There is nothing in the dealer’s worksheet that mentions a 2,500 non-taxed incentive which is why I ignored it. If there is, it doesn’t really matter which bin you assign the 2,500 and 7,500 as are both non-taxable. The dealer discount is just that… a discount that only originates from the dealer directly and should excluded any non-dealer incentives and rebates. Incentives and rebates should be itemized separately… rolling it into the discount is a sloppy way to do business even though it really doesn’t make any difference in the outcome. Also, a cap reduction of -619 not only makes the DAS = 1st month’s payment but it also has the unintended consequence of increasing the monthly pay to 584 including tax as the only objective was to eliminate DAS except for the 1st payment. As such, this is also a problem as it does not mirror reality (there is no such thing as a cap reduction of -619 as you know). I think you’re trying to force the calculator to agree with the posted worksheet. In some instances that may be advantageous but it’s also a disadvantage (triggers an unintended increased payment in this case). I still would like to see the lease worksheet.
Sure it does.
Just have to select to capitalize taxes and deselect paying the fees upfront.
Look at the MB deals posted and almost all of them include the fleet discount into the selling price. They only tax the $7500 EV rebate.
Fleet is a direct to dealer incentive, so it doesnt show up on the actual lease contract as an itemized rebate like the $7500 does.
I 100% agree that when filling out a LH calc, one should itemize it as an untaxed incentive and separate it out from the dealer discount for proper comparison of pre-incentive discounts though.
Thought you said if your memory serves you correctly, PA does not tax incentives. To wit…
Because the 7,500 is an EV credit, it shouldn’t be taxed yet, you show it as a taxable incentive in the calculator. Was that just to illustrate a point? It is interesting, though, that your calculated payment is very close to the dealer’s worksheet payment after capping the tax 9% x 7,500 = 675. However, I doubt the dealer taxed the 7,500 EV credit. So, it might be something else that is missing.
The $7500 is not a tax credit.
It’s an incentive. Just like any other normal incentive.
If a state doesnt tax itemized incentives, its untaxed, but still itemized. I have seen some weird exceptions where dealers somehow roll it into the sales price, but it typically is itemized (and taxed in states that tax incentives).
The fleet credit is direct to dealer, so it is captured in the agreed upon selling price. In a state that taxes incentives, it would still be untaxed since it is not itemized and is instead direct to dealer.
Theres the specific implentation in PA part of the conversation and the generic implementation part of the conversation.
I never said the 7,500 EV credit was a tax credit. Because it is a federally subsidized credit (not tax credit), it is non-taxable. How could states tax a federally subsidized credit as it is a federal program… hands off states! What would give them the authority to tax it even if it were itemized as a cap reduction? YIKES!
Thanks for educating me on the fleet credit to the dealer… didn’t realize that. So, now it makes sense that it’s reflected in the agreed upon selling price and, as such, would be untaxed. THANKS!
It is not though, at least not as far as the lease transaction is concerned.
The bank gets a tax credit for purchasing the vehicle.
They then give incentives… or not. The actual tax credit doesn’t apply directly to the lease.
You’re right. My mistake. You also said…
How is this even possible since the 7,500 EV credit is a federally subsidized incentive and, hence, non-taxable. What would give a state the authority to tax a federal subsidized credit even if it’s itemized as a cap reduction?
This is where the nuance of it not applying to the lease comes into play.
Section 45W of the IRA gives the bank a tax credit when they purchase the vehicle. It being used for leasing is what makes it a qualified purchase, but they get a tax credit for their purchase.
They then can, if they choose to do so, provide an equivalent value incentive to the lessee. The actual credit itself is not part of the lease.
Hi guys, your respond is way over my head. To make it easier, where should I put the $7500 ev credit & $2500 amex incentive? Should I put both $10,000 into untaxed incentives? Should I put $7500 ev credit as untaxed incentives & roll $2500 amex incentive into selling price?
Ah, seems like I read that sometime ago but forgot. Thanks again enlightening me.
Btw, I got a good counter offer, the MF is still off though. Still a good deal, but should I point out the MF discrepancies and ask them to re-calculate using what they put on paper.
Ask them for their lease worksheet (the one that they send to the fund provider once it has been finalized) and post it. That would be extremely helpful and will answer lots of questions.
don’t worry about how you did it, those just add together. such as 2500 Untaxed versus taking 2500 off the sales price.
Did they lower the MF back to buy rate yet?
Sorry, I stand corrected.
Just hire a broker and be done with it
Thanks, The mf rate they put in the quote is lower. I have to increase the mf rate on the calculator to get their number. I asked them for their lease worksheet, they keep giving me the same internal document. Even with the wrong mf rate, the deal is still good though. I’m going there to see what’s going on n most likely sign if there’s no surprises.
After accounting for the mf mark up, youre at about 10% off msrp. Thats not that amazing for an eqb when you compare against what brokers can get you.
SIGNED, Thanks all guys. Please see Lease Calculator
Not bad eh for a noob :p. What a whirlwind. I found out this forum 2-3 days ago. I was looking to take advantage of Volvo XC40, Mini EV, and Lexus RZ lease deal. I did not even considered Benz EQB. Taking a look because of some awesome deals found here. I was targeting EQB250+ loaner this dealer had, it’s either fortunate or unfortunate that car was being loaned out for 10 days and they counter offer with this EQB350 and match the 19% off msrp which I ask for the EQB250. I should have asked for more on my opening bid, but hey this number looks good enough for me. Once again, the deal is out there, sometimes you just strike out lucky. This dealer is the 2nd dealer I send out email to. After his initial offer, I sent out emails to dealer in PA, NJ, NY and MD. No one comes close to 19% off msrp. Beginner’s luck I guess. 