There are several benefits to a car lease that can make it a more desirable option than financing for some drivers. For example, since lease terms are fixed, you're not tied to a long-term commitment. This makes it a great choice for Westborough drivers who like to enjoy the latest features and tech more often. Additionally, leased vehicles are always under warranty, and contract terms protect the lessee from depreciation. But perhaps the most popular attribute of leasing is the reduced expense in the form of smaller monthly payments and lower tax. But how is sales tax calculated with a lease?

Do Auto Lease Payments Include Sales Tax?

With a lease, since you are paying for the vehicle's use and not 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 $350 per month, the actual payment will be $350 plus $21.88 in sales tax, bringing the total to $371.88. The lease payment and sales tax amounts are disclosed upfront, and you'll know exactly how much you'll pay each month before you sign the lease contract.

Test-drive a new Ford near Charlton and Holden, MA

If you have any questions about leasing or financing a new Ford or would like more information about our new vehicle specials, please feel free to contact Prime Ford Auburn at your convenience. We're always happy to be of assistance.

Categories: Finance, New Inventory