Texas has 6.25% tax on selling price for leases as well! To push sales or meet targets dealership/banks will have some limited tax credits which they can apply
In my case it was 1.25% on SP as it was through US bank…
Wrong information on pushing the sales goal for dealership as some Toyota dealerships don’t have US Bank and Ally as their lessor banks, but correct on the “Limited” part
Less than $500
I am not sure if it was just US bank tax credit which made this deal happen as dealership was doing $7.2k off of MSRP too… the reality with leases is that more than banks, “dealership” will make more money as compared to finance or outright selling… reasons below
- Profit is not based on SP rather gross capitalized cost(that’s why you don’t see selling price in the lease contract)
- GAP insurance - almost a mandatory now
- Extended warranty
what I learnt over the period of 2-3 years getting these kind of deals for myself and friends & family is about “timing”. Also, it’s a “myth” that deals are available only during month end or year end.
Here are my previous deals which is got not during month end nor during year end
Toyota Corolla 2021 (purchase) - $15800 without TTL
Toyota RAV4 2018 (lease) - $210 per month $0 down 36/15… sold this to a private party for a $1.2k positive equity
2019 BMW X3(lease) $295 $0 down 36/15
Toyota Corolla 2021 (lease) -
2021 BMW X3(purchase) - 25% off of MSRP including rebates…
I’ve never seen a lease contract that didn’t have the selling price listed on it. It’s listed on the break down of the capitalized cost as “agreed on vehicle value” or something to that extent.
Also, most lease brands include gap coverage as part of their standard lease contract. Toyota being the main exception.
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You do see a selling price on the lease contract! It’s on the purchase agreement page
Thanks a lot.
A lot of credit goes to this forum which taught lease concepts very well!!
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Ha ha! I am referring to dealer margin/profits which is based of Gross capitalized cost not selling price!!
Hence, the lease deals are more favorable to dealership rather than banks… most cases!!
The rule of thumb for a buyer is never hesitate to negotiate on lease deals… I always make sure to talk to finance/bank representative before giving for credit check!
An auto lease involves a sale (by the dealer) to the buyer (the bank). What kinda lease contract doesn’t state the selling price AKA agreed-upon value?
Okay, so I have a question.
USBank supposedly have an MRM (Maximum Residualized MSRP) Cap.
How did that dealer work this?
MSRP is not $43,550.00, it is at $42,100.00.
I get the discount and MF and RV is right, it seems.
I am just raising a red flag because USBank has that cap and I am just bewildered on how the dealership did this.
Would probably help if he hadn’t cut the posted contract off where it shows all the important information.
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Red flag on what?
Stop wasting everyone’s time with these stupid cropped photos. Either show everything except personal info, or don’t.
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Contract appears to show 58% RV and .0007 MF (assuming I have the correct rows since the picture has all the information that states which number is which cut off)
Sorry… I am unable to send a full page from my phone(not sure if it’s a size issue)
Working on getting through a scanner. Thanks
Ok, so selling price is $37076.47, not $36624
RV from the contract is 58% if the MSRP is $43550, MF is .0007
Thanks a lot. Updated the post… the RV is slightly higher 58.8% ($25610)
LeaseHacker score - 10.3