When we enter conquest cash and loaner incentive cash for Cadillac Lyriq in the lease calculator are they considered tax or untaxed incentives in California? Is there a way to know this info not only for California, but other states too.
Those are generally taxed. The rough rule of thumb is that if the incentive is direct to the consumer, it is taxed. If it’s dealer cash that gets rolled into the sales price on the contract, it’s untaxed.
But isn’t conquest cash rolled into the sales price when calculating the lease price? How are you distinguishing direct to consumer versus dealer cash? I thought most dealer cash, lease cash, etc. is taxed, but conquest/loaner are not.
Not usually. It is usually an itemized incentive. Anything conditional is typically itemized.
Dealer cash isn’t typically published anywhere, but may be discussed here. It’s money the OEM is giving the dealer (not the customer) to move the car. It’s up to the dealer to share all/some/none or even disclose its existence.
If Edmunds mentions it, Rate Finder lists it, or it’s being advertised (Costco, Penfed, Loyalty, Conquest, Affinity) it’s customer cash and taxable.