I live in Texas and am trying to lease an Alfa Romeo Stelvio. I was quoted a very minimal amount for “taxes” of around $250. I asked dealer to confirm that was right and they said “yep, thats all”.
1)I am confused as I know sales tax is 6.25% on a car in Texas and I thought I would have to pay it all? Anybody know?
my salesperson isn’t that sharp and even though he says “thats all” I am wondering if this is really a personal property tac the leasing company is trying to pass through to me a cap cost (and the sale guy is getting ready to hit me with the big 6.25% which he will want to roll into payment or have paid up front. He says the payments he is giving me “include all taxes”
I read something on here on another post about sales tax credits dealers can have and use (somehow). Do you think this is what is happening? They are vague on how they got these amounts.
I have a $30,000 trade they are offering me $32,000 for, and I thought/think that for calculating sales tax, they take the sales price, less the trade in “value” (not taking into account the $28,000 loan on my trade in) and then tax 6.25% of that difference?
the one I’m trading in is was purchased on a hybrid lease but its a ballon type note finance agreement from BMW, wherein the first 35 payments were at an amount i would have had under a lease, and the the 36th payment is a $28,000 ballon. Not a straight lease. Did this to do away with double taxation in case i decided to buy at end of lease. its in my name not a leasing company, I paid all the 6.25%sales taxes on it already…does that change anything you said?
You don’t know unless you calculate your taxes or they tell you
the one I’m trading in is was purchased on a hybrid lease but its a ballon type note finance agreement from BMW, wherein the first 35 payments were at an amount i would have had under a lease, and the the 36th payment is a $28,000 balloon. Not a straight lease. Did this to do away with double taxation in case i decided to buy at end of lease. its in my name not a leasing company, I paid all the 6.25%sales taxes on it already…does that change anything you said?
Not sure how the hybrid lease works but if the car is registered to you and you are the “owner” as they say, you should qualify for taxes on trade difference…
How would this situation work if we were to lease a car from Georgia or North Carolina, where we may be getting a better lease deal and then bring the car into Texas to register?
Looking at NC (for example) - it’s a 3% tax - so guessing - if car is leased from a dealer anywhere in NC - we have to pay the 3% tax regardless and then when it’s driven into TX - we’d pay only the difference? Texas is 6.25%?
Got to love Texas lease sales tax. Pay tax on full negotiated price of vehicle up front. 36 months later you want to do lease end buyout, you pay sales tax again on buyout price. Double taxation anyone?
At least we have the option of lender tax credits where applicable. A lot of transplants also find out the hard way that property tax is no joke in Texas.
