GA TAX LAW CHANGE MAKES LEASING YOUR NEW CADILLAC EVEN BETTER
Due to a change in the tax law, you can lease your new Cadillac including: Escalade, Escalade ESV, XT5, CT6, CTS, CTS-V, ATS, ATS-V, XTS and rather than paying all of the tax due in advance, you will be able to pay the tax divided equally across ALL lease payments.
So, don’t forget to call us to learn more about our 5 star rated dealership and get your new Cadillac, or great used car or truck at our facility in Gainesville Georgia near Athens, Buford, Flowery Branch, Duluth, Johns Creek, Oakwood, Lake Lanier, Lawrenceville, Suwanee, Sugar Hill and North East Atlanta.
HOW GEORGIA’S AUTO LEASE LAW AFFECTS YOUR NEXT LEASE PURCHASE
As of January 1, 2018, TAVT on leased vehicles will be calculated based on the total of lease payments, rather than the full value of the vehicle.
If you are considering a lease option on your next car, it is important to understand how you benefit from the new Georgia auto lease tax implemented in 2018. Previously, the tax was paid upfront (or rolled into financing) at the rate of 7.0% of the fair market value of the vehicle, as determined by the Georgia Department of Revenue, or the vehicle selling price (whichever was greater).*
The revised law provides that you pay taxes on the sum of your lease payments, rather than on the total value of your car, and it is payable either up-front or during the course of your lease payments. This one-time tax covers the sales tax on down payments, the sales tax on monthly lease payments, as well as the annual ad valorem property tax that was a product of the previous tax laws. Overall, this means greater savings when leasing your next car.
Cadillac of Lake Lanier strives to keep you aware of anything affecting your ability to buy or lease a new vehicle, making the buying process as easy as possible. Visit Cadillac of Lake Lanier in Gainesville GA for more information from our finance experts.
Previously if you bought or leased a $20,000 car, you will be assessed $1,400 in TAVT. The TAVT is calculated based on the price of the vehicle, due at signing. The new rules would mean that on a $299/month base lease payment, you would be assessed based on the sum of the lease payments, or 10,764. You have the option to pay this amount, which is 753.48 (instead of $1,400) at signing OR throughout these term of the lease. This means that your amount due at signing could be thousands of dollars less than before the law. Also, on a $20,000 vehicle, the new law means 746.52 in savings.
WHAT IS TAVT?
TAVT stands for Title Ad Valorem TAX. Motor vehicles purchased on or after March 1, 2013 and titled in this state are exempt from sales and use tax and annual ad valorem tax, also known as the "birthday tax". These taxes are replaced by a one-time tax that is imposed on the fair market value of the vehicle called the title ad valorem tax fee ("TAVT").**