No risk with MSDs. The interest rate you are paying is near 0%. When money is that cheap, take it. I would not recommend rolling in non-taxable items (registration, first month payment), because then you are subjecting yourself to more sales tax. But the interest rate, especially if you max the MSDs is so low that I wouldn’t worry about the interest. You can put that money to better use in the world.
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Ok, I’m truly greatful for the advice. I have to pay sales tax on the depreciation right? Thank you so very much.
Correct. The entire payment is taxable, so you pay tax on the depreciation component and interest component.
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Thank! Thank! You pay sales tax that you suggested I roll into the payment on the lease portion that I’m paying " the depreciation " right ? It’s a little over $3000 dollars in tax. See I’m glad I got advice I just figured why pay tax on something I already had to pay. However your way is less $ upfront. I’m so greatful for the advice Thank you.
Sales tax will just be part of the monthly payment. The items typically due at signing are: first month payment, state registration, dealer document fee and MSDs. The acquisition fee can also be paid at signing. Of those items, only the dealer document fee and acquisition fee are subject to sales tax. The registration and first month payment are not taxable; therefore, you would not want to roll them into the capitalized cost and make them taxable. My preference is to only pay (1) first month payment; (2) dealer document fee; (3) registration and (4) MSDs at signing. I roll in the acquisition fee. I think it is fine to roll in the dealer document fee, I just don’t typically. Hope this helps.
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Is the below a good deal? RX 350 F Sport; 36/10 lease
36 months, 10k miles and upfronts down at signing?
$1,183 at signing
$634.96 plus tax per month
$6,000 discount off of MSRP($60,090)
.00105 Money Factor
$37,188.65 Residual.
No. Below is the deal I got last December. You should take advantage of MSDs.
I was at $468 with similar down payment, however $4500 of MSDs. It also included $1250 in incentives. Lexus of Van Nuys…Keyes. Christophe Keen.