# 2018 Honda Civic LX Calculations Help

So I am trying to figure out this \$0 down deal sheet but the dealers calculations seem iffy. And they have not acknowledged the \$1200 lease cash available.

I believe the MSRP is \$19,745 however an earlier deal sheet stated “Market Value” \$23,630. I’m not 100% which value they are using to calculate the residual.

On the deal sheet it looks like they are calculating RV off of the Net Cap Cost \$20,119.55 which is the Cap Cost + Acq. Fee + License + Doc. But even then it does not match (\$11,266 vs \$11,555).

If actual MSRP is \$19,745 then a 56% RV is 11,057. Why would they show \$11,555?

Weird thing is LH calc comes out to \$282, using \$19,745 and no rebate.

LH Calc

Seems like Honda dealers do this weird crap where they don’t show the destination fee in work sheets, that would be my guess to what’s going on. I’m not sure what people insist on leasing civic’s, they just don’t lease well.

You’re saying MSRP plus destination? That would make destination a random \$888 to get to \$11,555 RV, I think.

This lease stinks but don’t have many options. Trax and cruze are out. Corolla lease is also similar if not worse. Looking into optima. Jetta haven’t looked into. Buick encore maybe?

Look at the jetta, both new and old body styles.

MSRP is probably \$20635, including the \$895 destination charge.

Ah ok then with \$20,635 MSRP and sales price of \$18,985 LH Calc shows a payment of \$268 vs their \$283.

But if they give me the \$1200 lease cash that is available according to the incentives then it should come off the \$18,985 right? I have a feeling they will keep saying “we got to \$18,985 with the rebate included.” Looks like they are calculating the Monthly Depreciation using the Net Cap Cost \$20,119 instead of the Cap Cost - incentives. Is that right?

If they do apply the \$1200 rebate to their Cap cost \$18,985 then I should be at \$231?
With rebate LH Calc

The drive-offs are different. If you make the drive-offs similar, the numbers match.

The lease cash seems to be dealer cash, so I wouldn’t be surprised if they said it’s already included in your cap cost.

In the calculator I put the same drive-offs they quoted:

Doc Fee: 245
Acq Fee: 595
Lic/Reg Fee: 294.5

And it shows \$268 vs \$283

\$1200 I got from the edmund guys

Due as signing is not the same. Dealer’s quote is only 1st month payment of \$283 vs the calculator’s \$819.

Ah good catch so then the numbers are actually legit?

This is the best I will get with \$0 seems pretty bad

The actual MSRP is 20,635 = RV / RF = 11,555.60 / 0.56
The sell price (what they call cap cost) = 18,985.05
This tells me that they capitalized the acq fee, license fee, and doc fee…
Gross Cap = 18,985.05 + 595 + 294.50 + 245 = 20,119.55
There is no cap reduction so, the net cap is also 20,119.55
Neither the term nor the sales tax rate is disclosed. We can easily find the term by solving the MF equation by setting it equal to the base payment of 271.15 giving a 36 month term.
So, we have…
.001050 x (20,119.55 + 11,555.60) + (20,119.55 - 11,555.60) / 36 = 271.15

The effective sales tax factor is 283.93 / 271.15 = 1.0471326…
Therefore, the effective sales tax rate is approximately 4.71326%
In most states, government fees aren’t taxable and, I suspect this is the case in your state as the 294.50 license fee is capped. Hard to comment any further unless I know your state and sales tax rate. States calculate sales tax in a variety of ways… Some tax the entire base payment; some tax only the depreciation component; some tax the total of the base payments while others tax the selling price. It appears that either your base payment or the depreciation component is taxed.
There was no lease cash used in your lease sheet.

283.93 includes the 12.78 sales tax. The sales tax rate is not provided. The base payment is 271.15.

Yes you are completely correct. The 283.93 includes 12.78 in sales tax at 4.712% (I entered this on the calc). The tax is on the base payment.

Yup, your actual sales tax rate appears to be 4.7125%… 271.15 x .04712 = 12.78… That’s a funky rate.

Mike,
In what state do you reside? I’m curious to know the treatment given the sales tax.
Thanks!

Its for hawaii 96804

Yeah so I guess given their \$283 payment it is too much for the civic. Doesn’t even hit the 1% rule for a basic sedan. Don’t see the \$1200 rebate info mentioned anywhere besides edmunds

Trying to find something that has good rebates so far found the compass with 2500 cash allowance

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It appears that license fees and dealer doc fees are not taxable in Hawaii…

Hawaii Sales Tax Handbook

It seems that they are treated separately from sales tax. If this is correct, then why did Honda levy sales tax on the 271.15 base payment which captures both the license fee and doc. fee?

double dipping

Well, apparently, Hawaii is receiving sales tax revenue for which they’re not entitled to receive. It’s not Hawaii’s fault. I would blame Honda or the dealership. Perhaps the dealer isn’t using the lease software correctly…
I have other issues with Honda finance.