Tax Credit Question with a Trade on a New Lease in Ohio

Hi All,

I just traded in my old car for a Hellcat lease. It looks like OH is one of the states that requires the tax payment upfront on a lease. Given my trade in was around 30k and at a 7.5% sales tax rate it would have saved me $2,250 in taxes if I were to buy a new vehicle. With the lease I was charged close to $1200 upfront taxes and dealer told me that my trade in did not offset that. I talked to every single “finance” person they have and even sent them a copy of the state tax code but did not have any luck. Given how good the deal is I gave up… I would really appreciate if someone could educate me on the issue.

Thanks in advance!

Hopefully this chart helps.

I also sent this to the dealership… All they do is just plug their numbers into their software and tell you that is what you owe lol…

My experience in Indiana is that the salespeople aren’t very knowledgeable on those issues. I’d ask to talk to the finance manager. I believe that Indiana and Ohio have similar policies regarding vehicle trade-ins. Namely, if you trade in something whether it be a car, boat, or plane on a “like vehicle” you can deduct the trade-in value from the price of the new vehicle for tax calculations.