Question for Texas trade in and taxes

Question about taxes in Texas. One of the biggest challenges with leasing in Texas is the 6.25% tax on the purchase price. When buying a car if you trade in they subtract the trade in value from the value of the car and you are only taxed on the difference. Is this the same for a lease.

If you are trading in a car that is NOT a lease and leasing a new car, yes tax credits will apply. If you’re trading in a car that is a leased car then tax credits are not applied.

Also, not sure if this is the case with all manufactures, but with Toyota every month there is a list of vehicle that Toyota pays the tax on for you (leases only).

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Not the same for lease to lease unless the captive allows for it.

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Famous tax credits. Best way to get a good deal in Texas.

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Ryan,

Are you in Texas? We are really interested in a hybrid highlander but the dealership we went to said demand was too high and they aren’t doing leases. We have a Mazdaease that ends in a month. Trying to figure out if we want another Mazda or switch brands.

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Yes, I am in Houston. Dealerships out here are so crazy. They flat out refuse to do leases. Works out good for me though lol.

I have an Opulent Amber Platinum Hybrid and a Ruby Flare Pearl Limited Hybrid arriving before the end of the month. Tax credits on Highlanders this month as well.

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