Reduced Taxes on Lease when trading in vehicle in NJ?

Ask the Hackrs
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1

Question for you Hackrs:
Do you save on sales tax on a new lease when the dealer “buys” out your vehicle? Keep in mind the vehicle I’m trading in is actually a lease with one payment left. The dealer put it into the deal sheet and I noticed the taxes were reduced significantly (<$100). I inquired with the finance manager, and he said it’s due to the taxes already paid on my trade in, which I think is false since I technically only paid the taxes on the depreciation, not the entire vehicle.

Anyhow, anyone have experience to share? At the very least, perhaps this is another way to “hack” lease deals to avoid taxes.

2

In NY I think you get tax savings on any equity you have in a vehicle when you lease, and the total value of the traded vehicle on a purchase regardless of equity. If he was saying you save 100 bucks maybe you have 1200 or so dollars in equity, that’s the only reason I can think of.