oh i see. that number includes the maryland doc fee and honda acq fee
and here is msrp
So ultimately, I think
- I used RateFindr incorrectly, which made me think 299/mo was a better deal than it was
- The dealerâs initial offer basically matched my incorrect RateFindr usage, in terms of the tax rate at least
- In the end the deal was a bit worse than what Iâd thought Iâd be able to get
Like another poster said here, I probably could have saved myself another 50 bucks a month.
At the end of the day, you were happy with the price, agreed, and signed. Now you know for next time. Still a solid deal.
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Yep, itâs all agreed and signed. And a lesson learned.
Hopefully my post helps somebody else.
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Great deal. Can you please upload the lease contract?
Okay, surprise twist! Got a call from the dealer. Honda wouldnât accept the lease unless taxes were paid on the incentives. The dealer told me on the phone that they would eat the tax, but that they would send someone to my house with new paperwork for me to sign.
Sure enough, I just signed the new papers a couple hours ago. The new contract listed a âdealer contributionâ of just under $1500. My payments are unchanged.
This was contrary to what the dealer and you folks all thought. The dealer wasnât convinced Honda was right, but they wouldnât fund the lease unless they paid the tax so they went along with it.
This is crazy. Was it a PA dealer? If so, they should be familiar with PA taxes and this likely wouldnât be their first Prologue deal.
Care to upload the new contract?
It looks like the deal is from a non-PA dealer. Thatâs why there is some back and forth going on regarding the lease contract.
This is indeed crazy. But great that the dealer accepted to take care of the taxes.
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I donât have the new papers. They just had me sign them and then drove away. Itâs the same as the old except that a âdealer contribution: 1500â line was added.
It was a Maryland dealer, Iâm in PA.
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This is why I never trust that any dealer or captive bank actually take the time to understand state level taxation, and why I suspect that PA registrants prob have deals funded all the time with taxed incentives, and itâs never caught / never refunded.
Prob not worth the dealers effort. But wonder what Honda financial wouldâve said when pointed to the PA tax code.
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I sent that section of the tax code to the dealer. shrug
Ultimately I am not paying the tax so it doesnât affect me. Though itâd have been cool if instead of adding a line item, theyâd reduced the price of the car and added the tax to balance it out. That way I could have applied for a refund on the back end.
I just leased a Prologue in MA where the incentives are also not taxed⌠except I had to pay upfront taxes on the rebate/customer cash, like you. The dealer discount was enough that I was happy with my ultimate payment so I went ahead with it. I also had another offer from a different dealer, and they too listed out upfront taxes, so Iâm pretty sure itâs a Honda Finance thing.
I checked my paperwork from when we leased my wifeâs Hyundai Ioniq 5 last year, and yea, no tax on the incentives from Hyundai. I think HFS has this wrong.
I read about a similar situation where Tesla was doing something similar and affecting a number of people. IIRC they were able to file for a tax abatement with the DOR and actually recovered the tax.
Whatâs interesting that @bbixler18 recently posted his example HFS lease where HFS funded (correctly) with untaxed rebates:
In the example from NJ where the tax is done correctly, is that HFS? Or could it be another brand? I couldnât quite tell.
The NJ lease was Volvo.
But this one was Honda, correct?
Correct. I signed a Volvo lease in NJ in May that had everything correct. I then signed a Honda lease in Maryland in July that was incorrect but then corrected by the dealership two weeks later, at a reduced monthly rate.
Heritage Bel Air quoted me 340 for 24/12 on a Touring with 1,000 down. Thatâs 15% off MSRP and I qualify for conquest. What am I doing wrong?