MSRP 116000
Pre-Incentive: 98600
Incentives 26000
7500/12
TTL, Doc, Acquistion all rolled in.
I really couldn’t make sense of all the taxes and the negative depreciation, but somehow we’re here. I know that the MF is marked up, but the discount is pretty steep along with the credits. Any other thoughts?
About to send the credit app.
you could add 1% to your RV by opting Audi Care for $1249
put your numbers in the calculator and see what you get
push for base MF
what rebates contributed to the $26k?
If you’ve actually managed to get an 8k one pay in New York you should take it and run.
Normally the taxes kill the deal but since you’ve gotten so much money off to get it into negative depreciation, you’re using the taxes to make up for it, which is saving the deal
AC is $899. This is solid, but never hurts to make 1 final counter. If they say no, sign it if you like the car.
Okay, here is how this one-pay lease shakes out…
There is no negative depreciation; otherwise, the lease would not fund. …Your base payment is …
2582.17 = .00292 x (102454.25 + 77783.65) + (102454.25 - 77783.65)/12
Your one pay payment = 12 x 2582.17 + 3098.64 - 26000 = 8064.68
Sales tax rate = 10.00%
12 X 2582.17 x 10% = 3098.64 Tax
Your capitalized cost of 98680.75 is the sell price. The discount = 17414.25 or 15% off MSRP. Coupled with a 26,000 rebate doesn’t seem bad. Is the discount a true dealer discount? Does it include incentives like a manufacturer to dealer incentive or any other rebate/incentive? Next, you have a total owed of 1997 plus an additional capitalized cost of 1776.50. I would get a break down of both fees. Are those fees taxable? The two fees are being capitalized and, therefore, taxed as they are captured in the base payment upon which, tax is levied. If any of the embedded fees are non-taxable, I would pay them upfront which would save you some money.
EDIT: Money factor seems steep for a one-pay (about 7%)
One other thing… As far as I can see, you only owe the one pay at lease inception. The first payment due at start is already included in the one-pay. Also, you should pay both fees discussed above upfront to save money (finance charge). It doesn’t make any sense to cap those fees if you’re doing a one-pay. If you do so, then your adj cap = 98680.75… same as sell price . and NO negative amortization… your residual is 77,783.65… a long way from 98,680.75.
10% sales tax rate? But my tax rate is supposed to be 8.875%\
$1997 owed, I’m not sure what that is about either.
$1776.50 are dealer addons
They really won’t budge on the MF for some reason. I’ve asked multiple times.
Sure looks that way on two counts…
2582.17 x 1.10 = 2840.39
and
12 x 2582.17 x 10% = 3098.60 close enough.
I thought the NY tax rate was 8.875% as well. Then, I thought that perhaps there are exceptions. Maybe the dealer screwed up. Their worksheet leaves much to be desired. It’s sloppy.
Oh yes, and the initial cap cost $98680 is before any of the credits were applied.
However, I saw that they added $699 + $699 + $499 in the dealer options such as dent protection, interior protection, and window film.
That totals 1897. I’m seeing 1997. Where is the other 100? Dealer needs to itemize all fees.
Then again, I have no idea where the additional $1776.50 is from as well.
Ask the dealer to itemize it.
I will, but I think it is the Acq Fee, Doc Fee, and DMV.
Also, based on the gist of what I read. You’re telling me that I don’t have to capitalize those fees?
@delta737h there is no point in driving yourself crazy to make sense of this one pay deal, New York taxation rules are extremely complicated, if you cap taxes they get taxed, and in this case you’re capping over 2.1k in rebate taxes and then the taxes owed on the final one pay which are also then technically taxed.
I ran this deal backwards in a calc, the only way you get there with NYS tax is around 12-13% off with that money factor. OP has a very solid deal and he shouldn’t potentially lose it to over analyzing it. I’m sure others are already trying to find this car based on the MSRP.
I think the help you provide is amazing, for the record, but my professional advice from the other side is that the one pay math in NY especially is complex and many dealer systems don’t even accurately represent it.
It’s not shocking his tax rate looks like an effective 10% when there’s double taxation happening.
Oh yes, without a doubt.
Absolutely! Pay them upfront and you will also lower your one-pay payment…
Base pay = .00292 x (98680.75 + 77783.65) + (98680.75 - 77783.65)/12
= 2256.70
one pay = 12 x 2256.70 + 2708.04 - 26000
= 3788.44
The 2708.04 is sales tax @10% levied on 12 x 2256.70.
So, you would owe upfront, assuming no tax on those two additional fees or, any portion thereof…
3788.44 + 1997 + 1776.50 = 7561.94 for a savings of 522.74 (8084.68 - 7561.94).
You’re saving some tax and interest. The only unknown is how much, if any, of the 1997 and 1776.50 is taxable. The amount due would increase by the amount of that tax.
Stop worrying about this, worry about the deal as a whole.
They need to make money somewhere to justify the deal.
Thanks everyone! Hoping for a good day tomorrow.
BTW . Did you check the insurance premium for this beast?
I hope You did.
Have a good night.
Yes, $1200 for 6 months.
