SolidGranite

Hello,

Hopefully someone can help me out here...

I live in IL and when I leased my C55 I paid the tax up front of about 3k. However, when I leased the car I was in a suburb of Chicago and then moved into the city of Chicago a few months later. After changing my address my monthly payment went up $55 per month and I had about 35/36 payments left!

So basically, I'm paying tax twice on this leased vehicle. Does this make sense? I've called MB twice about it and they insist this is correct. I've looked up tax rates etc on the IL web site and cannot find anything about my situation.

Can anyone provide some insight to my situation?

Much appreciated,

Perry

whoover

In states like Illinois, where sales tax is due on the entire capitalized cost of the car, it is often rolled into the lease finanaced total. That would explain why it went up when your address changed. The amount you paid up-front is the mystery. Are you sure it's not registration? You would also have paid sales tax upfront on any non-financed portion of the cost -- in other words, if you made a large down payment you would have paid sales tax on that portion only. But $3,000 sounds like a lot of sales tax on a down. It also sounds like a small amount on the entire cost. Maybe it was the tax on the suburban rate and the $55 does represent the increment owned on the entire car due to the Chicago rate. Play with the rates and cost of the car to see if any of these scenarios work out.

SolidGranite

I have to look at my contract. When I was on the phone w/ MB he said my monthly payment "before" going up included the 3k in sales tax on the car. Then after moving into Chicago, tax was due for the city, hence why it went up. But...55/month is like 2 grand..?

SolidGranite

I forget.. is cap cost what I paid for the car or what MSRP was?

Actually, I remember now, it is what I paid for it.

The MSRP was 59xxx and I paid 52xxx for it. I had a 31k trade and the MB guy on the phone said I ended up paying 1600 something in tax when I orginally leased the car. In that suburb, vehicle sales tax is 6.5%. After doing the math all of that is correct as it comes out to 3300 or so.

What I'm still confused about though is why do I owe another 2k in taxes after moving to Chicago? That is a huge difference.

ima55r2

The 6.25% state sales tax and the general sales tax of 9.0% in Chicago and adjacent suburbs might explain your situation.

SolidGranite

I read on the IL web site chicago vehicle tax is 7.00%.

Believe it or not, when I talked to the tax guy at MB he said their records were showing a Chicago vehicle tax rate of 6.00% and my payment might go up more!

I-Doc

Yup,

I'm on my second MB lease in the city of Chicago. I moved here from virginia. Chicago has a extra lease tax that is placed if you live in Chicago, in addition to the change of sales tax. All I can tell you is that I pay alot of surcharge taxes (~$6G, I think). I stopped asking questions, but the leasing guy at Fletcher Jones knows his stuff. I can give you his name/number if you want. Good luck, and Mayor Daley thanks you for your support !

ldangeli

Two sites to help you out.

http://www.carinfo.com/capcost.html

http://www.leaseguide.com/lease02.htm

You shouldn't owe any other tax. The dealer collects and distributes the tax to the state you reside in at the time of purchase. You may pay a registration tax when re-registering your vehicle to your new address. But that is not a vehicle sales tax.

mjr24

Yes, IL is one of the few states that really sucks to lease in.