Rolling the taxes/fees into the payment won’t make a difference to the MF. You should, however, never assume buy rate MF unless you have it in writing from the dealer that they’re not marking it up.
Thank you both…very helpful
Thoughts on the best way to get the calculator to properly show NY taxes when rolling them in to the monthly?
If you read how to use the calculator, adjust down payment negatively till it cancels out with the taxes box on drive offs. It’s relatively accurate, but can be off slightly.
Thanks for the help… Like this?
Yep, but your mf is wrong, base for January is 0.00086.
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Great thanks for the correction too… I was using one of the brokers Calc link as a template, so I guess that was not updated for the new MF.
Side note,do you also have a 4 month old keeping you up at 4am?? Lol
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Insomniac.
Hi All! I know this is an older thread. Can anyone kindly confirm if in fact that all taxes/fees for a lease (NY resident) MUST be paid upfront? I’ll be leasing the car from an out of state dealer and I’m being told two conflicting statements.
Dealer 1: Taxes/fees MUST be paid upfront.
Dealer 2: Taxes/fees can be rolled into the monthly and do NOT have to be paid upfront.
Thanks!
Taxes are required to be paid upfront for NY customers. You can “roll” them into your payment but it doesn’t change the fact that they need to be paid upfront. When you roll them in, that amount is still paid but (someone correct me if I am wrong) is paid by the lender and then you pay them back + interest. A NY dealer should know how to structure this while many out of state dealers may not.
Haha, I’m all over this thread already as AP919!
Per NYS law, taxes must be paid up-front, BUT you can roll them into the monthly. The way the law is written, it says must, but you have the option to capitalize them. A dealership who won’t let you do that probably doesn’t want to deal with the special NY formula for this and/or is doing something else funky.
Correct; even when you capitalize them, you get a statement that the taxes have been paid up-front on your vehicle. By rolling them in, you mitigate your risk if anything happens to the car down the road, or if you transfer out of it or sell it, then you only paid tax on the time you used, even though it was capitalized into the lease.
Thank you all for the clarification. I was confused at first, but now you’ve laid it out in black & white. I’ll be rolling them in from now on, especially to mitigate my risk down the road. I appreciate the quick responses!
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Hi Again all!
I went back to the dealer equipped with the information you provided. I’m told that since I am purchasing the car in another state (other than NY) I must pay taxes up front so they can then pay the state of NY the taxes owed. Is this accurate?
Tell them to take it out of the discount if they want, it’s all just money, it needs to come from somewhere.
Usually what happens is the taxes are added in as a capitalized line item just like any other add-on would be.
If this deal you’re chasing is totally amazing otherwise, then capitalize everything else and just pay your taxes upfront, it’s not that big of a deal.
Not true at all. I’ve done plenty of $0 at signing leases for NY clients from out of state.
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