So here is the final offer i got on this car (36/15k lease):
Cap Cost: 44,093
41,049 (sales price)
595 (Acq fee)
15 (county tax)
Cap Cost Reduction: 8,500
Trade In- 3,000
Net Cap Cost: 35,593
Residual: 22,350 (50%)
Monthly - 399.16 (with sales taxes)/435.08 (with sales and use tax)
(Total tax of 18.5% in the city of Chicago)
DAS: 800, which includes first month of 435, plus title/doc.
They said they messed up when quoting me the DAS amount, as it should have been 1521, which would have included taxes owed on the rebates and the trade in.
I feel like there was a little more wiggle room, but overall, it is under the 1% rule, even with the insanely high Chicago taxes…how’d i do?
You were at $540 before without the trade, $1016 DAS. Now your $435 with $4521 DAS, so with the same down your equivalent payment is $532, so you basically gave them your car for $8 less a month. You probably could have made couple grand selling your car, just saying
I think that 540 was with my car too. They had an estimated value of about 2k at that point.
The way i was thinking about it was that the car offsets the additional tax that i have to pay for living in the city. Most of the deals that i saw on the site had between 6-8% tax, whereas i have to pay 18.5%. At a min, the additional 9% use tax equates to 35/month, which is about 1.5k (maybe a little less), and my car was valued at around that on KBB.
When it comes to the 1% rule, i am taking the 399 (before sales tax) and saying my car is worth around 2k gets a true payment of around 450, which is just about at 1%. Most of the cars i have seen on here are base models, which carry higher residual values, so for this one, which is a fully loaded car, it seems like it is reasonable, but that’s why i am curious.