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:
$949.00 Dealer Administrative Charge included in advertised price.

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.

Additional Disclaimers:

*Length of contract limited. Some customers may not qualify. Not available with lease and some other offers. Take new retail delivery by 6/30/25. **Offer includes all available discount, incentives, and available savings. Offer varies by stock number. For trade assistance, you must show proof of ownership and trade in a 2011 model year or newer vehicle. Not available with lease and some other offers. Take new retail delivery by 6/30/2025.

*Length of contract limited. Some customers may not qualify. Not available with lease and some other offers. Take new retail delivery by 6/30/25. **Offer includes all available discount, incentives, and available savings. Offer varies by stock number. For trade assistance, you must show proof of ownership and trade in a 2011 model year or newer vehicle. Not available with lease and some other offers. Take new retail delivery by 6/30/2025. ***Well-qualified customers who purchase a new, used, or certified pre-owned vehicle, 4 model years or newer with less than 60K miles between June 1 2025 and July 31, 2025, and finance through a participating dealer and lender have the 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 preferred lender financing offers. 72 months maximum term limit. Equal monthly payments only. Not available to Pennsylvania residents; see your dealer for details. Must take retail delivery by July 31, 2025. See dealer for complete down payment and interest rate options and details.

*For Current Lessees of a 2020 model year or newer GM or Non-GM passenger car or truck at least 30 days prior to the lease of a new GM vehicle through GM Financial. Customer remains responsible for current lease payments. Each dealer sets own price. $279/month for 36 months. Your payments may vary. Payments are for a 2025 GMC Terrain FWD Elevation with an MSRP of $31,395. Based on due at signing amount of $4,269 (after all offers). 36 monthly payments total $10,044. Must show proof of lease. Option to purchase at lease end for an amount to be determined at lease signing. Lessor must approve lease. Lessee pays for maintenance, repair, excess wear and disposition fee of $495 or less at end of lease. No security deposit required. Payments may be higher in some states. Not available with other offers. Take new retail delivery by 6/30/2025 **Offer includes all available discount, incentives, and available savings. Offer varies by stock number. For trade assistance, you must show proof of ownership and trade in a 2011 model year or newer vehicle. Not available with lease and some other offers. Take new retail delivery by 6/30/2025. ***Well-qualified customers who purchase a new, used, or certified pre-owned vehicle, 4 model years or newer with less than 60K miles between June 1 2025 and July 31, 2025, and finance through a participating dealer and lender have the 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 preferred lender financing offers. 72 months maximum term limit. Equal monthly payments only. Not available to Pennsylvania residents; see your dealer for details. Must take retail delivery by July 31, 2025. See dealer for complete down payment and interest rate options and details.

*2024 GMC Sierra EV Denali Limited availability at GMC EV dealers. Monthly payment is $15.15 for every $1,000 you finance. Average example down payment is 8.7%. Some customers may not qualify. Not available with lease and some other offers. Take new retail delivery by 6/30/25. **Offer includes all available discount, incentives, and available savings. Offer varies by stock number. For trade assistance, Not available with lease and some other offers. Take new retail delivery by 6/30/2025. ***Well-qualified customers who purchase a new, used, or certified pre-owned vehicle, 4 model years or newer with less than 60K miles between June 1 2025 and July 31, 2025, and finance through a participating dealer and lender have the 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 preferred lender financing offers. 72 months maximum term limit. Equal monthly payments only. Not available to Pennsylvania residents; see your dealer for details. Must take retail delivery by July 31, 2025. See dealer for complete down payment and interest rate options and details.

*2024 GMC Sierra EV Denali Limited availability at GMC EV dealers. Monthly payment is $15.15 for every $1,000 you finance. Average example down payment is 8.7%. Some customers may not qualify. Not available with lease and some other offers. Take new retail delivery by 6/30/25. **Offer includes all available discount, incentives, and available savings. Offer varies by stock number. For trade assistance, Not available with lease and some other offers. Take new retail delivery by 6/30/2025. ***Well-qualified customers who purchase a new, used, or certified pre-owned vehicle, 4 model years or newer with less than 60K miles between June 1 2025 and July 31, 2025, and finance through a participating dealer and lender have the 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 preferred lender financing offers. 72 months maximum term limit. Equal monthly payments only. Not available to Pennsylvania residents; see your dealer for details. Must take retail delivery by July 31, 2025. See dealer for complete down payment and interest rate options and details.

Please see dealer for details.

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Rick Hendrick Buick GMC 33.96028, -84.11863.