Lone mountain SCAM

Mr. Hoovestol, question for you Sir,

If i lease a brand new truck from Lone Mountain on a 5-year, zero balloon payment at the end, meaning i own the truck outright upon my 60th monthly lease payment, do i then have to pay sales tax? And if i do, is that tax based on the value of the truck when the lease commenced 5 years ago, or is it on the value of the truck at the end of the lease? And is the sales tax paid to the state Lone Mountain purchased the truck in, or is it payable to my state of residence?

Thanks in advance to you or anyone else here who knows these answers.

 

That's probably a better question to ask your stat DMV/SOS. As far as I've heard CMV's don't have sales tax, but as always verify with your state first.

 

Because it is a buyout lease it’s treated as a purchase. You are allowed to deduct the depreciation each year. It’s based on a formula that your a accountant knows. If it was a straight lease that you turn in at the end then you would deduct the payments. As for sales tax, no such thing. That’s why we pay $2500 per year for IFTA plates. That’s between you and your state.

 

Really? My soot filled truck I bought from them has 850k miles now and still runs like new. I put 450k of those miles on myself and the truck has paid for itself several times over. You are given every opportunity to inspect the truck inside and out. They even come with a engine warranty. They do not sell junk.

 

When you buy a new truck you pay a 12%Federal Excise Tax ( FET) It is for new trucks only.

 

Arizona and Nevada are 2 states where you also have to pay sales tax, a guy I know titled his new truck in NV and he paid $23,000 in sales tax in Nevada. Plus he runs interstate.
I just bought a 2019 Western Star, titled it in Missouri, no sales tax because I'm interstate, if i only ran intrastate in MO I would have had too pay sales tax.

 

Im in the midst of registering my truck ( from Lone Mountain ) in NY because there is no sales tax on big trucks here, but South Dakota ( where the company Im moving to is located) charges 4% excise tax on big trucks.

 

The original poster might have solved his problem by doing a rigdig report on the truck. It would have pointed out any accidents and or insurance claims.

 

My lease is through Freightliner. There is no buyout just payments, and it's a straight expense.

The leasing company owns the truck until you pay it off, and they depreciate it.

Might wanna have a talk with your accountant.

And there is sales tax on big truck purchases, which is one of the reasons people lease, to avoid them.

 

I picked out my 2016 in August of 2015 from Lone Mountain. I have had major motor failures and the occassional quirky sensor issues. All of my issues have been Volvo issues none of them were through fault or action on the part of LM. The price tag for the truck 166k was roughly 8k more than going through the local dealership and they couldnt get what I wanted for at least 3 months at the time i was ready to make the commitment. So between an unwillingness to wait, and the cost being relatively close, especially minus FET I opted to go with LM. I have never regretted my choice. Keep in mind they are a finance/reseller company not the manufacturer, and when purchasing any used EPA truck there are additional risks to consider.