Help get out of my 2010 lease.
02-12-13, 09:59 AM
#16
@SW10ES - I got ya, Thank you for the clarification. I just spoke with the dealer, he said there is no sales tax credit for you cause you don't own the car, the bank owns it and they don't negotiate or won't negotiate the pay off amount which is 25k. So they can't do anything now and I gotta wait till march to see if another program comes out and then the dealer said he is going to "attack" my account again. I truly hate dealing with them, its frustrating!
@Cossie1600- Thank you for your feedback, the mileage is 10k over present day. I did shop around, seems like no one can do anything, i even went to infiniti and the guy over there said for a G37 Coupe, he can put me around 459 a month with getting me out of my car.
@Cossie1600- Thank you for your feedback, the mileage is 10k over present day. I did shop around, seems like no one can do anything, i even went to infiniti and the guy over there said for a G37 Coupe, he can put me around 459 a month with getting me out of my car.
If you want to keep it simple for calculating purposes, figure out your buyout and add your remaining payment. Go to carmax and get a figure on how much they will give you, then you will know how much your negative equity is on this vehicle at its present time and condition and mileage. You might just say to heck with it and buy the car at the end of its lease term and avoid the over mileage too
02-12-13, 12:42 PM
#17
Lexus Fanatic
@SW10ES - I got ya, Thank you for the clarification. I just spoke with the dealer, he said there is no sales tax credit for you cause you don't own the car, the bank owns it and they don't negotiate or won't negotiate the pay off amount which is 25k. So they can't do anything now and I gotta wait till march to see if another program comes out and then the dealer said he is going to "attack" my account again. I truly hate dealing with them, its frustrating!
The sales tax credit comes about because they can only charge sales tax on the total cash from you in the transaction. So...if the RX is $50,000 and they give you $20,000 for the ES, they only charge tax on the $30,000 difference, whether the money they gave you for the ES went to pay off a lien or not.
Originally Posted by cossie1600
Your mileage does not matter. There is no penalty if you are buying hte car. As I said in my example, if your buyout is $20K and you owe 10 payments of $500. Your payoff to buy the car is $25K if you want to buy it today. At its present mileage, if the dealer were to give you $20K. You are responsible for paying the $5K difference, that is it. The over-mileage is part of that $5K already once you figure in depreciation. You only pay the penalty if you return the car at the end of the lease.
Stop thinking of the lease as a lease, the car is yours, the type of financing is simply a lease. Think of it like balloon financing.
02-12-13, 12:51 PM
#18
The dealer is lying, or stupid. If they take the car in on trade and give you the amount they offer, that amount is paid to you whether its a lease or not. The lease is simply a lien that is paid off, whether its a lease or a loan. My 2010 ES was a lease, the dealer gave me $25,000 for it. My payoff was only $24,000...so I got $1,000.
The sales tax credit comes about because they can only charge sales tax on the total cash from you in the transaction. So...if the RX is $50,000 and they give you $20,000 for the ES, they only charge tax on the $30,000 difference, whether the money they gave you for the ES went to pay off a lien or not.
The sales tax credit comes about because they can only charge sales tax on the total cash from you in the transaction. So...if the RX is $50,000 and they give you $20,000 for the ES, they only charge tax on the $30,000 difference, whether the money they gave you for the ES went to pay off a lien or not.
I've never heard of that but it seems wrong because you don't own the 'leased' vehicle.
02-12-13, 01:19 PM
#19
Racer
Now, if you had to pay sales tax on the full about of the car with that $1, that's different, but here I would only pay $0.13.
02-12-13, 01:21 PM
#20
Lexus Fanatic
Whats at issue isn't the "ownership" of the vehicle, but the way the money changes hands at the dealership. If they take a trade and pay you money for the trade, the sales tax is calculated off of the net difference, regardless of what liens may have been paid off.
This is NOT the case if you turn the lease in, only if you TRADE it in. My dealer for instance never takes leased cars in, they always trade them in as long as they can offer the customer what their buyout is at least, because it saves the customer sales tax money. Even at the end of the lease, which is why I don't really worry about mileage.
Here's an article about it:
https://www.galves.com/t-galvesnfSaveHundreds.aspx
Its best not to get hung up on who "owns" the vehicle. For instance, I have a lease title from the Maryland MVA for my GS, even though its a lease. Its simply a method of financing the vehicle, thats all it is.
LOL, its not tax evasion at all, its how sales tax is collected on vehicle sales. You only pay tax on the difference between the purchase price of the vehicle and the trade. This is 100% legitimate, I just did it.
Your analogy would not work, because you would have to pay sales tax on the original $50,000 car, you just wouldn't have to pay it on the new $50,000 car. You pay sales tax on the vehicle's MSRP, not what you pay to lease it in many states. If you live in a state where thats not the case all of this is moot.
The point is that you aren't paying sales tax on vehicle value you've already paid tax on. I paid sales tax on $36,000 when I leased my 2010 ES. When I traded it on my GS, I got $25,000. I did not have to pay sales tax on $25,000 of the $54,000 purchase price of my GS. Saving me $1,500. I already paid tax on that $25,000 when I leased the 2010.
This is NOT the case if you turn the lease in, only if you TRADE it in. My dealer for instance never takes leased cars in, they always trade them in as long as they can offer the customer what their buyout is at least, because it saves the customer sales tax money. Even at the end of the lease, which is why I don't really worry about mileage.
Here's an article about it:
https://www.galves.com/t-galvesnfSaveHundreds.aspx
Its best not to get hung up on who "owns" the vehicle. For instance, I have a lease title from the Maryland MVA for my GS, even though its a lease. Its simply a method of financing the vehicle, thats all it is.
Originally Posted by Droid13
Yea, sounds like tax evasion to me. If that was the case, I think there would be "1 minute leases". Pay a dollar to lease a $50,000 car for 1 minute, trade it in for another $50,000 car, no tax.
Your analogy would not work, because you would have to pay sales tax on the original $50,000 car, you just wouldn't have to pay it on the new $50,000 car. You pay sales tax on the vehicle's MSRP, not what you pay to lease it in many states. If you live in a state where thats not the case all of this is moot.
The point is that you aren't paying sales tax on vehicle value you've already paid tax on. I paid sales tax on $36,000 when I leased my 2010 ES. When I traded it on my GS, I got $25,000. I did not have to pay sales tax on $25,000 of the $54,000 purchase price of my GS. Saving me $1,500. I already paid tax on that $25,000 when I leased the 2010.
Last edited by SW17LS; 02-12-13 at 01:26 PM.
02-12-13, 01:24 PM
#21
Yea, sounds like tax evasion to me. If that was the case, I think there would be "1 minute leases". Pay a dollar to lease a $50,000 car for 1 minute, trade it in for another $50,000 car, no tax.
Now, if you had to pay sales tax on the full about of the car with that $1, that's different, but here I would only pay $0.13.
Now, if you had to pay sales tax on the full about of the car with that $1, that's different, but here I would only pay $0.13.
Then the state would come after you for the sales tax number.
02-12-13, 01:30 PM
#22
Whats at issue isn't the "ownership" of the vehicle, but the way the money changes hands at the dealership. If they take a trade and pay you money for the trade, the sales tax is calculated off of the net difference, regardless of what liens may have been paid off.
This is NOT the case if you turn the lease in, only if you TRADE it in. My dealer for instance never takes leased cars in, they always trade them in as long as they can offer the customer what their buyout is at least, because it saves the customer sales tax money. Even at the end of the lease, which is why I don't really worry about mileage.
Here's an article about it:
https://www.galves.com/t-galvesnfSaveHundreds.aspx
Its best not to get hung up on who "owns" the vehicle. For instance, I have a lease title from the Maryland MVA for my GS, even though its a lease. Its simply a method of financing the vehicle, thats all it is.
LOL, its not tax evasion at all, its how sales tax is collected on vehicle sales. You only pay tax on the difference between the purchase price of the vehicle and the trade. This is 100% legitimate, I just did it.
Your analogy would not work, because you would have to pay sales tax on the original $50,000 car, you just wouldn't have to pay it on the new $50,000 car. You pay sales tax on the vehicle's MSRP, not what you pay to lease it in many states. If you live in a state where thats not the case all of this is moot.
The point is that you aren't paying sales tax on vehicle value you've already paid tax on. I paid sales tax on $36,000 when I leased my 2010 ES. When I traded it on my GS, I got $25,000. I did not have to pay sales tax on $25,000 of the $54,000 purchase price of my GS. Saving me $1,500. I already paid tax on that $25,000 when I leased the 2010.
This is NOT the case if you turn the lease in, only if you TRADE it in. My dealer for instance never takes leased cars in, they always trade them in as long as they can offer the customer what their buyout is at least, because it saves the customer sales tax money. Even at the end of the lease, which is why I don't really worry about mileage.
Here's an article about it:
https://www.galves.com/t-galvesnfSaveHundreds.aspx
Its best not to get hung up on who "owns" the vehicle. For instance, I have a lease title from the Maryland MVA for my GS, even though its a lease. Its simply a method of financing the vehicle, thats all it is.
LOL, its not tax evasion at all, its how sales tax is collected on vehicle sales. You only pay tax on the difference between the purchase price of the vehicle and the trade. This is 100% legitimate, I just did it.
Your analogy would not work, because you would have to pay sales tax on the original $50,000 car, you just wouldn't have to pay it on the new $50,000 car. You pay sales tax on the vehicle's MSRP, not what you pay to lease it in many states. If you live in a state where thats not the case all of this is moot.
The point is that you aren't paying sales tax on vehicle value you've already paid tax on. I paid sales tax on $36,000 when I leased my 2010 ES. When I traded it on my GS, I got $25,000. I did not have to pay sales tax on $25,000 of the $54,000 purchase price of my GS. Saving me $1,500. I already paid tax on that $25,000 when I leased the 2010.
I just can't see how you can get that lease residual trade in sale tax savings when you don't own the car.
Trading in a car you don't technically own.The leasing company owns the vehicle.It's just being rented.
I may be missing something here,Steve.
02-12-13, 01:33 PM
#23
The point is that you aren't paying sales tax on vehicle value you've already paid tax on. I paid sales tax on $36,000 when I leased my 2010 ES. When I traded it on my GS, I got $25,000. I did not have to pay sales tax on $25,000 of the $54,000 purchase price of my GS. Saving me $1,500. I already paid tax on that $25,000 when I leased the 2010.
In Jersey,I pay sales tax only on the monthly lease payment and not the whole cost of the GS.
02-12-13, 02:40 PM
#24
Lexus Fanatic
Thats the difference. This only works in states where we have to pay sales tax on the full cost of a leased vehicle. We have to pay sales tax just as if we were buying the car. In NJ you get to pay a monthly use tax, which is much fairer.
You can still trade your leased car just as if you owned it, you just don't get a sales tax credit because you never paid sales tax on the whole vehicle.
All in all, I'd much rather be able to pay a monthly use tax! If I turn my leased car in I paid sales tax on the residual that I will never receive.
You can still trade your leased car just as if you owned it, you just don't get a sales tax credit because you never paid sales tax on the whole vehicle.
All in all, I'd much rather be able to pay a monthly use tax! If I turn my leased car in I paid sales tax on the residual that I will never receive.
02-12-13, 02:45 PM
#25
Thats the difference. This only works in states where we have to pay sales tax on the full cost of a leased vehicle. We have to pay sales tax just as if we were buying the car. In NJ you get to pay a monthly use tax, which is much fairer.
You can still trade your leased car just as if you owned it, you just don't get a sales tax credit because you never paid sales tax on the whole vehicle.
All in all, I'd much rather be able to pay a monthly use tax! If I turn my leased car in I paid sales tax on the residual that I will never receive.
You can still trade your leased car just as if you owned it, you just don't get a sales tax credit because you never paid sales tax on the whole vehicle.
All in all, I'd much rather be able to pay a monthly use tax! If I turn my leased car in I paid sales tax on the residual that I will never receive.
Now it makes sense to me.
Does seem fair to pay tax for the whole car amount.You should pay tax for what you use
02-12-13, 02:48 PM
#26
Lexus Fanatic
For instance, if you get to the end of the lease and you are over mileage, if you can sell or trade the car for your residual, you can get out of it without paying any mileage penalties...your "payoff" on the lease is simply your residual with all of your remaining payments on top of it.
I think the OP may be confused about how NJ taxes, thats why I asked him if he pays full sales tax on the purchase price of the car. That makes sense then, he cannot do what I am proposing either.
I think the OP may be confused about how NJ taxes, thats why I asked him if he pays full sales tax on the purchase price of the car. That makes sense then, he cannot do what I am proposing either.
Last edited by SW17LS; 02-12-13 at 02:53 PM.
02-12-13, 04:24 PM
#27
For instance, if you get to the end of the lease and you are over mileage, if you can sell or trade the car for your residual, you can get out of it without paying any mileage penalties...your "payoff" on the lease is simply your residual with all of your remaining payments on top of it.
I think the OP may be confused about how NJ taxes, thats why I asked him if he pays full sales tax on the purchase price of the car. That makes sense then, he cannot do what I am proposing either.
I think the OP may be confused about how NJ taxes, thats why I asked him if he pays full sales tax on the purchase price of the car. That makes sense then, he cannot do what I am proposing either.
The OP might be from Jersey.He has an Italian name.Many Italians live in Jersey.Especially north Jersey.I'm one.
02-12-13, 04:44 PM
#28
Lexus Fanatic
He said he was from Jersey, but he also said he paid full sales tax. My guess is he doesn't realize that its done differently in other states...
Name should have been a giveaway
Name should have been a giveaway
02-13-13, 07:48 AM
#29
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@SW10ES - You are right, I did get confused about the tax thing. I suppose I am SOL at this point? LOL. However, I appreciate everyones feedback! maybe i should talk to the dealer in MD!
@JOEB427 - Where do you get you cars from in jerz? deal with anyone good?
@JOEB427 - Where do you get you cars from in jerz? deal with anyone good?