Good morning all,
Let us say you decide to pay taxes up front (New Jersey - 7%)… If the vehicle ends up being a total loss, do you recover any of those taxes? Technically, you prepaid taxes on a payment that was not yet made, no?
Thanks!
I’m nearly certain you don’t get them back, but I could be wrong. I would roll it in with the payment because our tax rate is now 6.875% and it’s going down to 6.650% on January 1st.
Then you pay interest on the taxes, right?
No i had a total loss on a lease a while back. You don’t get anything back. But i eventually did get msds back. Thank god i had gap insurance thru progressive.
Thank you for the replies.
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Yes you do, but if the MF is nearly 0, you’d be insane to not roll it in
If you toll the taxes in, you get charged interest on the taxes, no? It seems like a gamble either way…
Yes you get charged interest (as I said in the reply above you), but when the money factor is very low, it makes sense to do so. Even when it isn’t, I prefer to just roll everything into the lease because the amount of interest isn’t too bad
Understood, thank you.