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Originally Posted by Em-Two
The residual only determines if you walk away with owing nothing or end up with equity at the end of the lease term.
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Not true for every state. My state wants to discourage lease buyouts by double taxing.
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When you lease a vehicle the lessor "buys" the vehicle for the lessee which triggers the TAVT, however the lessee signs an agreement to pay any and all taxes during the lease. At the end of the lease if the lessee choses to "buy" the vehicle from the lessor, this is another purchase triggering the TAVT.
Greg Elton
Supervisor - Help Desk Administration Unit
Georgia Department of Revenue -
Motor Vehicle Division
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Further, you wouldn't want equity, if that equity came directly out of your wallet! Cmon!