See, when you say stuff like “your misleading statements,” that’s where I have a problem. I can see that different states have different regulations and lease structures, I get that and have acknowledged that.
What I said was correct in CA, at least for Volvo, and I expect other makes as well. The rebates are supposed to be “customer facing,” meaning identified as rebates so the customer knows it and can’t come back and say they didn’t get theirs. CA want’s to tax the rebates and have them credited after tax and license is added.
As I said before, if someone was putting in $4,000 to start a lease out of their pocket and there was a $1,000 rebate, the drive off section would show a total of $5,000. With $5,000 total drive off instead of $4,000, the payment will be lower, as more money will go to the cap cost reduction. What I was trying to say is if the rebate is used to reduce the customer cash, then the payment remains the same. It depends if the lessee wants to add the rebate to his own cash or use it to reduce his cash. Strictly speaking the rebate doesn’t lower the payment if the lessee uses it to reduce their cash out of pocket. My main point is customers don’t automatically take it as a cap cost reduction, which appears to be your preference. In CA, doing it your way will cause tax to be due on the cap cost reduction, increasing the cash due at signing.
It’s not easy to be crystal clear with a brief post, and I’m not interested in writing essays to avoid confusion and argument from members such as you. I would be happy to pick apart your posts like you’ve been doing to mine if you like.
You have two different accounts? Why? Also, this post was posted in the Marketplace, in a BROKER’s thread. If you want to share your deal - open your own thread in Share Deals.
@Akaletsky I just leased a car through Carvoy thanks to this thread, and saved $50/month (3 year lease) over what I thought was the best deal, while getting an equivalent car with a better color combo according to my wife.
MRSP: $61,835
Selling price: $55,213.59
39 month term with 15k miles per year: $764.10 AFTER taxes.
MF: 0.00085
RV: 52%
Due on signing: $1114.75
