How is tax calculated on a lease?
#1
Instructor
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How is tax calculated on a lease?
After a really crappy dealership experience yesterday, which I walked away from TL-less, I am looking at the lease summary the salesperson provided and can't really make any sense of it all.
First of all, the cap cost on paper was 600 bucks higher than what was verbally agreed upon.
Secondly, and I may be completely wrong here, the amount quoted for tax was nearly double what it should have been. How is tax calculated on a lease? As far as I know the only portion that should be taxed is the cap cost + fees - residual (approximately $15k - 16k on a TL). Is this not correct? If my sales tax is 5% then I should have been charged less than $800. The summary shows nearly $1400!
Is it just me or was this guy trying to sneak alitte extra profit in for himself?
I'm glad I walked.
First of all, the cap cost on paper was 600 bucks higher than what was verbally agreed upon.
Secondly, and I may be completely wrong here, the amount quoted for tax was nearly double what it should have been. How is tax calculated on a lease? As far as I know the only portion that should be taxed is the cap cost + fees - residual (approximately $15k - 16k on a TL). Is this not correct? If my sales tax is 5% then I should have been charged less than $800. The summary shows nearly $1400!
Is it just me or was this guy trying to sneak alitte extra profit in for himself?
I'm glad I walked.
#4
Originally Posted by vector7777
First of all, the cap cost on paper was 600 bucks higher than what was verbally agreed upon.
Originally Posted by vector7777
Secondly, and I may be completely wrong here, the amount quoted for tax was nearly double what it should have been. How is tax calculated on a lease? As far as I know the only portion that should be taxed is the cap cost + fees - residual (approximately $15k - 16k on a TL). Is this not correct? If my sales tax is 5% then I should have been charged less than $800. The summary shows nearly $1400!
#5
#6
Three Wheelin'
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In Florida, you pay sales tax on the payment. This is why when you trade in or sell a leased car early, a dealer would pay the payoff but a private party would pay the payoff plus tax on the payoff. It's when you finance the car that you've financed the tax, too, unless you put at least that much down.
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