MSRP: 67,000
Selling price 55000
Rebates : 3000
On straight buy:
Now pay taxes on $67K @6.5%
or pay taxes in $55K @6.5%
I guess you have to pay taxes on the rebates. So I am not listing it…
On Lease
MSRP : 67,000
Selling :55000
Rebates: 3000
Residual 61%
2
How to calculate taxes on this… dealer quoted $820 MF0.0206
Why do you want to calculate the taxes? Wouldn’t it make more sense to be able to calculate the lease? Have you looked at the calculator?
On a purchase, you pay tax on the selling price, not the MSRP. On leasing, it depends on the state you live in.
I am in Illinois… So on the lease it is on the MSRP then ?
Yes I did look at the calculator and numbers are whole lot off…
Illinois taxes the sum of the base payments plus, levies tax on cash cap reductions as well as rebates. I’m assuming all taxable fees (e.g., acquisition fee, dealer doc fee) are capped in the base payment. Your money factor doesn’t look right. Are you sure it isn’t 0.00206?
You have a lot of information missing (e.g., adjusted cap cost, cap reductions, acquisition fee, doc fee, term). What fees are you capping in the lease? What is the total cap reduction, if any? What fees are you paying upfront?