Leasing a car is different than financing one in many ways. One of the main reasons is when you lease; you are only paying for a portion of the vehicle's life. With this in mind, most states do charge sales tax on every lease payment.

In most states, when you lease, you are not going to pay any sales tax on the actual price of the car. In its place, you will pay tax that will be added to each of your monthly lease payments.

Let's say your new car lease turns out to be $300 per month, and the sales tax on the leased vehicle in your area is 7 percent. That means, your lease payment will be $300 plus $21 in tax, or $321 per month. All this information will be in your contract, so you won't have to worry. You can also use an online car lease calculator to better understand what to expect with your future payments.

Lease Your New Vehicle at Prime Motor Group

The next time you are thinking about leasing a new car, truck, or SUV, we hope you will think of Prime Motor Group. We have helped hundreds of drivers throughout Massachusetts, Maine, New Hampshire, and Vermont with their auto financing solutions for many years. If you have any questions about leasing a new vehicle, please contact us at your convenience. We look forward to hearing from you.

Categories: Finance