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Post subject: Taxes due at purchase Posted: Fri May 29, 2009 12:10 pm |
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Joined: Fri May 29, 2009 12:33 pm Posts: 2
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This is my first experience with leasing. My lease was up earlier this year and I did an outright purchase of the vehicle. I have the title assigned to me from Honda leasing and wanted to get a new title in my name. Maybe I am stupid, but I had not idea that I would owe over 1,000 in taxes that have to be paid before I can change this title. I live in PA. Is this normal? Have no sales taxes been paid on this vehicle as yet. The lady at the messanger service, calculated 6% on the total sales price to come up with what we owe. Is this correct? I was really shocked, thougth I was doing the right thing when I leased now I feel like I am paying for this car for years and years.
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Post subject: Re: Taxes due at purchase Posted: Sat May 30, 2009 2:37 pm |
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Joined: Thu May 24, 2001 8:00 pm Posts: 3478 Location: Cincinnati, OH
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Yes, if you purchase the vehicle at lease end you will be responsible for any sales tax.
Leasing affords you the option of buying it at the end of the term if you like the car and want to keep driving it.
In PA you paid tax on the monthly payment and this would have been for the portion of the vehicle you used. When you buy it for the residual value you now pay sales tax on the rest of it.
_________________ -Tarry Shebesta, OCLC Certified Lease Consultant Forum Moderator Compare Instant Lease Payments at www.LeaseCompare.com
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