Lease Terms

bashyjoshy

Hello, thanks for your help in advance.
20853 zip
Gross Cap Cost: $37,304
MF: .00137 (is this the top tier preferred credit?)
R = 59%
36/12

My other questions involves trade in value and the impact on tax. We have 2006 Odyssey with low miles and it has been appraised at $24, 250, but the payoff, because we have 12 payments left is $25, 275 - so i have $1025 addition going to the gross cap cost. The dealership is saying that I need to take in the impact of the 6% tax saving that the trade in is essentially offsetting. I'm not understanding fully what one has to do with the other.

kyfdx

bashyjoshy said:

That MF equates to roughly 3.28% correct?
MSRP - $39,345
$0 at signing, i have $1,779.44 representing Tag & Tile, Processing Fee, Capitalized Tax (what are these?) Acq Fee, that I could opt not to roll in especially considering 3.28% doesn't seem that good of rate.
Assuming zero down the monthly they quoted was $481.61

$39,345 MSRP
$37,304 Gross CAP (this includes the $1779?)
.00137 MF
59% residual

I get $474.31.. That's not off by much. Capitalizing the first payment might have something to do with it.

Taxes in MD are collected upfront. If you aren't paying them upfront, then they are capitalized (rolled into the lease payment).

There is either $700 or $1300 of incentives on this vehicle, depending on your region.
Unfortunately, I don't have the list of which state is in which region.

It looks like a decent deal, assuming you are rolling in $1000 of negative equity on your current vehicle.

kyfdx

bashyjoshy said:

Hello, thanks for your help in advance.
20853 zip
Gross Cap Cost: $37,304
MF: .00137 (is this the top tier preferred credit?)
R = 59%
36/12

My other questions involves trade in value and the impact on tax. We have 2006 Odyssey with low miles and it has been appraised at $24, 250, but the payoff, because we have 12 payments left is $25, 275 - so i have $1025 addition going to the gross cap cost. The dealership is saying that I need to take in the impact of the 6% tax saving that the trade in is essentially offsetting. I'm not understanding fully what one has to do with the other.

What new Honda are you looking to lease?

Maryland taxes the full selling price, even on a lease. So, if you trade your vehicle in, they'll give you a credit against the price of the new model. So, $24,250 trade-in allowance means you'll pay $1455 less in tax on the new vehicle. (assuming 6% rate).
Of course, that's irrelevant to the value of your current vehicle. It's either worth $24,250 or it isn't. If you feel they are low-balling you, that's part of your negotiation. You don't want to take any less, just because you are getting a trade-in tax credit. That's your money, not theirs.

bashyjoshy

I guess that would be helpful, sorry. 2017 Honda Pilot EX-L

kyfdx

bashyjoshy said:

I guess that would be helpful, sorry. 2017 Honda Pilot EX-L

.00137 MF is correct for top tier credit.

What is the MSRP?
Did they quote you a payment?
How much due at signing?

bashyjoshy

That MF equates to roughly 3.28% correct?
MSRP - $39,345
$0 at signing, i have $1,779.44 representing Tag & Tile, Processing Fee, Capitalized Tax (what are these?) Acq Fee, that I could opt not to roll in especially considering 3.28% doesn't seem that good of rate.
Assuming zero down the monthly they quoted was $481.61

bashyjoshy

gross cap includes the $1779.44
i need to work on the trade in and hold my ground. They came to use for the low mileage so ultimately we dont need to do anything and can wait.
thank you as always, great forum, fast response.