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However, on a leased vehicle, sales tax is only due on the amount of the monthly payment so let's say you lease a vehicle with a $20,000 residual value, you save about $1600 in sales tax. If you decided to buy the car out, you would pay the 1600 at that time.
That's how it works in PA as well. When I sold my old lease, I had to buy the car first before I could sell it private party. I had to pay taxes when I bought it from the leasing company. Then the buyer had to pay taxes when he bought it from me. Crazy, huh?
Speaking of taxes. When I've traded cars in before, it helped limit the amount of taxes I was paying on the new car purchase. This time however, I traded in my old car and my new IS is a lease so my trade didn't go towards any of the taxes rolled into the lease. Doesn't seem fair.
10-08-14, 12:40 PM
