2016 Honda Fit LX $190/month 0 down lease

Ask the Hackrs
1

Just signed a lease over Memorial Day weekend and I’m still not sure how these numbers worked out. Located in Texas where taxes should would be paid up front, so I have no idea why the listed taxes is $231 when it should be $1013.

MSRP: $17525
Sales Price: $16219.53
Sales Tax: $231.97
License/Registration: $190.25
Doc Fees: $150
Acquisition: $595
Gross Capitalized Cost: $17386.75

The stated MF and residual for 36/12k should be 0.00165 and 64%. I only paid the first months payment and have 35 payments left at $190/month.

With my calculations this should come out to $218.60/month, there was no listed cap reduction or lease cash…what am I missing?

2

It’s a little complicated in Texas. While it’s true that sales tax is levied on the entire selling price of the car, dealers also receive sales tax credits that they apply at their discretion towards your lease.

In Texas, sales tax is paid on the net purchase price, minus any trade-in. Honda Financial Services is the owner of the vehicle, and lease returns are effectively trade-ins. Honda FS allocates this trade credit back to the dealer, who can then use it at their discretion.

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3

Mind telling us the dealer and sales rep? Thanks.