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Lease Terms

bashyjoshybashyjoshy Posts: 17
edited January 2018 in Honda
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.

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  • kyfdxkyfdx Posts: 116,380

    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.

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • I guess that would be helpful, sorry. 2017 Honda Pilot EX-L
  • kyfdxkyfdx Posts: 116,380

    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?

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • 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
  • 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.
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