daccs

I am looking to lease a car, can anyone confirm who/how i pay the tax and registration. Should the lease company manage this or do I have to sort it out

Michael

That is part of the upfront money and is in addition to the advertised upfront money.

Pulaski

Which state? Some collect sales tax on the value of the vehicle at the inception of the lease, I believe that some amortize it over the life of the lease.

Bob

Depends on the state.

In MA, you usually sort it out yourself, paying the registration, plate, title fees, inspection fee and town excise tax. Sales tax if you buy, you usually pay to the dealer, or to the DMV when you register the car.

The registration is paid every 2 years, inspection every year as well as town excise tax, even on a lease.

Michael

I believe that is only done if the dealer pays the full amount to the state immediately (states want their money now with no risk of default) and tacks that on to the monthly payment as a loan.

Pulaski

Ah, that makes sense, ...... and presumably states where there it is not customary to add the sales tax to the lease amount as a loan, are states with restrictive usury laws that prevent such an arrangement.