Lease Payment Changed by $1.14?

honda

#1

Has anyone had their lease payment adjust mid lease due to taxes changing? This is my 10th lease and Honda just changed the payment and the customer service rep said it was because of taxes. I took delivery 30 miles from my house, same county, different city. I have leased in different cities before in the same county and this has never happened. Is this strange?


#2

Yes it’s happened to me twice. Once when I moved to a different county with higher taxes and it just happened again a few months ago when my county raised taxes for 6% to 7% payment went up in both my leases. This is normal.


#3

Have the tax rates in your state, county, or city gone up recently?


#4

This happens when tax rates change and the individual monthly payment streams are taxed month to month. One small advantage of taxing sell price or taxing the sum of the base payments is that you’ll never receive a tax adjustment if tax rates change as you’ve already paid the taxes upfront even though they may have been capped in the lease.:smiley:


#5

Looks like the tax rate when from 8.1% to 8.3% in the last month. Thanks for the input all.