NJ charges 6.625% tax on the total lease cost. “levied upfront” means you want to pay it at signing. Otherwise, you can choose to defer the tax into your monthly payments. You pay it no matter what !
7.025% because of added luxury tax on anything over $45k (and/or under 19mpg)
Isn’t the .4% luxury tax on the whole vehicle price and not just added to the sales tax?
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No they add luxury tax of 0.4% base on “Selling Price” and then add 7.025% onto “total lease cost”
So you get hit with it twice?
No just once.
Regardless of lease cost.
If selling price is over $45k then they charge 7.025%
If selling price is under $45k they charge 6.625%
Same goes for over/under 19mpg average.
Ahhh luxurious NJ, one of the finest, least expensive places to live in the country!!
Thanks for the breakdown. For a flip, does it make more sense to pay tax upfront? Im assuming id be paying rent charge on tax rolled into monthly payments
Once it’s capitalized, the dollar doesn’t know if it came from tax or depreciation or what. You’ll pay rent charge on anything capitalized. If you’re flipping it, you won’t be holding it long enough to pay much rent charge (rent charge is levied monthly), so it really doesn’t make a huge difference.
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Interesting. I haven’t seen that before, and I cant recall any broker ever quoting that in pricing
For NJ I use 6.625% tax and then add .4% of the selling price to the Gov Fees.
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@LeaN69 sometimes brokers use 7.025% to cover the .4% luxury tax. This tends to be accurate until you get to $90k plus cars.
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@mllcb42 and @DistrictCars have it correct. It is a separate line item and applies to a different amount than the standard tax. Standard tax is on depreciation + rent + non-gov fees. The lux tax is on the selling price.
But, even for my TRX, we’re talking $72k x .004 = $288. Nothing frightening.
But, all in all, correct tax is $2109.88 ([27.5k x .06625] + $288)
If it were 7.025% on the $27.5k, it would be only $1931.88
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Why wouldn’t you ask JC too much? It’s not like they will punish you for it - or move your build to the “back of the line” because you’re asking for updates. They’re merely client/customer representatives, I don’t think asking them for an update would implicate any progression or regression on a build.
Is acquisition fee amount something you can debate/argue? I picked my jeep up last month and it was $595 - my wife’s is in transit now and they are saying its $895 (same dealer) - we have identical income and credit score within a few points of each other (upper 700s)
Makes sense, thats why I was always off few $ in my calculations 
No, its set by the bank and subject to change with program updates
By all accounts, CCAP charges whatever they set it at and the dealer has absolutely no say/control.
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No CCAP is coming back with different ACQ fees on approvals recently. This is regardless of what the programs say.