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)
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.
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. )
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.
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.
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.
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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