Taxes and Lease-to-Own

What About Taxes

We all know that when we purchase an item, we have to pay sales tax. How does that work in lease-to-own?

Watch the video and scroll to down to learn more about taxes and lease-to-own.

Taxes are charged per payment. Not on the total amount. 

And did you know that Progressive collects the tax, not the retailer? It’s true! The tax is calculated based on each payment made by the customer depending on the customer’s residence. That means the customer can’t go to a state with lower or no taxes and  pay less taxes . Taxes are based on their home address.

For example, if the customer has a 12 month lease but they end up utilizing the 90-day Purchase Option, they are not responsible for the taxes on the 12 months amount. They will only pay taxes on the 90 day amount.

But what does that mean for you? You don't have to include tax in the approval amount. If the customer is approved for $2,000, then they can buy items with a subtotal of $2,000.

They don't need to worry about tax fitting into the approval – it’s a great selling point!

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