NY Early Buyout Strategy

I would prefer to do a regular old fashioned lease, but with high interest rates and large rebates it might make more sense to do an early buyout one month in, I want to determine the best srategy for it.

Using a buyout formula of:
Adjusted Cap Cost - first payment + tax on the residual amount

As it pertains to someone in NY:

  1. negotiate for the lowest ACC
  2. do I care about the high money factor if I am buying it out right away? I guess NY has a tax on the total lease, so the lower the MF, the lower tax burden. But a lower cap cost prob goes further than lowering the MF?
  3. do I care about mileage or term? Longer term and more mileage equals lower residual so that might be beneficial for the tax bill on the back end?
  4. a few people have suggested to do a one-pay would be beneficial too but I need clarification. Is it just to lower the money factor or is there another benefit that I missed.

It’s to lower your tax liability on the buyout. NY is a tax upfront state and then taxes on the buyout amount, so if you do a one pay, your buyout is much lower, so your sales tax is a lot lower. No need to pay double tax on some of the value of the vehicle.

Beyond that, you want the lowest ACC you can get and target a lease term that has the lowest money factor so you have the lowest lease cost relative to how much depreciation is paid.

NY has very specific rules about MSDs, do they allow 1 pay?

Edit, I should’ve searched, it’s allowed