Hello,
I am interested in selling my car, and leasing a new car. However, I recently purchased the car, and had to pay ~$1,200 in sales tax at the DMV. I understand that if I purchase a new car, the value of my trade will offset the purchase price for sales tax purposes. I am wondering if there is any such credit for a lease? I am in Florida.
Thank you.
Kind of, it would reduce the cap cost, so you’d pay less monthly tax and less rent charge. But the thing to consider is the risk of the vehicle getting total’d out and you having no recourse to recoup the money if the appraised value of the vehicle is substantially lower than the payoff at time of loss. GAP would only make the captive whole, not you.
We always recommend having the dealer cut you a check when trading in a car, or selling it alternatively (Carvana, Vroom, other dealer, privately, etc).
unless, it’s valued high enough to cover an entire one-pay lease, in which case you’d have zero payment and have no risk of loss.
Are you talking about your Optima?
Ok, but if I just took a check, I would not save on taxes built in to the lease?
And yes, this is for the Kia Sorento mentioned in the post. We love the car, but wish we would have gotten a nicer trim. Trade value is $22,000, so just trying to crunch the numbers…
The taxes are based on the monthly payment, so obviously lower monthly = lower taxes. You’re missing the forest for the trees and not considering the rent charge you’d save from having a lower cap cost, depending on MF it could be substantially more than the taxes. But again the risk is that you lose that entire trade in the event of a total loss, Ive seen threads on here that Kia doesn’t reimburse a dime for a loss even if you have positive equity.
It’s your call if you want to risk thousands to save a few hundred.