There’s a REALLY complicated formula but
\$39500 - \$25000 = 14500 / 36 = \$402 Depreciation each month.

then you add the interest / MF which can be \$100-200 additional per month.

Then Add Chicago Tax of \$5,000 (50k * 10%) / 36 = \$138

So now we are at \$640-\$740 before 9% sales tax.

So you will be paying a lot for that car.

PS : I don’t know all the Chicago tax rules, just going by your 10% post.

Dam!! Nice !! Explanation!! Really appreciate this. I just wanted to get a general idea of how it’s all broken down. Thank You.

So you pay taxes on \$50000, Not the Negotiated Price?

Actually it is IL state tax on the lease (total of any down plus rebates plus total of all monthly payments times tax rate) then the City applies another 9% of payment on top. Leasing in the City really makes no fiscal sense with the approximate 18-20% tax rate.

Thanks! gohawks23, I’m right down the street from United Center. Can you give me somewhat easy to understand breakdown with dollar amounts? I totally get 18 to 20% tax rate its Awlful, but If I can get a low enough payment with taxes included, let’s say \$350 a month i can live with that.

I’m more a lead to water guy than do it all for somebody but add up your selling price with any down and rebates and then add payment you have calculated on the LH calc multiplied by your term length then take that total sum and multiply by 9.5% or so and divide by term. Then tack on another 9% of that payment.

Thanks! gohawks23