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I live in Illinois where when you lease a car you pay taxes on the full price of the car.

I've been going over lease calculators on the internet but none of them seem to handle this situation. How should I figure the added taxes on a site like leaseguide.com?

What I have been doing is adding the extra tax (tax rate*residual) to costs added to the lease and having the sales tax figure out the tax on the depreciation. Is this correct or is there a better way to figure it out? Should I figure the entire tax of the adjusted cap cost and divide it by the term and add that to the monthly payment?

I guess basically the question boils down to how/if dealers charge interest on taxes for a lease.

Thanks for the help.
 

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I think it's the same as Texas where we have to pay the full sales tax up front. Take the sales price of the vehicle times the sales tax rate, then add it to the cap cost to get the adjusted cap cost. The residual is the sales price of the car times the residual percentage.
 
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