Lease Now Or Wait Until End of Q1?

[CMK]

Now I am confused too. lol I already paid $1218.90 in tax at time of lease and now they are charging me $4769.66 additional. I think they make this stuff confusing for their amusement.

The reason I did the lease is bc I dont qualify for the $7500 on purchase

I’m not sure about NJ, but in Texas you have to pay tax (6.25%) on the full purchase price of the vehicle for a lease. If you buyout the vehicle during or at the end of the lease you have to pay tax again on whatever the residual value is.

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[kpanda17]

Here is the complete breakdown. The Payoff of $77,767.31 includes $4,769.66 NJ sales tax.

I am about to call Navy Federal for an auto refinance loan, 4.79%. I just don’t know exactly what to do. Do I do the lease buy not now (payments will be roughly $1245/month x 72 months = ~$89,640), or just continue with the lease and turn in at the end ( roughly $36,000 plus turn in fee) then get another one in 3 years…….

and to clarify I did the 0 down lease, only had the $7500 lease incentive basically as the down payment. I had to pay $4251.52 at pickup. You can see all the fees etc below.

Lease buyout number from Chase, includes $4,769.66 in NJ sales tax

thanks for sharing

 

[netcatz99]

Now I am confused too. lol I already paid $1218.90 in tax at time of lease and now they are charging me $4769.66 additional. I think they make this stuff confusing for their amusement.

The reason I did the lease is bc I dont qualify for the $7500 on purchase

NJ EV Sales tax is currently at 3.3125% till 6/30/2025. $4.7k addt'l sales tax... that looks like you're being charged the full 6.625%. I'd suggest calling the lender to confirm what tax rate you were charged with, assume this is expected (double taxation).

Page 5 of this document explains how Auto Leases are taxed in NJ.

 

[JerseyMike]

NJ EV Sales tax is currently at 3.3125% till 6/30/2025. $4.7k addt'l sales tax... that looks like you're being charged the full 6.625%. I'd suggest calling the lender to confirm what tax rate you were charged with, assume this is expected (double taxation).

Page 5 of this document explains how Auto Leases are taxed in NJ.

now i'm wondering if i was overcharged.


I traded in a lightning for about $35k and leased, they stilled charged $12xx in sales tax but said that was after counting in the trade in so only the remaining amount (not sure if tax on total or just the depreciation)

I wonder if I was supposed to have that waived.

 

[JerseyMike]

Now I am confused too. lol I already paid $1218.90 in tax at time of lease and now they are charging me $4769.66 additional. I think they make this stuff confusing for their amusement.

The reason I did the lease is bc I dont qualify for the $7500 on purchase

did you have a trade-in?

i paid about the same in sales tax and they said that they applied my trade to reduce the sales tax (but I'm not sure that I believe it)


I'm also in NJ...trade in was around $35,000

 

[netcatz99]

now i'm wondering if i was overcharged.


I traded in a lightning for about $35k and leased, they stilled charged $12xx in sales tax but said that was after counting in the trade in so only the remaining amount (not sure if tax on total or just the depreciation)

I wonder if I was supposed to have that waived.

Tax would have applied to the net amount (after deducting the trade in amount). Reading this, owner had to pay the full sales tax amount on their Model X. Their situation is a bit different, however it appears a form (A-3730) can be submitted to NJ Division of Taxation to get some type of refund as EVs in NJ are supposed to be taxed at 3.3125% till 6/30/2025.

@CyberDysan , would you be able to check w/ your lease holder to confirm what sales tax % you were charged w/? It definitely sounds like you were charged 6.625% instead of 3.3125%. Your sales tax amount should have been half for the lease buyout.

 

[JerseyMike]

Tax would have applied to the net amount (after deducting the trade in amount). Reading this, owner had to pay the full sales tax amount on their Model X. Their situation is a bit different, however it appears a form (A-3730) can be submitted to NJ Division of Taxation to get some type of refund as EVs in NJ are supposed to be taxed at 3.3125% till 6/30/2025.

thanks, when you say "net amount" is that the full price of the cybertruck - trade-in or is that a reduced amount based on the (total - residual) - trade-in
or something els?

 

[netcatz99]

thanks, when you say "net amount" is that the full price of the cybertruck - trade-in or is that a reduced amount based on the (total - residual) - trade-in
or something els?

It's the latter, Page 10 - Section 29 explains the Sales Tax benefit for trade-ins - link. This applies if you own or finance your trade in.

 

[cyberguy123]

i finaced my ct at 6% with 2k down, its a good deal but. i pay 500 a month for insurance

 

[Gigahorse]

i finaced my ct at 6% with 2k down, its a good deal but. i pay 500 a month for insurance

$500 a month for insurance????
That seems crazy high, are you 17 with 9 accidents and a DUI?

 

[cyberguy123]

$500 a month for insurance????
That seems crazy high, are you 17 with 9 accidents and a DUI?

no, i live in NY

 

[JerseyMike]

no, i live in NY

that stinks,
insurance on mine was only about $130/year more than the lightning....around $1300-$1400 per year

 

[cyberguy123]

that stinks,
insurance on mine was only about $130/year more than the lightning....around $1300-$1400 per year

yep!

 

[BlueLightning]

Have no clue, can’t lease in my state so stuck with new or used.

Know these used car dealers need to let the price bubble pop!

 

[kpanda17]

no, i live in NY

im in NY
shop around, my quote is $250

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