Are all factory incentives treated as capital cost reduction on a lease or can they sometimes just be applied directly to purchase price?
Do states tax the incentives when they are capital cost reduction?
Specifically thinking about Chrysler capital here, but curious it treated differently, thx.
Depends on the state and brand.
Ex in CA Hyundai rebates are taxed as a CCR, a Volvo its off the purchase price and not taxed
Some incentives are “trunk money” or directly to the dealer. They lower the selling price and are not broken down on the contract.
Customer-facing incentives are line items and go toward CCR or DAS.
Some do, some don’t. Which state do you live in? That’s much more relevant than trying to understand all 50.