Serious resale problem with the Leaf

[thankyouOB]

The sales tax exemption for traded-in vehicles is another subsidy that should go away. All it does is penalize people that need to buy used cars, the 99%. Obama should do something before he gets fired this November.

I know you like to bash this president, but sales tax is not a federal issue.
if it were, then the issue would belong first to the House of Representatives, where all money bills must start. Read your Constitution!

 

[LTLFTcomposite]

The sales tax exemption for traded-in vehicles is another subsidy that should go away. All it does is penalize people that need to buy used cars, the 99%. Obama should do something before he gets fired this November.

In Florida if I buy a $20k car, drive it for a year, then get $13k for it on a trade for a new $25k car I pay tax on the $12k trade difference. How is that not fay-er?

Ah but for the unintended consequences. Maybe if I have to pay sales tax on the whole $25k I keep driving the first car instead, which means fewer jobs at the car dealer, and no good used car for a single mother to buy, making these even more frightening times to be a woman.

 

[Herm]

You guys are spoiling all my fun...

 

[dandrewk]

The sales tax exemption for traded-in vehicles is another subsidy that should go away. All it does is penalize people that need to buy used cars, the 99%. Obama should do something before he gets fired this November.

Easily the lamest and most far-reaching stretch attempt to politicize something that has NOTHING to do with politics. Are you really that desperate?

 

[redLEAF]

You guys are spoiling all my fun...

Well, perhaps you'll like this ... if you lease a car in IL (and perhaps TX I'm not 100% sure), you'll pay sales tax on 100% of the selling price, NOT just the value of the lease; and then if you decide that you want to buy the car after the lease ends, you'll pay sales tax again on the residual (typically lease companies won't budge unless there happens to be a glut of your model that they want to unload and discount the buy back price).

So in the case of the LEAF if you leased in IL, you would pay 100% sales tax on say the $38,500 (not using exact numbers for this example) or $2,695 (7%) as well as lose the $3,850 IL EPA 10% rebate (up to $4K, rebate is for outright purchases only, not leases) --- I believe the fed tax credit may show up as a down payment so the tax may go down to $2,170 (on the $31,000 sales price to be leased) but in actuality, the lease sales tax should be something like $1,347.50 (or 50% of the $38,500 -- residual value); tell me how fair or equitable is that?

 

[Herm]

Thanks for that info redLEAF, looks like leasing is not an option in IL.. How did that get started?

 

[DaveinOlyWA]

You guys are spoiling all my fun...

Well, perhaps you'll like this ... if you lease a car in IL (and perhaps TX I'm not 100% sure), you'll pay sales tax on 100% of the selling price, NOT just the value of the lease; and then if you decide that you want to buy the car after the lease ends, you'll pay sales tax again on the residual (typically lease companies won't budge unless there happens to be a glut of your model that they want to unload and discount the buy back price).

So in the case of the LEAF if you leased in IL, you would pay 100% sales tax on say the $38,500 (not using exact numbers for this example) or $2,695 (7%) as well as lose the $3,850 IL EPA 10% rebate (up to $4K, rebate is for outright purchases only, not leases) --- I believe the fed tax credit may show up as a down payment so the tax may go down to $2,170 (on the $31,000 sales price to be leased) but in actuality, the lease sales tax should be something like $1,347.50 (or 50% of the $38,500 -- residual value); tell me how fair or equitable is that?

glad i dont live there!

 

[LTLFTcomposite]

glad i dont live there!

That's the price they pay to enjoy such wonderful weather.

 

[ztanos]

glad i dont live there!

That's the price they pay to enjoy such wonderful weather.

Illinois has wonderful weather?

 

[DaveinOlyWA]

glad i dont live there!

That's the price they pay to enjoy such wonderful weather.

Illinois has wonderful weather?

yep, supposed to be Sunny (very) and warm (very very)

 

[dandrewk]

The "new" Comiskey Park (AKA U.S. Cellular Field) is a great place to watch baseball. I've never been, yet I pay through the nose for it every time I rent a car at O'Hare. Good grief, those taxes are through the roof! I hope the Sox are appreciative.

 

[redLEAF]

The "new" Comiskey Park (AKA U.S. Cellular Field) is a great place to watch baseball. I've never been, yet I pay through the nose for it every time I rent a car at O'Hare. Good grief, those taxes are through the roof! I hope the Sox are appreciative.

hey somebody needs to pay for those IL government pensions !!! ... Chicago or NYC they are neck and neck with the highest visitor taxes but I've traveled to Boston and L.A. as well and they aren't all that great out there. No questions overall taxes are high in IL, no annual 'value' tax on cars like some states, but they do have some strange twists and turns that can burn you if you're not aware of them -- Wrigley is actually better than the old Comiskey park (a lot like Fenway in Boston) but to each his own.

 

[dandrewk]

Avis quotes $350/week to rent a Prius at ORD. The taxes add another $150! Wow. Somewhere, Bill Veeck must be cackling.

 

[shrink]

The "new" Comiskey Park (AKA U.S. Cellular Field) is a great place to watch baseball. I've never been, yet I pay through the nose for it every time I rent a car at O'Hare. Good grief, those taxes are through the roof! I hope the Sox are appreciative.

+1

...and I am a HUGE White Sox fan! I grew up in Chicago, am a former ChiSox season ticket holder, and went to Games 1 and 2 of the 2005 World Series.

They are in contention for a playoff spot this year - battling Detroit for division title.

and yes, IL and City of Chicago taxes are high.

 

[LTLFTcomposite]

Avis quotes $350/week to rent a Prius at ORD. The taxes add another $150! Wow. Somewhere, Bill Veeck must be cackling.

I've seen that other places as well. Renting a car has been deemed an activity only undertaken by those deserving of exploitation.

 

[coach81]

according to KBB.. leaf projected value in 5 years- around 22%
Frontier projected value in 5 years - 44%

 

[Weatherman]

There may be a considerable variability in resale value, depending on where the LEAF was originally used.

I noticed my first LEAF is now in the possession of Hunter Nissan in Asheville, NC. Certainly a better home for it, considering the climate in Asheville is considerably cooler than Miami. But, is the prospective buyer going to know that the car spent seven months basking in mostly 80s and 90s temperatures (or, if they do know, fully understand what that might mean)?

Given what their asking price is, it may not matter. Let’s just say it’s ridiculously high.

 

[Herm]

according to KBB.. leaf projected value in 5 years- around 22%
Frontier projected value in 5 years - 44%

so $8400 for the Leaf and $8400 for the Frontier?.. both seem too low to me. The $7500 tax credit must be baked-in to that price.

 

[smkettner]

according to KBB.. leaf projected value in 5 years- around 22%
Frontier projected value in 5 years - 44%

Is this adjusted for the rebate?

 

[evnow]

KBB knows exactly as much as we do about Leaf's price in 5 years i.e. zilch.

In any case, I don't want to say I told you so, but, this was one of the reasons I've argued why leasing is less risky compared to buying.