
LHPH Advantages in Texas
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