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by Thorrez 1482 days ago
How does sales tax fit in? If you buy the car, you have to pay sales tax on the whole thing right? I don't think that happens on a lease. And when you sell it, that buyer has to pay sales tax too right? And if that buyer is a dealer, then the next real customer has to pay sales tax again right? So sales tax reduces the liquidity and efficiency of selling cars, with no negative effect on leasing. This gets worse and worse the shorter the period of time. skolos owned 6 Teslas in several years, so this would be a big factor.

If you live in a state with no sales tax, then you avoid this problem.

1 comments

different in each state, but in general a lease is a sale for tax purposes. Check with a tax accountant in your state for details if you care.