A new Mercedes-Benz lease in Arizona is written by Mercedes-Benz Financial Services, the brand's captive lender, which sets the residual value and the money factor for each model, term, and mileage every month and sometimes adds lease cash. The dealership sets the selling price the lease starts from.
Arizona then taxes the lease one payment at a time, at the selling dealership's city rate (8.3% in Gilbert and Mesa, 7.8% in Chandler, 8% in Scottsdale, 8.1% in Tempe), and taxes any cash you put down at signing. On top of that comes Arizona's vehicle license tax at registration, figured on 60% of the model's base MSRP. Compare leases by the selling price, the money factor, the residual, and the total you pay over the term, not the monthly figure alone.
The rate follows the dealership, not where you live: a Scottsdale resident leasing from a Gilbert store pays Gilbert's rate on each payment.
Cash you put down to lower the payment is taxed when you sign (Arizona Department of Revenue ruling TPR 03-7), and you do not get it back if the car is totaled or stolen early in the lease. See money down on a lease.
Arizona's vehicle license tax is charged at registration on 60% of the base MSRP, $2.80 per $100 in the first year, and comes due every year the car is registered, leased or owned. On a 2027 GLC at its starting MSRP, the first year's vehicle license tax is about $880.
| Selling dealership's city | Tax on each lease payment |
|---|---|
| Gilbert | 8.3% |
| Mesa | 8.3% |
| Chandler | 7.8% |
| Scottsdale | 8% |
| Tempe | 8.1% |
| Phoenix | 9.1% |
Mercedes-Benz Financial Services, the brand's captive lender, writes most new Mercedes-Benz leases and sets the residual values, money factors, and lease cash each month. The dealership sets the selling price.
Arizona taxes each lease payment at the selling dealership's city rate, such as 8.3% in Gilbert and Mesa or 8% in Scottsdale, and taxes cash down at signing. The vehicle license tax is charged separately at registration every year.
It can be when you have the cash and the lender offers a lower money factor for paying up front. Arizona taxes all the payments at signing, and the money is not returned if the car is totaled. Compare the one-pay total with paying cash for the same car over the same years.
The selling price, the money factor markup, and the add-ons are set by the dealership. The residual and the base money factor come from Mercedes-Benz Financial Services and are the same at every dealership in a given month.