would have to pay taxes on the full purchase price up front, correct?
Bro1999,
Just saw this, ignore my last post. So I would be subject to AZs RV and MF as well as tax laws?
Should be. That’s how all GM leases work. I would assume the other manufacturer lease arms would be the same.
Ok great! Lastly, does anyone know the current December RV and MF for a 2016 F150 Lariat SuperCrew 2WD on a 36 month 10k miles lease?
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I am sceptical. How can a TX dealer offer you AZ incentives, RV and MF?
Where you register determines your TTL.
Max,
Well I live in AZ so the Truck would be registered in AZ, would be purchased from a dealership in Texas.
Taxes and incentives are based on where the car will be registered.
HOWEVER, things like lemon laws and doc fee caps are based upon the location of the dealership where you bought the car.
For example, I recently leased a car from a Maryland dealership but had it registered in Virginia. The upside? Although I had to pay Virginia taxes, I was able to take advantage of Maryland’s doc fee caps and lemon laws which don’t exist or aren’t as strong in Virginia.
[quote=“reedog117, post:12, topic:6151, full:true”]
HOWEVER, things like lemon laws and doc fee caps are based upon the location of the dealership where you bought the car.[/quote]
I don’t think this is universally true. If your home state has strong lemon laws, you would probably still be protected.
*IANAL (I am not a lawyer)
I leased a 911 thru Porsche Financial out of state. The car was at a dealership in TX and I’m in CA. Best price by far, no issues or hassles that I encountered. Any DMV estimates that are incorrect will be refunded after the paperwork goes thru. I received a large check for (DMV overages) about a month after I took delivery.
xpress,
That is the exact scenario I will be doing but instead of living in CA I live in AZ. When you did your lease at the Texas dealership, did they give you TX RV and MF or CA RV and MF? Curious to know exactly how it worked out before I get the process going
I’d think they give TX RV and MF - that’s were they sell their cars. But definitely charge you AZ tax.
MF was Porsche Financial nationwide - 0.0020. I had to fight with dealers nationwide to get this. Many tried to mark it up and I said see ya. One dealership even quoted me 0.002 and when I ran the numbers it was 0.0029! .The MF base rate is available but many/most dealers (Porsche, BMW, etc.) will mark this up and not tell you. Recent Honda sales guy tells me “… no one that leases ever asks me the MF”. Also make it clear that you are Tier 1 credit (if you are) as they need some assurance you aren’t going to come in with a 500 FICO score after they offered you a good MF.
RV is also set nationwide on BMW and Porsche and most cars. They can not change this # ASAIK.
Be careful also that the sales guy can offer one rate and you think you will be set only to find out the Finance guy later says “He can’t offer you that rate/price, not sure what he was thinking”.
How did you deal with California emissions standards?
This is a 15 sec Google question…
California emissions laws state new cars, (under 7500 miles), must be 50 state emission compliant (check hood emission sticker). If they are new, you can’t inspect the car. Used cars, (almost impossible if leasing) can be inspected. There are ofc exceptions found here, Link.