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General Questions about Leasing Vehicles

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  • Thanks John - I am hopeful it gets resolved tomorrow (Tuesday), as the DMV office has promised to call taxation while I am there.

    I will be very happy to pay all of the sales tax due upfront and register the vehicle!

    I would even be happy to go to the taxation office and pay the sales tax directly to them and have them apply a "Sales Tax Satisfied Stamp" to the tiltle before going back to Motor Vehicle Office . . . but I doubt this is an option.
  • Problem Solved!

    Before going back to DMV this morning, I called the NJ Division of Taxation to alert them that DMV would be calling them (Taxation Office) today for instruction on my situation.

    The Division of Taxation people were wonderful! The gentleman I spoke to took down my information and offered to call ahead before my arrival at the DMV office so that they would be ready when I arrived.

    Sure enough, DMV was ready and expecting me when I arrived and I did not have to wait in any of the long lines that I saw. It took about 10-15 minutes and a little tinkering with their software to be able to correctly enter the "Tax Base $" in the "Net Sale Price" field but once they figured it out, voila, home free.

    The main thing you will need to register a vehicle in NJ, that has been leased from an out-of-state dealership, is a detailed worksheet breakdown, on the Dealership's letterhead, showing how the sales tax was estimated/calculated. I would also recommend calling the Taxation Division before going to the local Motor Vehicle Office in order to lay the groundwork.

    Apparently this is not something they routinely deal with so it will require a little extra time, patience and effort.

    Also remember that, in addition to the documents normally needed to register a vehicle, you will need Power of Attorney from the Leasing Company/Lessor in order to sign and complete the paperwork on their behalf, as they are the "Owner" of the vehicle and listed as such on the registration and title work.
  • Is it mandatory? Dealer says so, I am questioning it. I have them on numbers and they are challenging all of my numbers to them.
    DMV/Doc/Bank Acq I know are all upfront and will come out of my down payment. Just wondering
  • qbrozenqbrozen Posts: 17,540
    Mandatory? I don't think so. But if you don't pay it now, you will pay it at the end of the lease.

    '13 Stang GT; '15 Fit; '98 Volvo S70; '14 Town&Country

  • Right, so 36 months of payments is 36 months. Whats the diff if its in front or back as long as I pay it. Not looking to miss a payment but when they say 36 mos I have payment figure as 36 at certain $, if I front one, shouldnt payments come down to 35 ?
    Its semantics no?
  • qbrozenqbrozen Posts: 17,540
    Yes. Correct.

    It COULD be that Honda Finance demands it up front. That part I can't answer. But I'm not sure why that should be written in stone. I could have a faulty memory, but it seems to me I've even been asked before if I wanted to pay up front or at the end.

    '13 Stang GT; '15 Fit; '98 Volvo S70; '14 Town&Country

  • jwilliams2jwilliams2 Posts: 863
    edited January 2011
    The first months payment is generally paid at lease inception. Just like leasing a property, you pay for the first month up front. This is a requirement of all leasing companys, as far as I know. Financing is the opposite.

    And yes, you will only make a total of 36 payments. The last one is due 30 days before the actual end of the lease. The only thing you pay at lease end is the lease termination fee, and for any damages or over mileage.

    You can always roll the first months payment, along with the DMV/Doc/Acquisition fee into the lease, which will obviously increase your payments somewhat. Your choice.
  • qbrozenqbrozen Posts: 17,540
    So are you saying in a zero-due-at-signing lease situation, you only make 35 payments? Seems odd, but I really don't remember if that's what I have done on mine.

    '13 Stang GT; '15 Fit; '98 Volvo S70; '14 Town&Country

  • No, not at all. The first months payment is rolled into or added to the gross capitalized amount. So you are basically financing your first months payment, the same as your other start up costs.
  • mlbdcmlbdc Posts: 1
    Hello-- thanks for offering this forum, it is awesome! I am looking to lease a car for the first time, and I'm wondering whether I can negotiate on price based on the mileage I anticipate using? I've seen the typical 10k, 12k and 15k/yr-- but it is likely that I will only use the car 5k-7k/yr.

    Do dealers offer leases with such low mileage and, if they don't, can I make a case at the dealership that-- all else equal-- the car I return to them will have a lot less mileage than the average lease?

    Thx for any help!
  • jwilliams2jwilliams2 Posts: 863
    edited January 2011
    Some car companies do offer 7,500 mile leases. Have you asked? And you can of course negotiate the price, just as if you were paying cash. But the only thing the mileage changes is the residual, which only affects the payments by a small amount. It has no bearing on the price of the car.

    And the dealer has no idea if the car will come back to his store. And even if you turn it back in to him, he has to buy it from the leasing company who will probably charge him more because of the low miles. So it's no real advantage to him.
  • qbrozenqbrozen Posts: 17,540
    That still reads as 35 payments. Yes, they will be higher, I understand that, but you are saying it won't be tacked on to the end, correct? So that would be 35 total payments, yes?

    '13 Stang GT; '15 Fit; '98 Volvo S70; '14 Town&Country

  • You would have 35 remaining payments, as your first was rolled into the lease. Hope that is clear.
  • Finalizing a deal and my friend says he never accepts the amount given by the dealership for miles over and negotiates it usually to .10 per
    Anyone?
  • allroadanger,

    Dealerships do not have the authority to negotiate excess mileage charges. The excess mileage rate structure is established by the fund provider and is non-negotiable. However, excess wear/tear charges are negotiable.

    Hope this helps.

    John
  • Hey John good hearing from you! Your knowledge and help from autoleasegeek.com saved me a ton! How does one go about neg. the wear/tear charges? Is there a list of items that a $ is associated with
    AllRoadAnger
  • I went to get my car which I was leasing in NY on Saturday. Spent weeks haggling the price down to a very respctable level. When we looked at our numbers at the dealership though, we were told that for those prices I had to get my own GAP insurance which was mandatory for this leasing bank. We were told this in the financing room of Infiniti so we had no time to prepare. We made a few calls but no large insurance company sells GAP insurance to NYers. We are not sure its available at all. They told us we would have to do a more expensive deal which included gap coverage so we took that deal (50 bucks higher monthly payment for 39 months). Now we feel it was all a scam to get us in the dealership and just hand us the regular package that everyone pays. Is this illegal? Can a NYer actually get GAP insurance?
  • rm567rm567 Posts: 6
    What would be a fair lease payment on a 2011 Nissan Rogue SV with SL pkg ($27,090 msrp + 810 deliv + doc + tax + title), 36-39 months, no down payment, 15k miles/yr?

    What would be a good negotiated price? (And do the lease calculations use the lower negotiated "sales" price or the retail price?)

    money factor?
    residual value?

    Does anyone know what special deals or programs are available on Rogue leases?

    Thanks for the help and advice.
  • kyfdxkyfdx Posts: 29,958
    Try posting all of those questions here:

    Nissan Rogue Lease Questions

    regards,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • I'm trying to decide whether to lease a 2011 KIA Sorento LX V6 AWD now or wait until September and lease the 2012. Generally speaking, which is most likely to offer the best deal?

    Thanks in advance!
  • zyaaaaazyaaaaa Posts: 36
    edited May 2011
    Is it currently easier to get approved for a lease or finance? Does this vary by score and auto loan history?
  • zyaaaaazyaaaaa Posts: 36
    edited May 2011
    Got another... what are the general rules for rolling negative equity into a lease and what effect does it have? Is the amount capped based on MSRP usually? Is the interest the same as the money factor for this amount?
  • delta737hdelta737h Posts: 603
    zyaaaaa,

    Negeative equity, like any other items that are capped in the lease, is added to the agreed upon value (i.e., sell price) to determine the gross cap cost. Cap reductions are deducted from the gross cap to determine the adjusted cap, upon which, the lease finance and depreciation charge is computed and, hence, the payment is determined.

    Generally, negative equity can be capitalized in the lease as long as the amount advanced, usually measured by the adjusted capitalized cost, does not exceed the fund provider's maximum funding level which varies depending upon the provider. Typically, the range is 90% - 130% of the MSRP.

    Another concern is that there are those states that tax negative equity and there are those that don't. You should check with your state's department of revenue to determine the tax treatment given negative equity.

    Hope I've answered your questions.

    John
    The AutoLeaseGeek
  • zyaaaaazyaaaaa Posts: 36
    Thanks for the reply. I did some checking and didn't see anything about FL taxing negative equity. I did see where they credit sales tax on trade-ins and am wondering how that works when going from traditional finance to lease and also when you are upside down.

    I'm still trying to run the numbers to see if rolling the negative equity makes sense. I hate to do it again but the new payment would be around $200 less and could be directed to other debts with higher interest. Plus this would assure that its gone in 3 years and wont happen again. So many numbers to consider!
  • delta737hdelta737h Posts: 603
    edited May 2011
    FL taxes the monthly payment streams. Also, negative equity is taxable in FL. However, positive equity reflecting a net trade credit is not subject to tax.

    John
  • zyaaaaazyaaaaa Posts: 36
    Got it - thanks for all of the help!
  • amoszamosz Posts: 29
    Hi

    I'm new to purchasing and leasing cars.

    I will be moving from NY to MD this summer. I am looking to possibly lease 2 cars in the month before I move to MD. I know I will have to register the car in MD to get Maryland license plates. But will I be responsible for paying NY taxes on the lease vehicle or maryland taxes (which taxes the final sale cost)?

    I can't find any information online so far.

    Would there be any gain from doing the lease in NY?
  • im_brentwoodim_brentwood Posts: 4,883
    NY Taxes are almost certainly higher than MD taxes.

    In order to register the car in MD you'll probably have to already have MD residency.
  • kyfdxkyfdx Posts: 29,958
    NY only taxes the total of payments, though.... and, MD taxes the full selling price..

    I would worry about moving within a month of leasing... NY collects their tax upfront, and if you roll it into the payment, you could end up paying tax twice. Hopefully, there would be some sort of offset, but why take a chance?

    I would wait to lease in Maryland, either way... If you absolutely knew you could pay the NY tax, and not be taxed again in MD, then that would be the best way to go.. but, I think the timing (moving shortly after signing) might be what trips you up..

    regards,
    kyfdx
    (serial lessee)

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • amoszamosz Posts: 29
    Thanks.

    My initial thought was that it may end up being cheaper to lease the car here in NY if I were to pay a higher sales tax on a smaller amount of money.

    Because of my schedule, I really couldn't lease a car until memorial weekend at the earliest and hope to be in my new apartment by the 3rd week of June.

    I guess as a side note. If I leased the car within NY, do I have to register the car in MD? I'll be in MD for only 12 months on a short contract. Where I go from there its still to be determined. I still have a texas drivers license.

    Sorry, I'm new to a lot :|

    Thanks for the replies. Very helpful so far.
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