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.

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:

Event disclaimer: *Well-qualified customers who purchase a new, used, or certified pre-owned vehicle, 4 model years or newer with less than 60K miles between December 1, 2023, and January 12, 2024, 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 January 12, 2024. See dealer for complete down payment options and details.

*3.9% APR for 60 months for well-qualified buyers when financed w/GM Financial. Monthly payment is $18.37 for every $1000 you finance. Average down payment is 14.9%. Some customers will not qualify. Take new retail delivery by 01-02-2024. Deferred monthly payments for 90 days. Must finance with GM Financial. Down payment required at signing, if applicable. Offer not available in PA. Some customers may not qualify. Not available with lease and some other offers.**Offer includes $2,750 purchase allowance, $1,250 bonus cash, $2,500 GMC loyalty cash for through GM, and $1,500 engine credit. Offer valid on available 2.7L turbo high output engines. Offer valid for current owners of a 2009 model year or newer Buick or GMC passenger car or truck or a current owner or lessee of a 2018 model year or newer Buick or GMC vehicle through GM financial for at least 30 days prior to new vehicle sale. Must take retail delivery by 1/2/2024.

*Length of contract limited. Some customers may not qualify. Not available with lease and some other offers. Take new retail delivery by 1/2/24. 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 1/2/24.

*Offer includes Up To $4,000 Off MSRP by dealer discount on Buick Enclave, Up To $3,250 off MSRP by dealer discount on Buick Envision models, and up to $3,750 Off MSRP by dealer discount on Buick Encore and Encore GX Models. Offer includes all OEM incentives + dealer discount when applicable. For trade assistance, you must show proof of ownership and trade in a 2009 model year or newer vehicle. Not available with lease and some other offers. Take new retail delivery by 1/2/24. Deferred monthly payments for 120 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 1/2/24. Some features shown may have limited, late or no availability. See dealer for feature availability.

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