How is sales tax applied to a lease?—Prime Mazda Norwood, serving Westwood and Dedham, MA

When it comes to paying for your next Mazda, leasing is a great option for drivers who like driving a new vehicle every few years and enjoying the latest automotive tech and amenities more often. Additionally, leases are always covered by a new vehicle warranty, and the guaranteed future value means you don't have to worry about depreciation. Another benefit Braintree drivers may find attractive about leasing is that it generally costs less than financing over the same period, thanks to lower monthly payments and less sales tax. But why is lease sales tax less than financing?

Do Mazda lease payments include sales tax?

When leasing a vehicle, you are only paying for its use, not to be the titleholder. So, most states levy sales tax on the monthly payments and not the vehicle's total cost, making it easier for a lessee to get behind the wheel by reducing the total upfront cost. In Massachusetts, the Motor Vehicle Sales and Use Tax is 6.25%. So, for example, if you were to lease a 2021 Mazda CX-9 Sport for $259.00 per month*, the actual monthly payment would be $259.00, plus $16.19 in sales tax. Over the course of a three-year lease, you would pay $582.84 in tax. For comparison, if you were to buy the SUV for $34,596, then sales tax would be $2,162.25.

All lease details like monthly payments, sales tax, and APR are always disclosed in advance, so you'll know your exact monthly payment before signing the lease agreement.

Lease a new Mazda near Braintree, MA

Reach out to Prime Mazda Norwood for more information about Mazda leases and the latest special offers. And if you'd like to try out a new Mazda for yourself, we welcome you to visit us for a test drive. We'll be happy to show you around.

*36-month lease with 10,000 miles per year. $3,673 down payment. All lease prices exclude sales tax, title, and $495 documentation fee. $650 acquisition fee included.
Source: blog