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Car Buying Advice - Leasing Car from a Different State

jayceeejayceee Posts: 9
edited June 2017 in Mercedes-Benz
Hi,

I live in CA, but I found a car in Chicago suburbs that I would like to lease. It's a Mercedes SUV. Are there any restrictions either from Mercedes or from IL/CA states that I need to be aware of? Especially, given that CA state have stricter rules in bringing cars from out-of-state.

Thanks!

Answers

  • kyfdxkyfdx Posts: 120,318
    jayceee said:

    Hi,

    I live in CA, but I found a car in Chicago suburbs that I would like to lease. It's a Mercedes SUV. Are there any restrictions either from Mercedes or from IL/CA states that I need to be aware of? Especially, given that CA state have stricter rules in bringing cars from out-of-state.

    Thanks!

    If you are purchasing, then sales tax gets stickier. But, if you are leasing, the bank takes care of registering the vehicle where you live, and all sales tax is taken care of there. As long as you don't make any CAP cost reductions, you should just pay CA sales taxes. I'm pretty sure that all Mercedes are 50-state compliant.

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • jayceeejayceee Posts: 9
    I am planning to lease. I was concerned that IL state might require taxes on full purchase value to be paid upfront, but looks like they changed that rule starting Jan 1, 2015. That leaves me to just worry about taking the car to CA DMV for vehicle inspection. Thank you for your response. It is reassuring!
  • kyfdxkyfdx Posts: 120,318
    jayceee said:

    I am planning to lease. I was concerned that IL state might require taxes on full purchase value to be paid upfront, but looks like they changed that rule starting Jan 1, 2015. That leaves me to just worry about taking the car to CA DMV for vehicle inspection. Thank you for your response. It is reassuring!

    If you live in CA, and you are leasing, you shouldn't pay taxes in Illinois.
    If they require you to pay taxes in Illinois, you shouldn't do it, as Illinois collects tax upfront, and you'd still owe tax on the payment, once it's registered in CA.

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • jayceeejayceee Posts: 9
    Got it. Thank you!
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