Worst leases you've seen

Oh yeah you better believe I’d keep OOS on anything nice if I lived in VA. At least in Texas you pay the sales tax and you’re done save for the very nominal registration dues yearly but screw that PPT crap.

1 Like

Oh yeah, this is how the middle class cheat taxes and save a few thousand bucks. The truly rich are much more creative with CPAs and tax lawyers.

2 Likes

Thanks for being patient! So after doing some digging, it’s going to take over $12,000 to get you to $500 / mo on this $61k Rubicon. There are less expensive options, but you did pick out a pretty loaded Rubicon! Just to give you an idea, this has over $16,000 in options on it!

2 Likes

Hey, some of us tax lawyers are more honest than others!

4 Likes

I am surprised I have not seen people here mentioning to create a business in Montana and register the lease in the business since there is no sales tax or property tax. Almost every exotic car has a Montana license plate since it only costs a few hundred dollars to create and maintain an LLC.

2 Likes

While that would work in some states, it wouldn’t help in personal property tax states like VA, MO or NC. It’s the presence of the property in state that makes it taxable not the registration.

And I’m ok with that since the Montana loophole is likely tax fraud for people leasing a vehicle. Now, a car collector who buys cars with the goal of them appreciating in value would be well within his rights, and well advised, to form a MT LLC, since that is a legitimate business venture.

1 Like

Thats really popular with trailers in the northeast. Everyone’s trailer is registered to Maine.

3 Likes

Maine doesn’t charge sales tax on trailer purchases. I had commercial trailers registered in Maine but operating in CA. Never had an issue. It was actually a registration service I used who did it for me. When they were purchased the lady said “ok - trailers are going to be registered in Maine”

2 Likes

In CA, you must register any vehicle driven inside the state more than 6 months per year, even if the owner isn’t a resident. A Montana tag and LLC ownership on a car driven 5 months a year inside the state is tax avoidance. On the 183rd day, it becomes tax evasion. It’s very common and very stupid - if you can afford the car, you can afford the taxes.

5 Likes

Exactly! It’s too funny.

1 Like

That was mentioned by @Electric several post above yours. Scroll up.

2 Likes

yes but then u also have CA insurance. My boss moved from OR to CA and didn’t change his registration for 3 years.
I also know someone who moved to CA from IN and when he first got a quote for CA insurance, decided he wanted to keep his IN for the remaining 8months atleast.

1 Like

If the taxes on the car were $300,000 a year, but you could afford them, would that still be reasonable?

3 Likes

600 a month with a 1000 down on a 2018 compass limited 12k miles a year.

2 Likes

Yes, because my billion dollar company paid $0 in taxes that year and this car is also a business expense.

2 Likes

Eww…You’d have to pay me that to take a Compass. I’d still drop it off in the hood with the keys in it.

3 Likes

actually Maine does charge sales tax, but if you transfer registration, your sales tax transfers too. I’ve transferred the same 5-year maine plate to three different trailers and never paid sales tax, but I did pay on the initial registration.

If Massachusetts were less stupid about their $$ 1-year registrations and then excise on top of it on a 16 year old trailer, I’d pay them.

That said it’s legal in maine as long as you use the trailer in “interstate commerce” more than 80%, eg, as long as you don’t use the trailer in Maine they don’t care where you are.

1 Like

Thankfully it’s not mine. A chick i know went to the dealership by herself to get her first new car … had to be a jeep because thats what all the other girls at work drive…

1 Like

Saw this gem on Edmunds forums… I just had to shale my head on the down payment with MF offered. Mods reply “looks solid” :scream:

2019 Audi A4 45 TFSI (2.0T) quattro (premium plus)
MSRP: $47,995
Lease: 36 months, 7.5k miles per year
Selling price: $38,495
Residual (50%): $23,997.50
Money factor: 0.00021
Sales tax: 6.625%

Down payment: $9,100.00 (includes first payment, fees, taxes, registration)
35 monthly payments : $249.00 (includes tax)

I feel like it’s a decent deal… any feedback?

3 Likes

Typo, obviously :slight_smile:

1 Like