If you have thought more about doing LHPH in Texas because of better repossession opportunities or not included in bankruptcies* here are a few more reasons to add to that list:

·        The dealer will pay the sales tax on only the ACV of the vehicle. This is only paid once

·        If the first lessee defaults after 12 months and the dealer re-lessees it, no tax is paid

·        When the dealer is done with the vehicle and decides to wholesale it, they will get a           Sales Tax Credit for the amount they sell the vehicle for

·        Tax credits can be applied to future deals (within 18 months) to reduce or eliminate           sales tax on future vehicle purchases

·        The sales tax can be added back into the lease

·        Lessees and LHPH Dealers pay less tax overall

Applicable TX administrative Code: Texas Administrative Code, Title 34, Part 1, Chapter 3, Subchapter F, Rule 3.70

* Always confirm with your legal advisors