There are numerous benefits to leasing a vehicle that may make the method more desirable compared to a loan. Due to a lease's shorter-term commitment, it's a great option for Quincy and Norwell drivers who prefer to enjoy the latest features and tech more often. Furthermore, leased vehicles are always under warranty, and lessees aren't responsible for depreciation. But perhaps the most compelling attribute of a lease is the lower expense (smaller monthly payments and lower tax) over the same time period compared to a loan. But how is sales tax calculated with a lease?

Do Auto Lease Payments Include Sales Tax?

With a lease, since you are essentially renting the vehicle and not paying for the vehicle itself, most states charge sales tax on the monthly payments instead of the total cost. Incorporating the tax into the lease payments reduces the total upfront cost. In Massachusetts, the Motor Vehicle Sales and Use Tax is 6.25 percent. So, for example, if the lease comes out at $300 per month, the actual payment will be $300 plus $18.75 in sales tax, bringing the total to $371.88. Lease payment and sales tax amounts are always disclosed upfront, so you'll know exactly how much you'll be paying each month before you sign the lease contract.

Test-drive a new Ford near Hingham and Pembroke, MA

If you have any questions about leasing or financing a new MINI or would like more information about our new vehicle specials, please reach out to South Shore MINI at your convenience. We're always happy to help.

Categories: Finance, New Inventory