Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!





2014 Honda Accord Lease Questions

191011121315»

Comments

  • persianaraspersianaras Posts: 8

    Hi, I just got off the phone with a dealer who was insistent on factoring in the drive-off fee's (acq fee, doc fee, tag, etc) into the cap cost. I was very clear that I wanted to pay these fees up front and not roll them into the lease payments, but he said I had to account for them as part of the cap cost. He gave the example that if the price of the car is $30k, and there's $2k in drive off fees, the net cap cost would be $32k and I could not calculate the lease payment based off of just the $30k. This scenario makes no sense to me. I have leased several cars and I have always asked to pay these fees separately without any problem. Essentially, I negotiate the price of the car (cap cost), excluding these fees, and go from there. Either this was an attempt to confuse me, or Honda's leasing program is structured differently (?) I think the former. My questions are:

    1) Is there any benefit to the dealer if one rolls these fees into the monthly payment, vs paying for the these fees up front as part of "cash due at signing" ?

    2) Is the acq fee taxed if payed up front?

    3) Is the doc fee or any other fee taxed if payed up front?

    I have read that such fees (acq and doc) are service fees and therefore not taxed. Any info would be greatly appreciated. Thank you in advance. (in AZ)

  • kyfdxkyfdx Posts: 27,896

    @persianaras said: Hi, I just got off the phone with a dealer who was insistent on factoring in the drive-off fee's (acq fee, doc fee, tag, etc) into the cap cost. I was very clear that I wanted to pay these fees up front and not roll them into the lease payments, but he said I had to account for them as part of the cap cost. He gave the example that if the price of the car is $30k, and there's $2k in drive off fees, the net cap cost would be $32k and I could not calculate the lease payment based off of just the $30k. This scenario makes no sense to me. I have leased several cars and I have always asked to pay these fees separately without any problem. Essentially, I negotiate the price of the car (cap cost), excluding these fees, and go from there. Either this was an attempt to confuse me, or Honda's leasing program is structured differently (?) I think the former. My questions are:

    1) Is there any benefit to the dealer if one rolls these fees into the monthly payment, vs paying for the these fees up front as part of "cash due at signing" ?

    2) Is the acq fee taxed if payed up front?

    3) Is the doc fee or any other fee taxed if payed up front?

    I have read that such fees (acq and doc) are service fees and therefore not taxed. Any info would be greatly appreciated. Thank you in advance. (in AZ)

    Usually, acquisition and doc fees are taxed, even if paid upfront...

    If Arizona is a state where they tax the payment, each month (and, I think that it is), the only amounts that would be un-taxed are government fees (title/registration, for example).

    The lease calculation looks a little convoluted on a dealer's screen.. But, even if they add everything in, and then you give them $2000 upfront, it will still be broken out into taxed and untaxed.. Of course, the payment will be exactly the same (and the monthly tax). But, your $2000 upfront will still be separated into 1st payment (with tax), acquisition fee, doc fee, title and registration, with the rest (if any) going to Cap cost reduction and tax on the acq.fee and doc fee.

    In other words, as long as your amount due at signing is the same as the fees they are rolling in, you shouldn't get taxed on the title/registration fees.. There would definitely not be any advantage to the dealer doing it differently, unless they are just trying to hide a fee by lumping it into the $2000.

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • pcarlson1pcarlson1 Posts: 1
    Residual Value on Honda Accord Sport 15k miles?

    Thanks
  • MichaellMichaell ColoradoPosts: 3,549

    @pcarlson1 said: Residual Value on Honda Accord Sport 15k miles?
    Thanks

    Lease term?

    MODERATOR
    2013 Hyundai Elantra GT / 2010 Mazda CX-7 GT / 2014 MINI Countryman S ALL4
    Need help navigating? michaell@edmunds.com - or send a private message by clicking on my name.
    Share your vehicle reviews

  • gueloxguelox Posts: 1

    What do you guys think.

    Honda accord Sport CVT. Msrp 25,305 Sale price 21,740 1100 drive of fees included the first month payment, 250 dealer doc fee,ectt

    residual 56% MF 0.00026

    12k/36m tax is 6.9%

    payment of 224.00 tax included.

    does this seam like a goo deal?

  • gueloxguelox Posts: 1

    What do you guys think.

    Honda accord Sport CVT. Msrp 25,305 Sale price 21,740 1100 drive of fees included the first month payment, 250 dealer doc fee,ectt

    residual 56% MF 0.00026

    12k/36m tax is 6.9%

    payment of 224.00 tax included.

    does this seam like a goo deal?

Sign In or Register to comment.