Hi Everyone,
Had a few questions - My lease payment calculated on leasehackr was quite a ways off compared to my dealer sheet and I’m just not quite sure how NJ tax on leases is calculated. I spent a ton of time looking through the existing topic and there didn’t seem to be a consensus.
Details:
36m/10k miles
MSRP: 32832
Sale Price: 30186
MF: 00303
Residual value - 22654.08
Govt fees: 557.5
Proc/Doc: 500
Accessory: 200
Aquisition: 650
Capitalized Taxes: 1042.95
Gross Cap cost: 33,507.09.
Cap cost reduction:
Lease Trade in equity (as downpayment) - 3680
So they have a capitalized tax line of $1042.95, which seems very high to me and I cant for the life of me get the numbers to match up.
They are showing $389 /m and I’m at $354 using the leasehackr calculator.
Well if their payment is at 389, 389*36 = 14,004*.06625=$927, figure acq and proc doc are taxed that’s another 89 now we’re at 1,016 which isn’t far off. Are there rebates? Those are taxable in NJ.
Don’t worry so much about all of their little calculations. Worry about your target deal, make sure you MF and residual are right, come up with a reasonable target deal, and keep negotiating until you get there or you feel you hit bottom.
I also would probably take that equity in cash or use it for MSD’s if offered.
I’m guessing you’re assuming buyrate MF and that’s not what they’re using.
And even if they agreed to the deal in your calculator why would you take it? $16,439 total lease cost for a car costing $30k? In two leases you’ll make payments exceeding the selling price of the car.
I will verify the MF they’re using shortly. Its not listed on the workup but I’ve worked with them in the past and they’ve always used national rates.
In terms of why… Its more just managing the monthly payment for a bit and then likely purchasing at lease end. I make good money, but kids are expensive so i’m trying to keep costs low for a few more years. I also have a 401k and consolidation loan coming off the books in the next year. So I’m just being careful.
Smart money would be to finance it over 48 months because they’re offering a national rate of 1.9% but I’m not sure thats feasible right this second.
Oh for sure, I always worry about sale price first, which is solid so far @ 7+% under msrp. but $50 a month difference is somewhat significant when I’ve historically been pretty close to using this calculator.
Used car loans are exorbitant compared to the 1.9 you could get now.
Someone will mention $1,9xx sales tax on a purchase but keep in mind the “lease to own” lifecycle involves the $1k tax now + $650 acq fee + roughly $1k tax on the RV at lease end + $~400 for a second round of reg/title in your name.
Admittedly being caught between a rock and a hard place isn’t a good place to be, but most people here don’t want you to be in a worse position three years from now, looking at a much higher APR to finance the buyout and/or the RV being much higher than what the remaining balance would have been on the 1.9 loan.
Posting the dealer’s worksheet would be very helpful. NJ levies sales tax on the sum of the base payments plus taxable DAS fees and CCR rebates. Cash CCR’s would be included with taxable DAS fees.
I’ll need more info than what is provided in your post. Need to see documented data. How is the lease structured? What are the capitalized costs (itemized). DAS itemized? Sales tax rate?
No idea how the lease is structured. Every number on the workup is listed in my 1st post and the follow ups. sales tax in NJ is 6.625. Total gross cap cost is 33507.09. So tax definitely went into that.
DAS is literally just 1st month payment.
Not much I can do. You’re not sure of the MF and you have a total of 3321.09 in capped fees according to your data. I need an exact breakdown of those fees and whether there is a cap reduction to get to the adjusted cap. Doesn’t appear to be a cap reduction according to your LH calc. Why does your LH calc show positive trade equity of 3680? I thought you said it is -3680. Apparently, you’re not capping the negative equity. I need exact numbers, not estimates or ballpark. For example, a payment of 389 to me means 389.00. Your data is sketchy and, perhaps, inaccurate (e.g., you don’t seem sure about the .00303 MF). You said…
Have you done that? Furthermore, you’re chasing after the dealer trying to work with their numbers. Bad idea. Do your research and create a target deal as well as a professional-looking knock 'em dead one-page lease proposal like the one below.
All data and calculations must be spot on. The proposal is designed to get the attention of the SM or GM. And it always does. Don’t waste your time with floor salespeople. Get to the decision maker. I’ve created just south of 2000 lease proposals over the last 28 years or so and have had a success rate well in excess of 90%. It works! Yes, all of them needed some tweaking which was done via email/phone. I never negotiate inside a dealership. I ask for their dealer worksheet and a copy of the completed lease agreement once a deal has been agreed upon. I do this to ensure that there are no mistakes before going to the dealer to sign docs and collect the keys. In lieu of a lease proposal, I suppose I could just give them my bottom line like DAS = 0 followed by 38 payments of 523.00 each (39-month lease). But that opens the door to questions such as how I arrived at that payment. Then I have to tell them that it doesn’t matter. The only thing that matters is whether they can do the deal. And now, let the games begin. Better to lay all the cards on the table upfront and be completely transparent.
They verified they’re using .00303 and a residual of 69%.
I’m not sure what other numbers you need. I’ve provided all fees. The gross capitalized tax #. and my 1 and only cap cost reduction (the trade in equity).
I don’t think it’s negative equity, he is just using - as a delimiter. I read it as positive equity he is carrying into the deal. Is the trade in presently owned/financed or leased? NJ permits tax offset on trade-in, but not for lease buyouts.
