zalmanking

I currently have Acura TSX 2008 which has a buyout of $18,992.49 plus GST at 5% of $949.62.

I am turning this vehicle in and going for Acura TL 2012 Tech - Elite but the dealer has not mentioned anything about tax savings which should impact my monthly payments. I heard about this, but am not sure how it plays into the monthly payment. Can any one from Canada or US please help me.

During the course of car shopping I happen to visit BMW dealership, and they told me that my monthly payment would be less by $25/month if I trade my vehicle in, although there was negative equity of $1800 as opposed to no trade, he explained briefly but I wasnt too keen as monthly payment was in excess of $800, so I did not pay much attention.

Now Acura dealership has not explained the same benefit that I should be getting if I am trading it (my TSX) in, as same financial rules apply across Alberta.

Any help would be appreciated as I am waiting for the TL to be delivered to the dealership.......thanks in advance

sebounet2005

Sorry, but may be it's my english. But when you say that you turning the vehicle in. Did you mean you give it back to acura at the end of the lease ?In this case you won't be able to have taxes back.

If you are selling your car to acura, it's a different story.

If you want to buy your TSX at the end of the lease. You will need to pay 18992 + taxes (lucky you only 5% in alberta)

So if you put your car in the transaction to lease a TL. They are going to credit you the taxes you just paid. If you sell the car at the same price.

So on a 48 month lease, roughly it will decrease your monthly amount by (949.62/48 months) =17.11. But it's just an idea, it will give you more , because it is apply like a cash down and you will save on interest et...

Go ton acura.ca. http://www.acura.ca/lease-and-financ...ent-calculator

Choose your car , in down payment , put your taxes amount and you are done.


To sum up it's just a figure trick. It's the exactly the same amount of money it will cost you , wether you give the car back to acura or you sell it to them. The 949 will be spread on the 48 months plus interest. Or you are going to pay it when you buy the car at the TSX end of the lease.

The goal and the law is that they cant double taxes you.

When you lease a car, the taxes only apply for the total amount of lease. When you buy it , it's on the total value of the car.


Sorry again for my english, i hope it's clear.

Litt

On a lease you only pay GST on the lease payments as you go.

If you are self employed and use your vehicle for business use you can potentially write off a large amount of the payment as a tax expense. i recommend you keep a mileage log book.

The rules are different if you are buying the car. You can write off the deprection over the years you own the car.

I don't know any other tax savings.

sebounet2005

I think the OP is talking about sales tax.

If you have a car you have bought. Let say a 20 000$ tax inc and the dealer buy this car from you 20 000 Tax inc. if the tax in the 20 000$ is 1000$ for example, the dealer will reduce the price for the new car for 1000$.

It's just a sales taxe transfer that the dealer can do. It doesn't cost anything to the dealer

zalmanking

Got it....now I understand how tax thing is being calculated. Thanks folks for all your help in making me understand.