Quote:
Originally Posted by matt_335Ci
plugged your numbers in my calculator. (ignore cell C7, i didn't update the text)
|
matt_335Ci
That is not valid in Texas. You don't pay tax on the payments, instead you pay tax on the selling price of the car. You can either pay that up front, or roll it into the lease (add to selling price).
OP,
If you trade, it's like a cap cost reduction. Your selling price is reduced by the trade amount, which reduces your taxes. So, you save 6.25% of your trade-in value. Plus, the trade lowers your cap cost and frther reduces your payments.
However, many folks argue not to put any cap cost reduction on a lease because you could lose some or all of the cap cost money you put in if there is a total loss on the car (wreck). If you are a repeat leaser, it's not a big deal, but when you are leasing for the first time and have a trade, you have to decide what to do.