Ask them for the clarification. I dont know the sales tax rules for CA, but in FL, whenever we sell a leased car to a dealer, then there is no sales tax. Because dealers do use their exempt license to buy it out from the leasing company.
Yes, it seems very decent deal.
If you can, then get more offers for the trade-in, and then use those numbers to get more money for the trade-in.
I’m trying to learn from this so as not to make the same mistake. He would be paying for ~70% of the car over 3 years, and that makes no sense. But what percentage would you say might make sense? Is there a goal?
Welcome! But even without knowing this website why would you think paying $42K for 3 years on a $58K vehicle is worth it? I understand happy wife happy life but that monthly payment is Escalade territory from what I remember. At least now you know about this website.
There is no rule of thumb. For me, on a 36 month lease: no more than half, less is better. But sometimes you are paying all rent (those 93-99% Nissan RVs from earlier this year) and if it’s something that depreciates less than the RV and the MF is very low, % might not matter.
The punchline here is: if you have paid most of the cost of the car by renting it for 3 years, just buy the car.