Reviewed by Arthur Geller, Auto Lease Concierge · Updated · How our numbers work
If you live in Cherry Hill, Mount Laurel or Princeton, some of the closest dealerships are in Pennsylvania. And because lease programs and dealer pricing vary by region, the best deal on the car you want might be on the other side of the river. The good news: leasing from a Pennsylvania dealer as a New Jersey resident is completely normal.
Here's what's different, and what to check before you sign.
Which state's tax do I pay?
New Jersey's. Lease tax follows where the car is registered, and your car is registered at your home address. New Jersey collects its 6.625% sales tax up front on a lease, not on each payment. I explain the math in how New Jersey lease tax works.
The one thing to watch: a Pennsylvania dealer's first quote is often written with Pennsylvania tax by default. Make sure your quote says New Jersey tax before you sign.
How do registration and inspection work?
New Jersey's Motor Vehicle Commission has a page for vehicles leased or purchased outside New Jersey. In short:
- The car is titled and registered in New Jersey at an MVC agency. The dealer or leasing company usually handles this.
- You get a temporary registration, called a Green Card, that's good for 14 days.
- Within those 14 days, you take the car to a state-operated inspection station for its one-time, five-year new car inspection decal.
Your insurance also needs to be a New Jersey policy for your address, the same as with any car you own.
Why would a New Jersey driver lease from a Pennsylvania dealer?
- Different regional programs: manufacturers sometimes run different lease cash or rates in different regions, so the same car can have a lower payment through a dealer in another region.
- More dealers to compare: the Philadelphia suburbs have a lot of dealers for most brands, which means more chances at a good selling price.
- Inventory: the trim and color you want might simply be sitting on a Pennsylvania lot.
It isn't always better. Sometimes the best deal is a few miles from your house in New Jersey. That's why I compare dealers in New Jersey, Pennsylvania and Delaware for every customer.
Does the same apply to Delaware drivers?
Yes. A Delaware resident can lease from a Pennsylvania or New Jersey dealer, and the car is titled in Delaware. Delaware charges a document fee at titling instead of sales tax. See Delaware car lease taxes and fees.
Want me to handle it?
I quote every South Jersey lease with New Jersey tax and handle the out-of-state paperwork with the dealer, then deliver the car to your door for free. See how leasing works for South Jersey and send me the car you want.