^^ Actually its a perfect legitimate way of acquiring vehicles so long as the MFR's don't have a buy-out clause with the contract.
CA law states used car dealers cannot buy inventory from new car dealers tax free.
On top of that, sales tax is only applied to that month's lease payment.
Lastly, the kicker, I guess, is that, if you lease a new car from the dealer, drive it 5 miles to your own showroom, buy out the lease and get the title, the car is no longer classified as a "New Car", its now "Pre-Owned". In either case it sounds like shady business because the intent was not to use the lease to its full term. A couple of years back, there were domestic dealerships who offered $5k discount on vehicles so long as we do the financing thru the dealership at 8-9%. Needless to say after two months, people were refi'ing the loan away. Buying cars is a love-hate relationship I guess
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