Sales Tax (california) increase on lease

Sorry dude, but you'll have to pay the new amount.

 

Car lease fees and taxes can vary by car dealer, finance company or bank, and by the locality in which you live.

You're in California and probably went through Toyota Financial Services.

Call them at 800 874-8822 or go online at Toyota Financial Services for the definitive answer.
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What I learned when I was living in CA, if your taxes can possibly go up, they will.

 

Yep, it depends on the contract which depends on the "lender" which depends on the State regs.

With Toyota (TMCC), California sales/use taxes are calculated on a month-to-month basis. You are paying sales taxes on the monthly payment, not the price of the vehicle. Unlike in some States like Oklahoma & Texas, sales tax is charged on the price of the vehicle - thus locked monthly payments.

 

Ugh.

 

It does not depend on lender.
If the tax rate drops, the overall payment decreases.
If the tax rate increases, the payment increases with it.

 

When does sales tax decrease?

Sometimes but rare event.

 

I have seen it happen plenty. Last few years especially.

 

That does not seem like the trend in Sacramento with a state sales tax increase this past election day passed and a slew of tax bonds for education, roads, etc. Washington the fiscal cliff is talking income tax increases and where the line is drawn is to be determined.

Some trans sales tax have expired only for politicians to quickly put them back on the ballot.

Sales ax in California as ne'er been higher. LA wants to increase also.

 

There is a 1/4 percent increase set for 2013 in California.

 

Lucky for you, the tax increase is only from 0.0875 to 0.0900. Meaning 25 cents a month for every $100 of car payment. I wish you much bigger problems for the new year than a ~ $1 a month increase on your car payment.

 

I'm very intrigued as to why anyone would lease a car for reasons like this...paying full tax on a car you're only going to partially use.

 

You are repeating a common error about leases. Sales tax is paid on the depreciated value of the car (along with dealer profit and transaction fees), not the new car cost.

Disclaimer: In general, I think leases are for the birds, although *EVs may well be an exception.

 

Good to know.