What if I move to another state with my leased car?
If you move to another state with your leased vehicle, immediately notify your lease company of your move.
This is not only to change your billing address and the car’s “garaged” address but, more importantly because sales tax rates may be different between your old location and your new one, the tax portion of your monthly payment may change — up or down. This should only amount to a small change in your total payment, unless you move into a state, such as Texas or Georgia, in which taxes are required to be paid, in total, up front at the time you register your car in the new location.
If you move from a state that taxes entire value or sum of lease payments (i.e., you are not paying sales tax with each monthly payment), you should check with your new state’s Department of Motor Vehicles to determine if you can get credit or a refund for part of the tax you’ve already paid.
Registration and tag fees may also be different when you register the car in the new state.
Also notify your car insurance company of your move. Your insurance rates may also change due to differences in state insurance rates, even if you stay with the same company. In some cases, your old insurance company may not be licensed to do business in the new state. In that case, you’ll have to look for another company.
If you move to another state there are lots of things you must think about and handle. Don’t overlook your car lease as one of those things.
Posted in: General