That’s the line item called “Capitalized Cost Reduction” aka CCR
Looks like $500 in incentives which were probably untaxed
Acq fee is probably in the delta between sales price and gross cap cost
Thanks Max_g
I’m still a bit off but getting closer.
My statement lists a sales/Use Tax of 21.54? Why is this so high?
Anything else I’m missing?
Is your tax rate 8.75%? Some areas have a tax rate that isn’t as cut and dry as what the sales tax rate in the area is.
PA sales tax on leases is higher IIRC. It should be 9%.
You also have your DAS $500 higher in the calculator than in the actual lease. Take $500 off the down payment because that is coming from the rebate. (Also post a calculator link so others can tinker with it)
Unless in Allegheny county, it’s 10%. Philadelphia county is 11%. Rest of state is 9%
Tax is based on garaged address too. Some people think going to a lower taxed county will save them, and they are incorrect.
Thank you all,
Looks like I have the calculator close now.
The car has been good but was it a good lease?
Is there an area I should have tried to do better?
Next time ask for a $0 due at signing lease to minimize your up front costs. Using your calculator link, that would have put you at $330/mo with tax included. Not the worst deal, but there is/was room for improvement considering this was a car with a $25k msrp. Check Carvana/Vroom to see if they could buy your car out for more than your payoff amount. Not a likely scenario, but you never know.
What kind of car are you looking for next, and how much time do you have to locate your next deal?
My lease is up on Jan 5th 2020. Need to do something between now and then.
Trying to decide if I should buy it out or lease again. The small crossover or SUV is preferred. Like the Hyundai, KIA and Subaru’s.
There is no logic to this. Do first month DAS or first plus DMV
There is definitely logic to doing $0 das in minimizing your risk. How much risk your reducing vs just doing drive offs isn’t huge, but it is some.
Then the logical extension would be to capitalize all the payments and then pay a lump sum at the end.
Capitalizing payments makes absolutely no sense.
If you can’t bear the infinitesimal risk that your first payment might be squandered, you can’t afford to be leasing.
I don’t disagree that it’s a very small risk, but it is also very little effort to do $0 das in most cases. If you can do it with no effort involved other than saying “run the numbers with $0 das,” why not do so?
I personally don’t mind paying my taxes and fees up front. The risk as we all agree on is fairly minute, sometimes it is a mental thing having a slightly lower number, and if I do a good enough job on the hack, I can recoup that money should I want to swap out.
If you can avoid unnecessary finance charges throughout your lifetime, why wouldn’t you?
If you can avoid incurring tax on otherwise non-taxable items, why wouldn’t you?
A little searching around would have probably found you a detailed thread on this topic. In fact, @chrishs2000 did a great job detailing a lease document and providing all the descriptions in the borders. You can find his post here;
Finance charges, sure. Depending on the lease that can vary from next to nothing to a lot.
At least here, you’re paying taxes on the amount one way or the other.
Thanks CaptQ,
I read the guide several times. It was very helpful but I still had trouble with the items I listed. Thanks to the quick responses, I believe it makes sense to me now and I have the calculator really close.
When it comes to financial terms I tend to be a bit slower than most…
DMV fees generally aren’t taxed when paid upfront. But when it’s rolled into the payment it’s effectively taxed.