[Rick Parker]

The only tax collected at lease inception is the equivalent of sales tax on the 1st monthly payment based upon the garaging county for the vehicle,and is adjusted if you relocate. The same tax rate is also applied to what is termed "capitalized cost reduction" if any is applicable (lease terminology for "downpayment"). Then as you progress through the lease the same sales tax is collected on each subsequent payment. If you ultimately purchase the car at lease end (be ABSOLUTELY SURE this option is in the language of the lease contract, and you fullu understand ANY additional fees due at lease end) you will be charged the entire amount of sales tax on the agreed upon value at the end of term. The same rates and conditions will apply. At that time the vehicle ownership transfers from the lease company to you. Until then it belongs to the lease company and you are in efffect renting it. You will also need to consider Insucance costs as they many times are higher because the lender will require higher liability limits to protect their interests. You will not have to initially pay any large lump sum of tax other than what I have described. Overall the lease in dollars and cents will cost you more than if you purchased it, but often times the monthly payment is all that anyone considers. Most lenders no longer require a security deposit either. Just 1st month payment, DMV fees, and cap reduction along with applicable tax on cap redution.

Good luck....