Lease Question/ Taxes


If I’m receiving $7500 in rebates on a vehicle and the MSRP is $42,130, with the selling price being $39,030. What should the selling price be? Also are these rebates taxed. Zip Code 14220. Thank you

You’ll have better luck if you provide more information. Is $39030 the pre-incentive selling price? Are they applying the $7500 rebate as a cap cost reduction? Tell us what the actual deal is and we can help.

I had the wrong selling price. Attached is the lease quote. Thanks for any help.

They’re only giving you $1500 off sticker. There should be a lot more room to negotiate here.

But to answer your question, they’re applying the rebates as cap cost reduction/paying for your negative equity on your trade in. It doesn’t reduce the sales price, so you are paying taxes on the rebate amount.

Are the rebates discounted on the vehicle correctly? Or did they fudge the numbers? Thanks for responding

Edit: I take that back, I’m wrong. They’re splitting the rebate into cap cost reduction and drive off. Yes, they’re showing $7500 in rebates.

I’m not going to do the trade in with this sale. I only have 1 month left on my current lease, so it’s pointless. What amount should I try for as a selling price? Any other tips you can give I’d appreciate. Thanks again

Best bet is to search through here at other grand Cherokee leases to compare pre-incentive discounts. I would expect a lot more than $1500 off on a new $40+k FCA product, but I’m not sure what the right number is for a GC.