Quote:
Originally Posted by Chriztofor
Another thing to think about when leasing.
"Although most states only charge sales tax on monthly payments (and down payment, if any), some states, such as Texas, New York, and Illinois, require the entire sales tax up front, based either on the sum of all lease payments or on the full sale price of the vehicle, depending on the state."
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Yes, that is true, and in Texas, you get assessed a "property tax" on leased vehicles. Also, at the end of the lease, your "security deposit" will likely get wiped out by charges for any damage, tire replacement (if needed), and other items. If you've had any accident damage, be prepared for "diminished value" charges.
Big thing to remember is the mileage restriction - it will eat up any savings if you go over it and get charged at lease end. If you can write off your lease for business purposes (like if you're a real-estate agent, etc.), then there can be an advantage, especially if you're self-employed or can otherwise lease the vehicle through your company.
I've done it both ways, and prefer purchasing CPO, letting someone else take the hit for depreciation and enjoying a practically new vehicle at a much-reduced price with better warranty (figured into the price, but worth it).