Thursday, February 9, 2012

Can a lease veh. payment legeally go up, if the state sales rose from 6 to 7% ?

We signed a binding contract with Ford Motor. back in November. Indiana sales tax just rose from 6 to 7%. Increasing our monthly lease payments by $ 6.00. how in the world can our state get away with increasing taxes on a signed, binding contract ?
Can a lease veh. payment legeally go up, if the state sales rose from 6 to 7% ?
The contract does not bind the state since they are not a party to it. If you read your contract it will state that your payment is $x + tax. It may even mention that the tax rate may change though it doesn't really need to do so. You are contractually liable for whatever your lease payment is PLUS any taxes at whatever the prevailing rate is when the payment is made. Taxes can go up or down and your payment will change as a result.
Reply:You're welcome. TFTP. Report It
Reply:A lease is like making a new purchase every month.



One state that I know of (North Carolina) grandfathers tax rates to the time that the contract was signed but most do not.

If the rate ever goes down, your payment will drop.
Reply:If taxes are included in your lease payment, then it would have to go up so the dealer doesn't get in trouble for tax evasion.



I've only owned vehicles though so I don't know how leases work.

No comments:

Post a Comment