Lease buyout out of State

[scharn]

Hey guys,

I was presented with an option to get a car I want out of state... that state is Texas, which unfortunately seems to be a rough state when it comes to leases and buyouts.

Do any of you know if it makes sense to lease a car in Texas, bring it back to California and buy it out here? From what i've been reading in Texas you have to pay the full amount in taxes on the lease, and if I bring it to California and buy it out, i'm sure they'd want taxes on that transaction as well.

 

[JVsGT]

Hey guys,

I was presented with an option to get a car I want out of state... that state is Texas, which unfortunately seems to be a rough state when it comes to leases and buyouts.

Do any of you know if it makes sense to lease a car in Texas, bring it back to California and buy it out here? From what i've been reading in Texas you have to pay the full amount in taxes on the lease, and if I bring it to California and buy it out, i'm sure they'd want taxes on that transaction as well.

My opinion... don't lease a vehicle in Texas! They tax you for the full purchase price up front. The only thing that saved me was a huge trade-in tax savings. Purchase price on my GT2 was $42,040. My trade was $31k. So I only paid $690 in sales tax. Upon buyout, you will have to pay tax on the buyout amount no matter where you live.

 

[scharn]

My opinion... don't lease a vehicle in Texas! They tax you for the full purchase price up front. The only thing that saved me was a huge trade-in tax savings. Purchase price on my GT2 was $42,040. My trade was $31k. So I only paid $690 in sales tax. Upon buyout, you will have to pay tax on the buyout amount no matter where you live.

Yeah I figured Texas tax made is kind of a no win situation.