Here is the calculator with all the details: Calculator
MSRP $63,860
Sale Price $52,269
Discount $11,591 18.2%
Incentive $7,500
Loyalty $2,000
Residual 53% 12,000 miles for 36 months
Demo miles 9316
Cost with 6 MSD $471
Cost with no MSD $500
Please let me know what you think. This is my first time leasing a vehicle.
Sounds fine. The discount or dealer contribution here however is actually closer to 20% since $1,000 of that loyalty rebate is actuality coming from them
Texas taxes suck. That’s i5 loaner money in CA - consider either lease assumption or Rent-a-Hackr™ where you’d get credit from TX for taxes paid to another state (CA is higher). The downside is having to wait for CA DMV to go thru their motions.
On a lease assumption?
Question: If CA sales tax = $500, when I register in Texas they are still going to make me pay the 6.25% (minus $500 CA payment credit). On lease assumption, does this work differently?
Is the difference that sale prices are lower in CA?
I would love to understand this better how to work this (even if not for this transaction).
Full disclaimer: I am not an expert on TX but rather based the above statement on what a potential transferee from TX told me. He claimed that he had done multiple lease assumptions from California where the tax rate always exceeds his local tax rate of either 6.5 or 6.75%(?) which he said was the key to getting tax credit from Texas. I suggest you confirm this with your state’s comptrollers office to be 100% certain.
One thing is for sure: California prices almost always beat Texas prices. Yes, you’re looking at an additional ~1500 between transfer and shipping but it might be worth it if you can save more.
Looks pretty solid. Not sure I would justify the MSD money out of pocket for just saving $29/mo, but that’s your call. Discount is good…If it’s fairly early in the negotiation process, I would get that to 21-22% based on the demo miles being nearly 10K. How are the tires? And, does the factory warranty stop at 36K?
Tires are not bad but I will have to replace them in the 3 years for sure.
Factory warranty is 4 years or 50k. The free maintenance is 3 years or 36K. I will have to pay for at least one service.
I am picking up the car later today.
Do the math…it is an 11.6% ROI without taxation. We can also do 10 MSDs here in CA now.
I’m with ya….just not sure if that cash is more valuable in my bank account vs being tied up in a 3 year lease that I get back at the end. Can’t argue with the ROI though!
OP - Sorry, I meant the free maintenance, so yep, looks like you’ve factored in handling a little bit of out of pocket service expense.
Congrats – post a picture!
Exactly - that’s tax-free guaranteed return. Even better if you do it on a credit card with no processing fees.
I say 20% should be bare minimum given higher miles, 25% could be realistic, at least here in California.
It’s only 3000 bucks!
Genuine question: how come? Is it b/c you’re “keeping” your cash available and/or potentially earning credit-card rewards?
Yes, I know some folks make 2% to 5% on credit card rewards and then redeem it for even greater value.
TBH, not sure what you’re asking so I’ll just explain where I’m coming from on this. MSDs will earn you about 12% tax-free guaranteed annual return and putting them on a credit card will earn you at least 1 or 2% either in rebates, miles or points. If planned ahead, there is a possibility to earn either a bonus and/or 12 to 18 months at 0% interest.
Compare that to measly returns at regular banks or higher returns with money market funds that would still be 1/3 of this plus it would be taxable.