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How Are Georgia’s Auto Lease Laws Changing?

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As of January 1, 2018, TAVT on leased vehicles are now 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.

Rick Hendrick Buick GMC strives to keep you aware of anything affecting your ability to buy or lease a new vehicle, making the purchasing process as easy as possible.

Old Lease Law

2018_Cascada

7%

$20,000

Total Value

Taxes = $1,500


New Lease Law

2018_Cascada

7%

$10,764

Lease Value

$20,000

Total Value

Taxes = $753.48

$742.52 In Savings With The New Lease Law!

What does HB 340 mean for you?

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 the 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”).**

Click Here To Review HB 340

*Source: https://www.leaseguide.com/glossary/georgia-car-lease/
**Source: Georgia Department of Revenue
Rick Hendrick Buick GMC is located at: 3244 Commerce Ave Nw • Duluth, GA 30096
Hendrick Vehicle Disclaimer:
$849.00 Dealer Administrative Charge included in advertised price. Advertised prices EXCLUDE options added by the dealer and displayed on the vehicle’s window sticker addendum. Please contact dealer for additional details. All prices exclude all taxes, tag, title, registration fees and government fees. Out of state buyers are responsible for all taxes and government fees and title/registration fees in the state where the vehicle will be registered. All prices include all manufacturer to dealer incentives, which the dealer retains unless otherwise specifically provided. Dealer not responsible for errors and omissions; all offers subject to change without notice; please confirm listings with dealer. All vehicles may not be physically located at this dealership but may be available for delivery through this location. Transportation charges may apply. Please contact the dealership for more specific information. All vehicles are subject to prior sale.

Current Vehicle Disclaimers:


Deferred monthly payments for 90 days. Excludes residents of PA. Must finance with GM Financial. Some customers may not qualify. Down payment required at signing, if applicable. Finance charges accrue from date of financing. Not available with lease and some other offers. Take new retail delivery by 11/30/22. APR and purchase allowance vary by model. Some features shown may have limited, late or no availability. See dealer for feature availability. Tax, tag, title and fees not included. See dealer for further details.

*Discount not compatible with special finance, lease and some other offers. Prices do not include tax, title, license and Dealer Installed Options. Must purchase in stock, new Sierra 1500 by 11/30/2022. Offer may include other GM incentives. See the team at Rick Hendrick Buick/GMC Duluth for details and availability.

*Not all vehicles will qualify for maximum discount. Not compatible with special finance, lease and some other offers. Stock number vary in discount. Prices do not include tax, title, license and Dealer Installed Options. Offer may include other GM incentives. Must purchase in stock, new Terrain by 11/30/2022. See the team at Rick Hendrick Buick/GMC Duluth for details and availability. GMC Sierra: *According to GM for CY 2021 New Car Sales

*Not all vehicles will qualify for maximum discount. Not compatible with special finance, lease and some other offers. Stock number vary in discount. Prices do not include tax, title, license and Dealer Installed Options. Offer may include other GM incentives. Must purchase in stock, new Acadia by 11/30/2022. See the team at Rick Hendrick Buick/GMC Duluth for details and availability.

*Must retail purchase new or pre-owned vehicle between November 9th and November 23rd 2022. Vehicle must be in stock at Rick Hendrick Buick GMC Duluth. Offer cannot be combined with any other incentives or dealer discounts. Pre-order, previous, or transfer purchases do not qualify. Visa gift card provided on location or by mail within 10 business days. Offer cannot be exchanged for discount or cash. One gift card available per sold vehicle. See dealer for details.

*Well-qualified customers who purchase a new, used, or certified preowned vehicle, 5 model years or newer with less than 72K miles between November 15, 2022 and January 2, 2023 and finance through a participating dealer and lender have an option to defer monthly payments for 90 days from contract date. Finance charges begin to accrue on the date you sign the Retail Installment Sale Contract at the Annual Percentage Rate (APR) disclosed in the contract. May not be combined with other lender financing offers. 72 months maximum term limit. Non-commercial transactions only. Equal monthly payments only. Dealer participation required. Not available to Pennsylvania residents, see your dealer for details. Must take retail delivery by January 2, 2023.

*Offer valid on November 25th. 75in TV offer valid for first 5 customers with retail purchase before 10:00am. 65in TV offer valid for first 5 customers with retail purchase before 12:00pm. Must purchase new or used, in stock unit from Rick Hendrick Buick GMC Duluth to qualify. Pre-order, previous, or transfer purchases do not qualify. See dealer for details.

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Rick Hendrick Buick GMC 33.96028, -84.11863.