TMV Lease Cash and Sales Tax (plus Florida specific questions)

evnoob

Hello All,

When trying to determine a fair target lease deal, that is how I'm currently doing it. Could someone please let me know if I'm doing it correctly?
A. When TMV is already less than Dealer Invoice
1. Find value of TMV of the car in my state
2. Subtract customer rebates that I find in Edmunds for my zip code from value found in step 1 (I understand some are already factored in the TMV, Edmunds mobile app posts a note for those cases, I would not subtract incentive in that case)
3. Subtract the lease cash posted by moderators in this forum for my specific vehicle and state (or is that already factored in the TMV)?

4. Subtract down payment
5. Add vehicle registration fees
6. Use MF and RV posted on forums to deterine monthly fees

7. Add sales tax to this figure.

B. When TMV is higher than Dealer Invoice

1. Find the Dealer Invoice for my state

2. Do I subtract lease cash and rebates here as well?

3. Subtract down payment

4. Add vehicle registration fees
5. Use MF and RV posted on forums to deterine monthly fee

6. Add sales tax to this figure.

I have the following questions:

A.Does the above sound right to you? Is it correct that sales tax is only relevant for the monthly lease payment in Florida? Should I tax the down payment before I subtract it from the base price?

B. Also am I correctly determining what should be my base number for negotiation (i.e TMV vs Dealer Invoice). I have heard that some people use a much lower number than the dealer invoice to minimize or negate the holdbacks profit for the dealer and then they have the dealership negotiate up from that point. Is that a correct way of doing it?

C. Lastly, my question to Florida resident, how much does it cost to register a vehicle for the first time? My calculations based on Honda Civic 2014 EX-L weight say $400 but my dealer has quote me $595 in addition to $70 "Electronic Filing Fee" (legit?) and a obviously fake $70 "lease surcharge fee" and $700 dealer fee!! I'm not sure if I'm calculating it incorrectly or the dealer is doing one more unethical trick on me. Can someone please confirm my number?

Thanks!

Michaell

evnoob said:

Thanks Stever,

I guess my biggest question that I'm confused about is:
1. Should I add the sale tax before calculating the monthly payments? This basically means I'm rolling in the sale tax for the entite car price into my monthly payment. I know most states don't do that but few are but I'm not sure if Florida is one lf them.
2. My second bigges question is about the "lease cash" that moderators sometimes post in response to users inquiries, is that the same as "Dealer Cash" that I see on Edmunds "Car Research" pages? Or is that a hidden incentive in addition to the one visible on Edmunds?

Thanks!

In Florida, sales tax is applied to the monthly payment

Lease cash is factory to dealer, which the dealer can then pass along to the customer. There may be other factory to dealer incentives, both known and unknown.

stever

Someone with actual leasing experience will have to fill in the gaps but this is from an article about TMV:

"While Edmunds does not offer TMV prices for leasing, the TMV price of a car is a useful piece of information if you plan to lease. A monthly lease payment is based on the selling price of the car, or the "cap cost" in leasing lingo. The lower the cost of the car, the lower the monthly lease payment. Once you find the TMV price of a new car, you can enter that price into the Auto Lease Calculator, along with other information about the car, to get an estimated lease payment."

evnoob

Thanks Stever,

I guess my biggest question that I'm confused about is:
1. Should I add the sale tax before calculating the monthly payments? This basically means I'm rolling in the sale tax for the entite car price into my monthly payment. I know most states don't do that but few are but I'm not sure if Florida is one lf them.
2. My second bigges question is about the "lease cash" that moderators sometimes post in response to users inquiries, is that the same as "Dealer Cash" that I see on Edmunds "Car Research" pages? Or is that a hidden incentive in addition to the one visible on Edmunds?

Thanks!