No, nothing to do with out of state, the disposition and purchase option fees are not charged up front.
On a MBFS lease the dispo fee is charged if/when you just turn in your lease at the end, and the purchase option fee is charged if you buyout your lease.
If you just asked for a “fee breakdown” then I suppose it’s possible the dealer sent you a list of all possible fees, not necessarily the ones due upfront. I would double check the math.
This is just a nonsensical spit out of the software that’s supposed to populate the contract
GIGO
What’s important is your DAS & monthly payment number. If those two fit your target, who cares what they charge for doc & dealer fee.
On an out of state lease, given the varying taxation rules from state to state, if I am overcharged on taxes, is there a way to recover the overpayment?
Generally speaking, if you are overcharged taxes or government fees you can get a refund.
This can be as easy as the dealer refunding you $75 for getting the registration
fees wrong, or as hard as them having to completely redo the contract because they charged 6% tax on the sales price instead of the monthly payment amount, etc.
Especially if you’re shopping out of state, I would highly recommend doing your homework and knowing exactly how your local taxes are calculated and how much they should be. Work with the dealer to make sure the taxes are correct before you sign. Much easier than trying to get things fixed after the fact.
Feedback and thoughts on lease contact please, thanks!
MSRP 85,650
Selling price 67,799
Rebates/incentives 13k
MF .00171
36/10
Maryland taxes 6%
Demo mileage 3,208
Zero DAS
Shouldn’t the gross cap cost be the selling price 69,799?
Per the calculator, I get $634/mo, whereas the contract shows $648.77/mo due.
In the contract, tax is applied to the gross cap cost, whereas in the calc, tax is applied to the adjusted cap cost. Which is correct?
No. The Sell price is the agreed upon value which is 73,822.51. Therefore, your sales tax is…
6.00% x 73822.51 = 4429.35
Some of your LH calc inputs are inaccurate. For example, the sell price is 73822.51, not 67792. Also, you checked the zero drive-off box. You do not have a zero drive-off lease. Your DAS = 6024.62. See Sections 5(a) & (b) in your lease contract. The 13000 rebate is not a taxed incentive.
Your payment is calculated as follows…
.00171 x (61917.51 + 45152.90) + (61917.51 - 45152.90) / 36 = 648.77
Neither is correct. It is the sell price that is taxed.
BTW, the only fee that is capitalized is the Acquistion fee of 1095. All other fees are paid upfront.
Don’t have enough information to comment. I would need to see the dealer’s lease worksheet that is sent to the fund provider along with the lease agreement.
Thank you so much for the broken down explanation. So per my dealing, the agreed upon price is/was 67,797.89 to be exact per their email response below.
There is nothing due out of pocket and I confirmed and reconfirmed this.
What do you think they are doing with the actual structure of the lease?
Thanks again!
They gives free miles and lower your RV. Take it.
According to the email, here is what is happening which conflicts with the lease agreement.
Sell price = 67797.89 Lease contract 73822.51
Capped fees…
acquisition fee = 1095
1st payment = 648.77
sales tax = 4429.35
title fee = 100
license fee = 40.50
registration fee = 207
online registration = 135
Doc fee = 464
Gross Cap = 74917.51
Cap reduction = 13000 … not 6024.62 impossible! See contract
Adj. Cap = 61917.51
The lease contract shows the bolded fees as being paid in cash (6024.62).
Frankly, the email reflects a much better deal! I would ask the dealer to provide a letter stating that you owe nothing upfront. Have you taken delivery of the vehicle yet?
You’re awesome! TY for taking the time for in-depth feedback and insight.
I haven’t taken delivery as I haven’t signed. The dealer is in PA, if that matters.
So per the email numbers input in the calc, monthly comes out to 635/mo
Okay, here is what I have…
Sell Price = 67,797.89
Acq. Fee = 1095.00
1st payment = 637.79
Sales Tax = 4,067.87 = 6.00% x 67,797.89
Title = 100.00
License = 40.50
Reg. = 207.00
Online Reg. = 135.00
Doc Fee = 464.00
Gross Cap = 74,545.05
CCR = 13,000.00
Adj. Cap = 61,545.05
Residual = 45,152.90
MF = .00171
Term = 36
DAS = 0
The dealer may be structuring their deal showing cash due at signing that they are contributing rather than the actual sales price. The way higher sales price and large due at signing while telling you $0 das would suggest that.
What’s the benefit to them?
They may have some internal metrics regarding how much of a loss theyre willing to show, etc
