If I am purchasing a car and paying off a sellers lease which includes tax, will I have to pay the tax again?

Both the car and myself are in California.

Thanks in advance.

 

I believe tax on the lease is only in respect to the payments. Tax has not been paid on the residual, therefore you will effectively need to pay tax on the purchase price. 10% bummer for you. That would be it were your lease. If you are buying a car and it happens to be on lease, you are not even party to that contract - you are simply entering a new purchase contract, you're going to pay sales tax.

 

Re seller should pay the tax on the lease about $6k which is the tax deferred from the original purchase. Then you'll have to pay another $6k or so for California's "user" tax which is essentially sales tax for private party sales.

 

Thank you very much for all your help. So much to go through to become a member of the P Car family.