Correct.
I think so, but let’s see whatone of the experienced hackrs says….
Hi all! I’m trying to buy a 2025 Rav4 SE Plug in Hybrid before the $6500 lease cash goes away at the end of the month. I just paid a refundable $500 deposit to reserve it, which is not shown on this yet. I also plan to buy it out as soon as I can. So MF/monthly payment doesn’t matter.
My main concern is with IL Sales Tax. Here we pay tax on the total amount of the lease payments, not the vehicles full cost. And then on buyout. It’s a bit confusing to me. So if anyone has experience with this in IL with an immediate buyout, that would be helpful!
I live in Metro East STL- Madison County for reference. It should be about 7% sales tax. Have to go to chicagoland to buy the car though. They know I’ll be coming from across state. They don’t know I plan to buy it out immediatly.
To minimize how much I spend on taxes after everything is said and done, which method should I use? 1 pay lease or traditional lease? And then the buyout with either of course.
I got the adj cap cost down as much as I could. I hope the $500 decreases this further, but I have a feeling it’s going to go towards $ down.
Please let me know which lease method I should use. TIA!
Single pay… you might find this helpful…
Single Payment Adjusted Lease Balance Calcuations, Optimality, and Purchase Option.pdf (948.6 KB)
This assumes that taxes are levied on the monthly base payment streams. The way that a single pay lease is structured for immediate buyout is extremely important which is covered in detail in this pdf.
??? Let me know.
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You may also find these helpful regarding ILL sales tax…
Illinois Sales Tax Calculations.pdf (1.3 MB)
Illinois Tax Guidelines- (3-25) st-9-lse.pdf (1006.4 KB)
Illinois Tax Update.pdf (210.7 KB)
The last doc applies to Chicago only.
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Ok, thank you! Got it! 1 payment lease and immediate buyout.
it’s times like this I wish I followed through with that degree in mathematics and computer science. Those numbers are making my head spin!
I’m a bit worried with my dealer. He won’t rewrite my lease terms for a 1 payment lease. He just jotted down the sum of the traditional lease payments and offered it. I also feel like there should be a lot more details???
How do I get him to rewrite the lease for a 1 payment lease?
He’s not cooperating. Time to move on to another dealer. Only this time, you control the deal. Create a lease proposal. Look at the single pay doc that I posted. This might help too…
Building a Motor Vehicle Lease- Data Collection and Calculations.pdf (403.6 KB)
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Down to what number? Give the breakdown starting with MSRP, selling price, etc.
Oh dang, my picture didn’t upload. Sorry I’m new here. I don’t know how to upload a pic now. The button disappeared.
The $650 acq fee is assumed in the adj cap cost.
MSRP/Retail= $48,604.00
DiscounT= $1,978.00
Selling Price= $46,626.00
Rebate= $6,500.00
Government Fee= $416.00
Proc/Doc Fee= $367.70
Capitalized Taxes= $1,668.00
Gross Cap Cost= $49,727.70
Cap Cost Reduction= $6,500.00
Adjusted Cap Cost= $43,227.70
Paid by Customer= $645.58
I got the pic uploaded!
Hello!
Can I get some perspective on this 1 pay lease agreement? I plan to buyout before the next lease payment. The $6500 cash is for lease only and it expires at the end of this month. Otherwise I would just pay cash for this.
I’m in Illinois. I’m not sure how they calculate my sales tax. I’m in collinsville, IL. Everything I read it should be 6.5%. But 6.5% of what?
Any other advice would be great too! TIA!
-sean
This isn’t a one-pay?
I see cook county taxes in there. I am assuming 7.25% tax rate if you are in cook county. In which case it’s 7.25% tax on the $6500 rebate and total base monthly payment.
What’s the MSRP? From what I can gather, this is a RAV4 Prime SE. At $531/month with $7k down, you may want to look at the Lexus NX hybrid or the Crown Signia, which should be much cheaper and leaves you with enough extra in your wallet to fill the tank a couple of times more in a year.
No, I live in Madison County. Buying the car from Cook county. Did they fudge the tax?
Oh dang. I didn’t see anything that would confirm that this is a 1 pay lease or not. How can I twll? They took days trying to write me up this 1 pay lease. Even calling TFS multiple times to figure out how to do it.
I would ask them to confirm the tax rate that they are using to come up with the tax amount.
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It’s actually supposed to be a 1 pay lease where I pay $19k at lease signing. And then I plan to buy it out in a couple weeks.
Not interested in Lexus. They are nice, but not my style. Insurance would be more for a premium brand too.
Any advice on these numbers?
So your one pay is $19K? I am confused, Why not just lease it as minimal down for monthly than buy it out? Why have 19K hung up
Side note: $19K for a one pay lease is nuts for this car lol
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$49,770.20 would be the total amount to buy the car. I don’t see anywhere it says you are paying all 35 payments up front. It just shows first month due and the $6500 looks like it just disappeared unless this was a high MSRP RAV4?
This is a contract meaning you already signed it, so did you have an out of body experience when you signed and paid only your first month? ($530?) when you drove off with the car?
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Honestly, the Lexus will have very similar, if not lower insurance than a RAV4. Insurance costs also factor in historic loss record, along with potential cost to repair. Anything you plug in to charge automatically costs more to repair. Besides, there’s certain release if dopamine that occurs when you know you paid less for a luxury vehicle than most people pay for their Camry/Accord/Hyundai/Kia (yes, I own a BMW and Mercedes which were under $35k combined which shocks most people)
As for the numbers, I’m a cheapskate, so I’d walk away from this deal. My friend once told me, “patience is the enemy of greed”. In two days, the dealer will call you desperate because the clock is ticking louder than they thought and the production bonuses/allotment incentive means they’d much rather park a $60k 4Runner in that spot than a $50k RAV4 Prime because 4Runners tend to sell at MSRP. Just look at the “signed” deals to get an idea of where deals are landing.
If your ultimate goal is to buy the vehicle outright, then negotiate a finance deal. Right now, the dealer is using the $6,500 (almost 12%) as their profit on the vehicle when most Toyotas are yielding under 10% in profit.