Hi all. Please let me know what you think about the below lease deal on a base AWD 2019 RDX.
Numbers below include sales tax in monthly payments, however, if I want to pay all sales tax up front (8.625% in NY), should the calculation be:
all monthly payments multiplied by tax rate (i.e., 436.05 * 36 * 8.625%);
or should it be cap cost minus residual multiplied by tax rate (i.e., 34,555 - 23,833) * 8.625%?
Plug the numbers into the lease calculator and select the last option (tax due up front) and it will give you the exact number. That being said, you don’t want to put more than that down on a lease. Overall looks pretty good. The new model isn’t yet leasing well. That could change soon since the 2020’s are hitting the lots. My mom has an RDX tech and pays $550 + $2500 DAS for comparison… She wouldn’t take my help on the deal or she’d be paying less. So it goes.
Thanks. I can’t seem to get the calculator to match the numbers above. Any idea what I’m doing wrong? Also, just for my own information, I would like to know how dealer calculates tax if being paid upfront: all monthly payments multiplied by tax rate (i.e., 436.05 * 36 * 8.625%); or cap cost minus residual multiplied by tax rate (i.e., 34,555 - 23,833) * 8.625%?
Tax varies based on the state. In NY it is on the whole lease payment, not just the monthlies or the cap - residual. If you did a cap cost reduction that is also taxable, as are most fees and incentives. Here is a nice summary:
Sales tax is computed on the sum of all lease payments at the usual rate in the county. Additionally, sales tax applies to any down payment, the lease acquisition fee, documentation fees, warranty fees, maintenance fees (if charged), transportation and destinations fees, dealer advertising fees, dealer prep fees — literally everything in the lease contract. Furthermore, taxes are charged on any manufacturer rebates, bonuses, or other incentives.
To add insult to injury, NY sales taxes also apply to any lease-end fees, if any, such as a disposition fee, excessive mileage charges, excessive wear-and-tear fees, purchase option fee, and lease transfer fees.
The only fees not subject to tax in NY are those official fees that are already a form of tax, such as DMV tag, registration, and title fees.
