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Extra Payment Due

Discussion in 'Dealers & Pricing' started by DSMM6, Jan 22, 2015.

  1. DSMM6

    DSMM6 Junior Member

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    So I see that I have a $691 bill from Toyota to pay. Seems that Toyota paid my Virginia state personal property tax and is now sending the bill to me. This is the first time I have leased a car. Is this normal? I told the guy that I wanted to check my contract to see if stated somewhere that I have to pay taxes on a car that I am leasing, not paying on to own. He said he had it right here on his screen and then told me to hold on, let me speak to a manager. He came back and said that he couldn't find anything in the lease contract and told me that Toyota pays things like personal property taxes, tickets/fines, to keep their cars from getting impounded by the state. I told him that should be the leasers problem. I told him I wanted to talk to my County Clerk's office and DMV before I paid anything to them. Is it standard or just understood that a person pays personal property tax on a car they don't own? Doesn't seem right to me if it's not stated in the lease contract and the company employee couldn't find any verbiage saying that I'm liable for it. Thanks for reading.
     
    #1 DSMM6, Jan 22, 2015
  2. fuzzy1

    fuzzy1 Senior Member

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    #2 fuzzy1, Jan 22, 2015
    DSMM6 likes this.
  3. Blizzard_Persona

    Blizzard_Persona Senior Member

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    In PA you pay the tax on each monthly payment only, not up front.

    But if you decide to buy the car at the end of the lease then you have to pay the tax on the new sale price.

    Basically you only pay tax on the depreciation aka your lease payments.
     
    #3 Blizzard_Persona, Jan 22, 2015
  4. wjtracy

    wjtracy Senior Member

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    Gee good question about VA prop tax when leasing. I have never leased, so I don't know. Normally when you purchase you get a annual car tax bill in the mail. Car tax is a local town tax, so the amount you pay relates to what town you "garage" the car. Of course, leasing is not a way to get out of it...in fact we charge the tax to any car "garaged" in VA. There is also a normal state sales tax (about 4%).

    If your rich relative with aTesla stayed for a week, he'd could owe your town $100. Though we'd probably let him off the hook.

    Parenthetically, the local car tax in VA can easily get to 20-25% of car value over 10-12 years, not counting the 4% state tax. So that's why the town will not let you escape it...its a huge tax especially in NoVA. Due to public outrage over it, since about 2001 the state now pays the town about half the tax bill for you, in the form of "car tax relief".
     
    #4 wjtracy, Jan 22, 2015
    Last edited: Jan 22, 2015
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