Hi, I am considering doing a new lease. I was looking back at the lease I signed three years ago and I need some help understanding it (I didn’t do my homework enough).
Could anyone help take a look at this lease and see if everything was as they promised? The agreement was 10% off on a MSRP $59,215 car, residual at 61%, incentive/rebates was $4,000 ($1k college grad + $3k holiday) and base MF at 0.00152. With that said, I ended up paying $616/month for 10/36. I am in Delaware.
I see the selling price is correct at 53,200 (10% off). But the capital cost reduction is not $4616, but $1,713.05. There is a sales/use tax of 2,261.00. Based on my research, it seems that is b/c lease tax in DE is 4.25% on sales price and 2% on monthly payments, and the capitalized cost reduction is decreased because of this sales tax. If this is true, then I am basically paying ~$100 on taxes each month, making a good deal on a lease almost impossible.
Could you check if my understanding of the numbers is correct and the dealer was honest about their promise? I am considering what I should do next, given this tax on sales price, I don’t know if leasing still makes sense, but I don’t know better options to my knowledge.
Any thoughts would be appreciated. Thanks.