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I have a question regarding leasing, I have a car already that I would like to trade in on a lease, the car is already been financed and paid for but, i would like to lease an IS-F. Will trading a car on a lease, reduce the tax percentage? or is that only if you trade in on a purchase/finance?
 

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I have a question regarding leasing, I have a car already that I would like to trade in on a lease, the car is already been financed and paid for but, i would like to lease an IS-F. Will trading a car on a lease, reduce the tax percentage? or is that only if you trade in on a purchase/finance?
Depends on what the dealer decides on the trade-in value of the car. They have to make a profit on the car you're trading in so most likely depending on the car you're trading in expect to hear somewhat of a lesser figure than you expected. Go in, see what they say. If it's less than what you expect then better off doing a private sale if possible. And no it will not reduce your interest rate on the lease. This part comes down to how nice your credit looks out there. Good luck with the venture and feel free to ask more questions I am sure others will be glad to guide you in the direction you're looking to go.
 

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I rec. using as little equity in your trade as possible to cover first payment, fees, tax, title, etc.
you want a lower payment, use more cash. additional $1000 usually lowers payment approx. $30/ mo.
 

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If you are looking to pay cash, or finance, many states allow you to pay tax only on the difference between the new car and the trade. When you lease a car, you only pay tax on the monthly payment. So if you trade in a car, you will lower the monthly payment, hence lowering the taxable amount (the payment).

Hope that this helps.:cool:
 

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Which state do you live in? It all depends on the state. In NJ, you will get tax credit as long as you don't ask the dealership to give your trade-in value back to you in cash. In NY, there is no tax credti on leases... Let me know and I will let you know.
 
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