In NJ.....I owe 21000 including TAX on my 03. When I trade in my 03 for an 06, don't I get a tax credit toward the lease?? So whatever number they come back with for the 06 that should not include the TAX, right?? Am I right in my thought process??? I need to know for sure. I know the Tax credit is there but not sure how it is applied to a lease when you trade a vehicle in. Basically when the dealer pays the 21000 they are paying off the car plus the tax. When you lease you are only borrowing $$ for the lease term which will be nowhere near the 21000, thus a tax credit and not added into the payment of the '06. RIGHT????????????????

 

Well if im not mistaken when you call to get your payoff you can get 2 numbers your payoff and the dealerships payoff and theres is tax free.

 

not so sure that is a correct statement.....my credit union just confirmed that the buyout number they give me is the amount owed on the car and the dealer would be responsible for that amount if I traded it in.

 

What tax are you referring to - a sales tax? If so, each transaction is taxed. The sales tax applicable to the purchase of your '03 was applied in that transaction and paid to the state. Since you financed that purchase, any tax paid when purchased is included in the amount now owed.

The purchase or lease of an '06 will then be fully taxed and an amount paid to the state. That tax will be on the full value of the car (or the lease, depending on NJ law), not the difference in value between the '03 and '06. So, I don't know what tax credit you mean. There is no tax credit.