I just signed a lease for a Kia Carnival SX prestige yesterday(and haven’t taken delivery yet). The deal seemed good (9% off MSRP) in addition to 1800 rebate. I believe, generally, it’s ideal to buy this car instead of leasing. I was planning to hold the car for less than 2 years. I am planning to buy back and sell to avoid Sales tax, or if there is negative equity, just hold it till 2 years. Is there any problem with this approach?
When are you planning to sell it? How much will you pay in interest until that time? Will it be more than the sales tax you would pay if you purchased it today? Was there zero rebate for purchasing? How much money are you going to make with the money in your account since you leased instead of buying cash?
Some questions you can ask yourself to do some napkin math.
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Thanks for the pointers! Yea, I have done the math. The interest is about 5k
$(around 6%) which is the same as the sales tax. Rebates for financing are 800$ lower which is mostly going to offset the acquisition fee. Wondering if there is anything else hidden in lease fees that I might be missing.
My guess is you will be in a negative equity situation in two years, but I really don’t understand how you are planning to avoid sales tax. Do you mean trade the vehicle to get out of the lease in two years. Maybe CA has some way to avoid paying sales tax on buyout that I am unaware of here in MD.
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CA taxes the lease payment or sales price of new vehicle purchase. In CA if you buy out a lease and resell it within 10 days you can recover all the sales tax paid on the buyout (not on each lease payment).
Disposition/buyout fee at the end.
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You are aware you paid a fee called Acquisition to get a lease right? That discount is shrinking
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