Kevin Londerholm | May 7, 2020
Are you a BHPH Dealer that is tired of paying state sales tax at the time of the transaction on the sales price of the vehicle? Are you tired of using the entire down payment for sales tax? Are you tired of paying state sales tax up-front and immediately being cash-negative at the start of the deal?
It is time you made the switch to LHPH!
For lease-here pay-here dealers in “pay-as-you-go” states, the sales tax is calculated only on the actual monies collected by the dealer (i.e. down payment, first payment). Sales tax is then remitted to the state on each lessee payment received for the remainder of the lease. With this structure, LHPH dealers can be cash-positive from Day 1.
Watch as Mike North, Partner at the Accounting Firm Katz, Sapper & Miller explains that this sales tax pain that BHPH dealers feel is the the #1 reason they make the switch to LHPH.