Help with lease numbers from contract

gtravis

Please see pic for the itemization of cap cost. I am in zip code 60187. Tax is probably 7.25%
What is the formula for the sales tax of $853.22. Don't know how that number was calculated. Please advise. Thanks

Michaell

gtravis said:

Please see pic for the itemization of cap cost. I am in zip code 60187. Tax is probably 7.25%
What is the formula for the sales tax of $853.22. Don't know how that number was calculated. Please advise. Thanks

What state is this? Some states calculate the sales tax for a lease up front.

stever

That 60187 zip is in Illinois - did they ever get their leasing laws straightened out?

Michaell

stever said:

That 60187 zip is in Illinois - did they ever get their leasing laws straightened out?

Sort of. Illinois No longer tax the entire selling price, but Cook County imposes its own sales tax for leases. The total is something like 17%.

I believe the state collects the sales tax up front and the county adds it to the monthly payment.

gtravis

iam in dupage county . zip 60187. If you buy a new car the sales tax is 7.25 and lease laws are now just like other states. Please let me know if you figure out how that sales tax was calculated..

Michaell

gtravis said:

iam in dupage county . zip 60187. If you buy a new car the sales tax is 7.25 and lease laws are now just like other states. Please let me know if you figure out how that sales tax was calculated..

It looks like the tax is calculated on the sum of the lease payments.

Sales tax obligations vary from state to state. Some tax the monthly payment alone. Others (like IL) calculate the total sales tax for the lease up front. And there are still a handful of states that applies sales tax to the entire selling price of the vehicle, which is what IL did until 2015.

Mr_Shiftright

what's this "Wear and Tear" for $1195? Is that your wear and tear insurance?

gtravis

yes. excess wear insurance. I took since it increased the residual by one % or something.

gtravis

hi Mike , what other numbers do you need from my lease agreement so you can help me with the sales tax formula ? I am looking for something like "some number" * 7.25 = $853.22 Need help in finding this "some number" in my lease agreement.. My monthly payment including tax and everything is $396.90 See more details below. Thanks

Michaell

gtravis said:

hi Mike , what other numbers do you need from my lease agreement so you can help me with the sales tax formula ? I am looking for something like "some number" * 7.25 = $853.22 Need help in finding this "some number" in my lease agreement.. My monthly payment including tax and everything is $396.90 See more details below. Thanks

It would be the $396.90 x the number of months in the lease.

gtravis

396.90 x 36 = 14288.40 and 7.25% of that is $1035.90. How do you arrive at 853.22 shown in the first pic on the top of this thread

Michaell

gtravis said:

396.90 x 36 = 14288.40 and 7.25% of that is $1035.90. How do you arrive at 853.22 shown in the first pic on the top of this thread

I can't - you'll have to ask the dealer. It's their numbers you are questioning.

gtravis

i already asked. They said same thing you said .. it's part of the monthly payment. I am hoping some lease guru on these forums will get the formula..I will ask another dealer also. I know I will eventually get it. I still have 2 years left on my lease so in no hurry.

Michaell

gtravis said:

i already asked. They said same thing you said .. it's part of the monthly payment. I am hoping some lease guru on these forums will get the formula..I will ask another dealer also. I know I will eventually get it. I still have 2 years left on my lease so in no hurry.

Trying to exit your existing lease with 2 years left could be an expensive proposition.

Just thought of something - there may be sales tax owed on any down payment or incentive.