The total tax of 5431.91 is way off and is much too high. This is what happens when an out of state dealer calculates taxes for another state… they have no clue! Also, in a one-pay, it is not necessary to capitalize fees. Why on earth would they cap sales tax!? Structuring a lease properly means everything and is your responsibility to know how it should be done as well as how to perform the calculations. The 1825 lease protect sounds like a lot of bs to me.
You’re allowing the dealer to control the deal. You need to take control. Are you absolutely sure that the sales tax rate is 9.00%?
BTW, the MF = .00164 which is what the dealer used.
Below is how I would structure the lease…
Use the 7500 rebate as a cap reduction…
Gross Cap 64478.00 (sell price)
CCR 7500.00
Adj. Cap 56978.00
RV 45152.85
MF .00164
Term 36
Sales tax rate 9.00%
Base Pay = .00164 x (56978.00 + 45152.85) + (56978.00 - 45152.85)/36
= 495.97
One-Pay = 36 x 495.97
= 17854.92
Upfront Charges
One-Pay 17854.92
One-Pay Tax 1606.94
CCR Tax 675.00
ACQ Fee 1095.00
ACQ Tax 98.55
Doc Fee 200.00
Doc Tax 18.00
Title 165.00
License 251.00
DAS 21964.41
I did not include the 1825 bs fee. If you want it, add it but don’t forget the tax.
Your DAS is 21964.41 and your one-pay is 17854.92. Don’t let some a-hole tell you differently. The One-pay amount must be dead on accurate as it is used to compute future lease balances in the event you wish to buy or trade the vehicle. As you can see, your total tax is 2398. 49… a far cry from 5431.91.
If I were you, I would craft a lease proposal (example below which is drastically different than yours)) and email it to the sales manager (SM), not a floor salesperson as they’re often order takers and lack knowledge.
All numbers should be accurate otherwise, you’ll lose credibility. Negotiate via phone/email. Once an agreement is reached, ask the dealer for a review copy of the lease agreement and all contract addenda BEFORE you go to the dealer and sign. Moreover, it’s helpful to know the terms and conditions of the lease contract such as early termination liability criteria and purchase option criteria as well as lease amortization methodology and excess wear/tear criteria. If all is as agreed, tell the SM that you’ll come in to sign right away. You don’t want any surprises or dealer excuses like …. Oh, we made a mistake. That’s unacceptable and shouldn’t be tolerated.
If the dealer isn’t transparent or is uncooperative or showing signs of incompetence, WALK AWAY AND MOVE ON!
Leasing is time-consuming and requires a good deal of study and attention to detail. If you don’t have the time to commit, perhaps your best alternative is a good broker. There are some outstanding brokers on this website. However, if you’re willing to commit your time and resources, always control the deal. That can only be achieved with education which breeds confidence and increases the likelihood of success.
??? Let me know.
