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How does NJ sales tax affect the lease vs buy decision?

In NJ, when you buy a car you pay 6.625% sales tax on the full purchase price. When you lease, you pay 6.625% only on your monthly payments (plus the drive-off amount). On a $40,000 vehicle, that’s roughly $2,650 in tax on a purchase vs. $400–$500 spread across a 36-month lease. This tax treatment significantly favors leasing in NJ compared to states that tax the full capitalized cost.

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Kristin Steinmetz

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Fantastic services! I highly recommend them. They make purchasing and leasing cars so easy! This is my third transaction and will continue to use this service.

Fantastic services! I highly recommend them. They make purchasing and leasing cars so easy! This is my third transaction and will continue to use this service.

sharon Gallagher

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Highly recommended for their professionalism, keeping me updated and helping me find the exact car I wanted. The customer service is second to none. Vantage Auto I can't thank you enough for going the extra mile to make me one happy customer.
Highly recommended for their professionalism, keeping me updated and helping me find the exact car I wanted. The customer service is second to none. Vantage Auto I can't thank you enough for going the extra mile to make me one happy customer.

Rita Gutman

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Great experience. The whole process was smooth and straightforward. Omar helped with the transaction and made everything easy to understand. He was professional, patient, and answered all my questions. I really appreciated the good service and would definitely recommend Vantage Auto.
Great experience. The whole process was smooth and straightforward. Omar helped with the transaction and made everything easy to understand. He was professional, patient, and answered all my questions. I really appreciated the good service and would definitely recommend Vantage Auto.

Lina Suarez

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We purchased a 2026 Volvo through the Vantage Group. From the first contact with David every interaction was done with the utmost professionalism. David kept us up to date during our search which involved several changes. I thoroughly recommend this group and will tell my friends to take advantage of David and his group.

We purchased a 2026 Volvo through the Vantage Group. From the first contact with David every interaction was done with the utmost professionalism. David kept us up to date during our search which involved several changes. I thoroughly recommend this group and will tell my friends to take advantage of David and his group.

don moscato

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Vantage was so easy to deal with, we highly recommend them! This beautiful Jeep Grand Cherokee was just dropped off 2 days ago & we love it!!
Vantage was so easy to deal with, we highly recommend them! This beautiful Jeep Grand Cherokee was just dropped off 2 days ago & we love it!!

Samantha Gripps

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Vantage Auto Group is the most efficient and professional group to get a car from.David, my contact was very professional and a pleasure to deal with

Vantage Auto Group is the most efficient and professional group to get a car from.David, my contact was very professional and a pleasure to deal with

Joe Bouton

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I had a great experience with Vantage. From start to finish the process was seamless and quick. My salesperson Mark Viegas was great and very professional. I would recommend him and Vantage to anyone looking to by a new car.

I had a great experience with Vantage. From start to finish the process was seamless and quick. My salesperson Mark Viegas was great and very professional. I would recommend him and Vantage to anyone looking to by a new car.

Brian Dorst

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Sean and the Vantage team made leasing a new car an easy experience. Would definitely recommend.

Sean and the Vantage team made leasing a new car an easy experience. Would definitely recommend.

Kevin Brotspies

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