Dealer "Eats" Tax on monthly payment?

Hello all. I am midway through negotiations on a new Honda lease and the finance manager reached out to offer the lease at 36 tax free monthly payments by the dealership “eating the tax.” Is anyone familiar with this? How does this typically impact me as the buyer and are there any negative ramifications from accepting something like this?

Some states have tax credits (texas) otherwise they simply discount the car by the amount of the tax. No escaping the tax.

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They’re rolling in the tax in your monthly and calling it tax free. Also as James said, might be discount the car by X amount to offset the tax.

That makes sense. I suspect they are truly selling me the vehicle at full MSRP then and discounting the amount of the tax.

Your best bet is to ignore any rhetoric about how they’re getting to the numbers you’re at. Evaluate the numbers as they are and compare the deal. It’s not your problem how they get there.

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Wow, well written!