First post, but searched high and low but this is the most recent where I can find One Pay discussed.
I am trying to get the details (mainly about taxes) for the one-pay. The dealer I visited has zero exposure but I feel they are going to be good to work with on price.
I have a 2014 grand Cherokee that’s paid off to put toward the single payment.
2019 Sierra Denali 4x4 $64,400 msrp.
Texas - DFW (I know, backwards lease laws)
Student auth code in my inbox.
Hopefully we get silly high residuals and a tiny MF for February. I think I can score a nice deal.
If anyone has a broker or a dealer recommendation feel free to PM me. I’m not above paying for help. And feel free to call me names when you point to the thread I completely missed with all the info I am looking for.
What are you looking for? How tax is calculated on a 1 pay with a trade?
@mp11477 - that pretty well sums it up.
The calculator shows a substantial tax difference when I select one pay vs. regular regardless of trade in. Also, since I own the car out right, it’s possible that I get a better direct sell offer than a trade in offer… If I’m willing to hassle with it. If so, what are the tax consequences? I realize the process with a normal lease - it lowers the tax basis of the new vehicle’s to equal [Sales Price]-[Trade Value]. Is this different on a one-pay in Texas?
Oh, and in case you were wondering what vehicle/lease I was looking for:
2019 Sierra Denali 4x4 @ 24/36 mo and 15k mi/yr.
Taxes should not change whether it’s a 1-pay lease or paid monthly, except for the difference in interest paid…
However, you’ll definitely want to look into Texas sales tax credits which will bring the tax rate from 6.25% to around 1%. But they might be slightly less inclined to offer tax credits with a 1-pay, so you should definitely shop around as this might be the biggest differentiator when comparing deals.
I did run into a strange issue last year when trading in a vehicle where 1 BMW dealer would offset the sales tax, while another informed me that the state laws no longer allowed offsetting. Since then I haven’t been able to find out what the truth is. Sales tax credits should be the main aim though.
How do you approach the tax credit situation? “Hey I know you guys get tax credits from lease returns - how’s about passing some my way into the deal?”
If you trade in a lease for another lease you don’t get a tax credit - what I understand anyway.
I tend to mention it pretty early as it’s a good test to see if the sales person knows what they’re doing, easy to throw in during a conversation when test driving if you’re still comparing vehicles/trims. I’ve not had any dealings with Ram directly but have dealt with a couple of Alfa Romeo dealers, 1 which also sells Ram, and they were really good with providing competitive quotes via email so it’s easy to mention during the back and forth emails.
You can still get tax credits when trading in a vehicle, I did it last month when I traded in a Q5 for a Q7.
Well this is for a GMC. I don’t recall seeing anyone mentioning tax credits for gm vehicles one way or the other.
The first (only) dealer I visited with has zero clue. He’s a 23 year old kid. The first lease quote had the wrong residual so I’m pretty sure their finance dept doesn’t do many leases. That’s pretty common for the dealers in the part of town I was in.
They don’t seem very hungry for sales though. I’ve not been pestered nearly at all which is unusual.
Sorry, I don’t know where I got Ram from!
Sales tax credits are a strange Texan phenomenon, they’re returned to the dealer from the state but the way they’re distributed and rationed out is completely up to the dealership chain. I can’t remember seeing a GMC deal in Texas with tax credits but they should have them, you might need to speak to a few dealers though before one will play ball.
If you hit a brick wall with an inexperienced sales person I sometimes try and email the sales manager directly and explain what you’re looking for and they will tell you what they’re willing to do.
I found the GM Lease Tax guide:
It’s silent on the issue - which leads me to the assumption it’s irrelevant to tax calculation.
yeah, if it reduced the tax amount a lot more people would do 1-pays in Texas, especially as tax credits aren’t always available. Interestingly it does confirm the tax savings on trading in a vehicle though.
I’m seeing this on Edmunds:
I have no idea if this will
A) Stack with GM College Discount/Supplier Discount
B) Apply to a lease
Dealers aren’t giving me straight answers (imagine that!). I guess I can search the registered business listings for a GM dealer in Texas. **EDIT: Didn’t find one. Short list.
Also, this forum software package is awesome. Direct paste image upload for the win.
Here’s what Dealer A just offered (I politely said that won’t work):
15K Miles Per Year
Money Factor 0.00148
Residual Dollar Amount $41,242
Acq Fee $650
Security Deposit Waived
Yeah the GMC website isn’t much help as it doesn’t detail or explain incentives. I did see a lease example on the normal Sierra which mentioned $2500 in incentives but doesn’t say what they are from or what they apply to.
Generally College incentives don’t stack with fleet/employer incentives, but tend to stack with everything else. Not sure if that Consumer cash will apply to leases, someone here will know as it looks like a generic GM incentive across all brands (@ChevyPhil or @chevysalesgirl are fonts of knowledge with GM and might be able to chime in here).
to help with incentives, i need more info. can email or message.
in regards to onepay, my understanding that is in Texas you pay taxes based off the entire MSRP not discounted selling price.
You pay taxes on the "agreed’ upon price w/ the dealer.
Ironically, when they apply for tax credits the deals end up beating other states on total tax paid…