Not all states tax rebates. Do you know that IL does? If not, then it doesn’t matter how it is applied.
Read sm1177’s post about the tax being charged.
Tax on rebates, that you mentioned earlier. Need me to quote you?
If the incentives are taken as rebates, the capitalized cost is higher, no? Higher cap cost = more depreciation = more tax, no?
Look at the tax in the deal and what he’s paying tax on and the amount.
Didn’t you mean taxed rebates here? That’s why I wanted to clarify that not all states tax rebates. If not taxed then it doesn’t matter where you put them in the lease. Different from what you say now.
How are the S90 moving now that you can’t deep discount on A plan?
You’re reading too much into my posts. What I’m saying is if the $10,750 incentives are not knocked off the selling price, then they wind up taxed. I’m not sure how IL or other states besides CA handle it, but CA wants to tax the rebates. That means the rebate counts as down payment on a purchase or towards the drive off on a lease. Essentially, the selling price is not reduced and as a result and CA get the tax they want. The tax sm1177 showed indicated that the taxed amount of depreciation included a selling price before the $10,750 was deducted. I don’t know about IL, but in CA we reduce the selling price by the amounts of the dealer incentives, including the A-Plan incentive. We’re supposed to provide a copy like this for the customer to sign. I think sm1177 will be a lot better off with his selling price reduced by $10,750. If so, no rebate will show on the lease contract for anybody to tax or not tax.
I don’t think we needed to worry about losing deals for not discounting S90s below A-Plan. The S90 is a lot of car for the payment with A-Plan (or Costco or Sam’s, which were just mooching the A-Plan program). Big Volvo sedans have never done very well out here. They seem to be mostly under the radar.
Anybody see the long version of this commercial? Based on Walt Whitman’s “Song of the Open Road” and narrated by Josh Brolin…
I remember there was like a 4 minute version of this commercial, but can’t find it. It had a sequence with buffalo dancing in a circle. This one is the same length as above, but different.
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Interesting video of a '17 S90
So the dealership reached out to me once again and revised the offer:
*MSRP 56,395
**Selling price: $38,991 (31% off MSRP)
**Administrative fee: $399
**Capitalized Taxes: $1,166
**Acquisition fee: $995
**Residual 52%
**Money Factor is .00003 (From 0.00028 with 5MSDs of $2,250)
**Miles on the vehicle are roughly 7,600
**Residual value: $27,804
**DAS: $0
**New Monthly: $322.32
Good deal?
Looks like a really really good deal. How much is due at signing including the $2,250 MSD? $0 doesn’t sound right. I bet they accidentally double-dipped into A-Plan and excess discounting.
Just confirmed and DAS is only the MSDs and the first months payment which includes tax too. Too good to be true?
please share dealer info!
It’s a loaner, so no a-plan and I don’t see @sm1177 talking about a-plan at all. Did I miss something?
I was just speculating on how sm1177 got such a low selling price. Some dealers may not know the rules. On 8/15 sm1177 implied he qualifies for A-Plan.
Yes that is correct. I do qualify for A-plan but in this particular instance there was no A-plan discounting
What matters is what they’re selling the car for, and your deal looks like a candidate for a Unicorn Award.
I think they made a mistake or are playing games with you.
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The GM called me personally. They are just desperate to get rid of the car because it has been on their lot for a long time now
What’s stopping you from taking it? That’s a ridiculous deal.
Requested for the numbers for a 24/12k and want to see if they are any better before pulling the trigger