GMC rant

campgottagopee · Jul 9, 2010

severine said:
Read that contract carefully. Tax time always brought out a lot of unhappy lessees in the Assessor's Office. Many had to pay a different tax amount to the lessor (some calculate an average tax rate for the state and charge it to all) and would be up in arms about it. Then they would start pouring out the other complaints they had about leasing, usually ending in, "I'm never leasing a car again!"

I have never leased, but I've heard enough of these complaints to be very wary of the process.

This makes no sense to me---in NYS there is nothing like this at all. Tax on a lease is based on your payment x term, then x your sales tax factor of the county you live in.

Example: 350 payment X 36 mo's = 12,600 x 8% = 1008 due in tax, which can be either capped into the lease price, or paid up front.

Must be a CT thingy......

If I had to "buy" a car, I would lease it----just makes sense.

Only way someone gets "hurt" in a lease is A. they go WAY over on milage, or B. they trash the car because it's not "theirs".

severine · Jul 9, 2010

campgottagopee said:
This makes no sense to me---in NYS there is nothing like this at all. Tax on a lease is based on your payment x term, then x your sales tax factor of the county you live in.

Example: 350 payment X 36 mo's = 12,600 x 8% = 1008 due in tax, which can be either capped into the lease price, or paid up front.

Must be a CT thingy......

If I had to "buy" a car, I would lease it----just makes sense.

Only way someone gets "hurt" in a lease is A. they go WAY over on milage, or B. they trash the car because it's not "theirs".

CT has a municipal motor vehicle tax that you pay annually. It is calculated by taking 70% of the blue book value of the vehicle on the assessment date times the mill rate. (The mill rate being a calculation of $ needed by the local government to run/total taxable assessments from the grand list [so minus any veterans' exemptions, freezes, etc.]...) So the taxes due this month (because the due date is July 1st with a 30-day grace period) are based upon 70% blue book value October 1, 2009 (nearly 1 year ago). This means that if you're paying in your taxes on your lease with your normal payments, they are ESTIMATED tax payments, as the taxes aren't calculated for sure until some time after you purchase the vehicle. Just like municipal real estate taxes being estimated into your escrow with your monthly mortgage payment.

campgottagopee · Jul 9, 2010

severine said:
CT has a municipal motor vehicle tax that you pay annually. It is calculated by taking 70% of the blue book value of the vehicle on the assessment date times the mill rate. (The mill rate being a calculation of $ needed by the local government to run/total taxable assessments from the grand list [so minus any veterans' exemptions, freezes, etc.]...) So the taxes due this month (because the due date is July 1st with a 30-day grace period) are based upon 70% blue book value October 1, 2009 (nearly 1 year ago). This means that if you're paying in your taxes on your lease with your normal payments, they are ESTIMATED tax payments, as the taxes aren't calculated for sure until some time after you purchase the vehicle. Just like municipal real estate taxes being estimated into your escrow with your monthly mortgage payment.

WOW---I'd be pissed too then, nor would I lease in CT. That explains it, thanks.

severine · Jul 9, 2010

campgottagopee said:
WOW---I'd be pissed too then, nor would I lease in CT. That explains it, thanks.

Even if you own your car, you still pay the taxes. It's just that you don't get messed up with estimated payments. That's why some lessors just set a mill rate for the entire state and collect based upon that, to try to make it less confusing. Because what happens is Oct 1, the assessments are "frozen" (though not calculated until Nov-Dec when the DMV gives the list to the Assessor's Office).. then all the other assessments need to be calculated and reviewed for personal property (businesses) and real estate, with the grand list being made official by the end of February. Then you have to wait for the budgets to be set within the departments (and in some towns, for the voters to agree to the budgets) before a mill rate is finally set, usually in late May to early July (early July being late). THEN the tax bills come out, officially due July 1st but they have 30 days to pay.

Though we don't deal with separate school taxes, fire taxes, etc. in CT. It's all rolled into your real estate, motor vehicle, and personal property (business) annual municipal taxes.

ctenidae · Jul 9, 2010

severine said:
CT has a municipal motor vehicle tax that you pay annually. It is calculated by taking 70% of the blue book value of the vehicle on the assessment date times the mill rate. (The mill rate being a calculation of $ needed by the local government to run/total taxable assessments from the grand list [so minus any veterans' exemptions, freezes, etc.]...) So the taxes due this month (because the due date is July 1st with a 30-day grace period) are based upon 70% blue book value October 1, 2009 (nearly 1 year ago). This means that if you're paying in your taxes on your lease with your normal payments, they are ESTIMATED tax payments, as the taxes aren't calculated for sure until some time after you purchase the vehicle. Just like municipal real estate taxes being estimated into your escrow with your monthly mortgage payment.

That's odd. My lease companies just pay the tax bill when they get it, then add the amount on to my balance due. Never goes as "past due," or gets charged interest.

severine · Jul 9, 2010

ctenidae said:
That's odd. My lease companies just pay the tax bill when they get it, then add the amount on to my balance due. Never goes as "past due," or gets charged interest.

Yes, the lease company does pay... the problems come in with their arrangement with how you pay THEM. Is it monthly with an estimate before then? And what happens when you get rid of the leased car? That usually becomes a mess if you didn't transfer the plates to another car....

Even though I haven't worked there in 3.5 years, it's still stuck with me.

ctenidae · Jul 9, 2010

severine said:
Yes, the lease company does pay... the problems come in with their arrangement with how you pay THEM. Is it monthly with an estimate before then? And what happens when you get rid of the leased car? That usually becomes a mess if you didn't transfer the plates to another car....

Even though I haven't worked there in 3.5 years, it's still stuck with me.

That's what's weird- there's no payment arrangement with the lease company. They just pay the actual taxes when they get the bill, and tack it on to my "amount due." At the end of term, obviously, I have to have it paid off, but until then, it just sits on the account. Anything over the regular monthly payment goes to pay down that balance. No estimates, no nothing. Just the actual amount of the tax bill.

campgottagopee · Jul 9, 2010

severine said:
Even if you own your car, you still pay the taxes. It's just that you don't get messed up with estimated payments. That's why some lessors just set a mill rate for the entire state and collect based upon that, to try to make it less confusing. Because what happens is Oct 1, the assessments are "frozen" (though not calculated until Nov-Dec when the DMV gives the list to the Assessor's Office).. then all the other assessments need to be calculated and reviewed for personal property (businesses) and real estate, with the grand list being made official by the end of February. Then you have to wait for the budgets to be set within the departments (and in some towns, for the voters to agree to the budgets) before a mill rate is finally set, usually in late May to early July (early July being late). THEN the tax bills come out, officially due July 1st but they have 30 days to pay.

Though we don't deal with separate school taxes, fire taxes, etc. in CT. It's all rolled into your real estate, motor vehicle, and personal property (business) annual municipal taxes.

Someone WAY smarter than me thinks that's a good idea, to me, it's confusing as hell, makes no sense and would do nothing but make people angry. Oh, wait, that's just any local taxes....carry on.:wink:

campgottagopee · Jul 9, 2010

ctenidae said:
That's what's weird- there's no payment arrangement with the lease company. They just pay the actual taxes when they get the bill, and tack it on to my "amount due." At the end of term, obviously, I have to have it paid off, but until then, it just sits on the account. Anything over the regular monthly payment goes to pay down that balance. No estimates, no nothing. Just the actual amount of the tax bill.

Guess NY is the place to lease----everything is set in stone up front be4 you sign any contract.

ctenidae · Jul 9, 2010

campgottagopee said:
Guess NY is the place to lease----everything is set in stone up front be4 you sign any contract.

Mine are in MA, which is similar that way, I guess.

severine · Jul 9, 2010

That's not to say that all lessors in CT use the estimated escrow method. But I heard a lot of complaints about it in my 8.5 years there.

andrec10 · Jul 9, 2010

Ct does some wierd things with Car sales and the repeated taxing of them. For once, NY has something on another state.:-o

powbmps · Jul 11, 2010

Great timing for this thread to be revived :razz:.

Loaded up six of us to go camping in upstate NY on Friday. Roof box on the top, bikes on the back. Transmission crapped out in Rutland, VT. With 75,000 miles on the vehicle, I'm glad to have the 100K coverage :wink:. Called the GM # and a tow truck was dispatched. Luckily there was a dealer right in town and by the time I called they had already reserved a full size SUV at Enterprise. Making the switch was rough in the heat, but managed to get back on the road in about an hour.

I'll post up when I find out what the problem was.

snoseek · Jul 11, 2010

powbmps said:
Great timing for this thread to be revived :razz:.

Loaded up six of us to go camping in upstate NY on Friday. Roof box on the top, bikes on the back. Transmission crapped out in Rutland, VT. With 75,000 miles on the vehicle, I'm glad to have the 100K coverage :wink:. Called the GM # and a tow truck was dispatched. Luckily there was a dealer right in town and by the time I called they had already reserved a full size SUV at Enterprise. Making the switch was rough in the heat, but managed to get back on the road in about an hour.

I'll post up when I find out what the problem was.

Wow!

My transmission in my previous s-10 trucked went at 9000 miles. Clearly manufacturer lemon. They handled it first class I will say. Best of luck, extended covereage worked out this time for sure!

bvibert · Jul 11, 2010

powbmps said:
Great timing for this thread to be revived :razz:.

Loaded up six of us to go camping in upstate NY on Friday. Roof box on the top, bikes on the back. Transmission crapped out in Rutland, VT. With 75,000 miles on the vehicle, I'm glad to have the 100K coverage :wink:. Called the GM # and a tow truck was dispatched. Luckily there was a dealer right in town and by the time I called they had already reserved a full size SUV at Enterprise. Making the switch was rough in the heat, but managed to get back on the road in about an hour.

I'll post up when I find out what the problem was.

Bummer dude! I hope you get it straighten out without too much hassle!

powbmps · Jul 15, 2010

Sounds like a stuck solenoid led to some serious troubles. New transmission is being shipped in from North Dakota. Holy sh*t am I glad it's covered under warranty.

Puck it · Jul 15, 2010

powbmps said:
Sounds like a stuck solenoid led to some serious troubles. New transmission is being shipped in from North Dakota. Holy sh*t am I glad it's covered under warranty.

Do you find that while on a slight incline the Acadia tends roll backwards? The transmission can not hold. I find this is the case with the wife's Enlcave. On a steep hill, it is like having a std transmission.

gmcunni · Jul 15, 2010

Puck it said:
Do you find that while on a slight incline the Acadia tends roll backwards? The transmission can not hold. I find this is the case with the wife's Enlcave. On a steep hill, it is like having a std transmission.

yup, noticed this immediately.

powbmps · Jul 15, 2010

gmcunni said:
yup, noticed this immediately.

I questioned the dealer about this when I first got the vehicle. The answer had something to do with "less resistence" and "improved fuel economy".

Can't quite understand how the big V8 in the Tahoe loaner I have gets better mileage than my Acadia. Maybe the bigger motor more efficiently moves the larger mass of an SUV?

Puck it · Jul 15, 2010

gmcunni said:
yup, noticed this immediately.

It is very strang and it is not a belt transmission either.

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