Hi all, Trying to figure out a few scenarios and determine what makes most sense. Read many posts but still very clear so here it is.
I’m in South Florida and currently own a Land Rover LR4 (paid off) and I want to get into a lease. If my car is worth $20K which is about $1,400 in taxes (7%) on a trade in and I lease a car where the 36 months would cost me $20k, would I be able to lease it and not pay taxes during the 36 months? My perfect scenario would be for the dealer to offer me $20k, take 1st payment and cut me a check for the difference.
Is this possible? I already have a Carmax estimate but If I can save taxes on the new lease I’d obviously rather go that route.
Thanks…
The tax savings you are speaking about is for purchases and certain states which tax the entire amount of the car for a lease. In a monthly lease tax state (I think FL is but others can confirm), it wouldn’t offer any benefit. Sell the car to dealer who gives you the mist for it and have them cut you a check, not use it as a CCR on the lease. In a way, it’s a bit liberating because you don’t have to combine the two transactions together and hope the same dealer gives you the best deal on both.
Washington allows you to exempt tax from leases in whole or in part using a trade-in value, but so far the only dealer I’ve had that understood it, could not figure out how to make it work in the finance system.
