Maryland Leasing

Based on everything I have read and some dealers I have spoken to, leasing in MD is a flaming pile of trash. Mainly because of the tax being levied on the sale price vs the monthly payment. I have a few friends in PA who have gotten unreal deals (some from the marketplace here). I am just wondering if I would be better off just getting away from leasing entirely in this state and buying.

I probably am going to move soon for work (6 months) to another state. Most likely Colorado, maybe NorCal.

I am looking to lease a car where the sale price is gonna be 45k+, so the tax is kind of screwing me in MD. I would be completely comfortable leaving the state if it meant a better deal (I know it won’t change the tax), but I noticed there are no posts on marketplace outside of NY/NJ/CA only.

Was wondering if anyone on here was from MD and what their strategy was to get a deal. Did you go with a dealer in MD, PA, NJ, NY? Did you uproot your family and destroy precious relationships to move to a small one bedroom apartment in southern California to save 40 dollars a month on a loaner BMW? If so how did the dog take it with a smaller/non-existent yard? (Don’t really care about wife and kids in this, they can live in the leased BMW)


Wow! I think you need to check yourself into a sanitarium. Buying or leasing a car is the least of your worries.

Sanitarium, not a bad song by Metallica. Not the best on that album, but I like to force references where I can. Making your wife and kids to live in a lightly used luxury sedan seems like a small price to pay for a lower monthly.

Nice one, don’t mind Delta :joy:

You get screwed on taxes no matter what. That’s why leasing sorta blows in MD, unless you can get an unreal, leasehackr worthy deal (like I did a couple of times. :stuck_out_tongue: )
Only way you can offset the tax is if you have a trade-in. Then, whatever the value of your trade in is cancels out that much of the price that can be taxed on the new car. Valid for purchases or leases.
Example: You want to lease/purchase a $20k car, you trade in a $20k car to that dealer = $0 sales tax due on the new leased/purchased car.

Or move north of the Mason Dixon line :wink:

They didn’t teach sarcasm in the University I see.

Do you have a car now?
Depending on the transaction you can deduct the value from your tax liability.
Also MD is a good state IIRC doc fees are capped and some say that dealers are competitive here to mitigate the tax issue.

Nice to see this as I’m curious about a similar issue in VA, since I’m being relo’d for work. I’m comparing VA and MD as we speak.

4.15% vs. 6%, but there is also property tax in VA. Without property tax VA leases would be comparable to the leases in high tax states that tax the lease payment.

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For Alexandria, I’d be looking at 5% personal property tax plus the 4.15 sales tax on total sales price. Fuckers.

It is not straight 5%, there is tax relief.

Personal Property Tax Relief Tiers
The method for distributing personal property tax relief to qualifying vehicles is structured as a tiered system, based on the vehicle’s assessed value.

The Vehicle Personal Property Tax rate approved in the FY 2018 budget is $5 per $100 of assessed value.

Under the new tiered system, qualifying vehicles assessed at $1,000 or less will continue to receive 100 percent relief. However, qualifying vehicles assessed at $1,001 or more would receive the following personal property tax relief. Please note that PPTRA relief is prorated for vehicles owned for a part of the year.

Under $1,001: 100% relief
$1,001 to $20,000: 55.5% on the first $20,000 of assessed value (Maximum relief of $555)
$20,001 to $25,000: 45.5% on the first $20,000 of assessed value (Maximum relief of $455)
Above $25,000: 35.5% on the first $20,000 of assessed value (Maximum relief of $355)

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Appreciate that, thank you!

That cost is likely worth it not having to deal with those damn MD drivers.