DEAL CHECK: MDX trade in with a ZDX

Ask the Hackrs
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1

Hello Hackrs,

It has been great to be in this community. I have 2025 MDX Acura Tech SH-AWD (Leased in Sept '24) with a payout of 49K. After working with multiple dealers this is what i have been offered;

This is my attempt at the calculator

Roughly its 450 a month for 36 Months/10K after zero equity trade in and tax adjustment in MD ( As per MD law). (Only first payment DAS)

Wanted to see if this looks fair and nice? I can do one down but i ve learnt here in these forums not to put anything upfront.

3

Your calc shows $0 DAS and $2k trade-in equity, but you say first payment DAS and zero equity. Also, I guess one pay lowers the MF by 0.0008 if you consider it.

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4

$1K down or one pay?

It’s not that putting any amt as a down payment is bad, it’s more that it’s important to remember the down payment is part of your total lease cost and that a huge down payment may not be a great idea b/c it is lost, if the car is totaled (so depends on your risk tolerance b/c totaling a car doesn’t happen that often).

5

So I don’t see where you are paying tax on difference between new car and trade in. You should owe about $1800 on the difference plus the taxed incentives. Maybe the trade equity is eating up the taxes?

6

So the dealer is using my trade to settle payoff and any taxes (In MD Taxes can be adjusted if trading in). Thats what i understand.

Essentially the deal is give us your MDX @ Payout value, It will take care of the tax because state laws, and we will give you the ZDX for 450 (DAS is first payment of 450 only)

7

One Down payment to make it cheaper but i am concerned doing it can be a bad choice if the car gets totalled. You never know but i am in Maryland and drivers aint that great.

8

are you talking about one pay? from my understanding if the car gets totaled they would return your money

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9

Yes One pay, my bad. Oh that would be nice, i should ask the dealership because i heard Acura doesnt.

10

Dealerships are usually clueless as to what the lease terms say. I wouldn’t put any faith in any answer they give you.

You need to see the lease contract terms. Nothing else matters.

11

Have you gotten multiple quotes for your MDX?

12

Mostly Acura dealers and they all try to take it in for the payoff value, some have been under buy mostly around it.

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also to point out, i think your missing the $2300 regional captive lease cash in your calculator, when i add that it brings the payment down to 408/month

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Most MD dealers will offer 6% less than market value to take advantage of you knowing there is a 6% tax savings on trade ins. It sounds like they are trying to do it here to some extent by offering less than KBB value. I think you can push for a larger discount and/or a little more in trade. Offer them your MDX and $400 a month.

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15

How would the tax work in Maryland with this scenario. I am trading in a car I have only paid 8k towards, is valued at 50k and payoff is for 46.5

Any idea?

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I think if your trade is worth $50k, then you get a $50k reduction in sales tax applicable to the new vehicle (which I believe is approximately the taxable cost of the ZDX as some discounts are taxable and some are not taxable). Although you may have only made $8k in payments on the MDX, you paid full sales tax on the MDX and therefore should get a full sales tax credit for its current value against your new purchase (ZDX).

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