I am leasing a 2009 ES350 through Lexus Financial. I have access to my online and I can see a payoff amount. Thinking of buying the car out of the lease perhaps.

Does the payoff amount listed include Sales Tax for Ohio? Or would I end up paying sales tax once the title transfers from Lexus to my name?

Called Lexus and they told me the amount includes the tax but I'm thinking they gave me incorrect information.

Please let me know.

Thanks.

 

I would check with a dealer in OH. In NC, sales tax, doc fee and state inspection fee have to be added.

 

This varies by state. Call another dealer and ask them.

 

If the lease payoff is just the sum of your remaining lease payments then I believe it would include the sales tax but if it is some other amount you would owe the sales tax in addition. Either way you will end up paying all of the sales tax even the sales tax on the interest part of your lease payment. Always kind of irritates me but that's the way auto leases are handled. Now if the dealer were to payoff the lease they would not pay the sales tax but I assume the person you were talking to knew you were the owner. And the dealer can't transfer the car to you without sales tax and often a lot more fees.

Dave Mac

 

First, you can confirm all your questionsa with the 800 phone on the web site.

The listed price for buyout on the web site should be just the residual value of the car. You would have to add on tax, license and any other fees.

Also, depending on the term of your lease you may be past the point where you're upside down. Most leases are front loaded and soemwhere around yrs 2-3 on a lease you will be paying more principle than interest. So it ,may be more advantsageous to keep the lease.

Finally, Lexus will also usually let you out of the lease 3-6 months early to put you in a new car.