Help me dissect this lease deal

yh8dgr8

I need help dissecting this lease offer: 36 month-12k miles, zip code 91103:
MSRP $24125
Selling Price $22500
Cap Reduction $4915.07 (dealer says this is all fees upfront minus down payment)
Rebates - $6,000
RV - 47%
MF .00117
Tax - $496.02
Cap Reduction tax - $466.93 Acquisition Fee - 650.00
Monthly Payment of $247.65 (Seems high to me)

 Only out of pocket is $500 (Boost Up Price Match).

Im really questioning the cap reduction ($4715.07) and the cap reduction tax. Seems like I'm paying tax twice ($496.02) & ($466.93).

kyfdx

yh8dgr8 said:

I need help dissecting this lease offer: 36 month-12k miles, zip code 91103:

MSRP $24125

Selling Price $22500

Cap Reduction $4915.07 (dealer says this is all fees upfront minus down payment)

Rebates - $6,000

RV - 47%

MF .00117

Tax - $496.02

Cap Reduction tax - $466.93
Acquisition Fee - 650.00

Monthly Payment of $247.65 (Seems high to me)


 Only out of pocket is $500 (Boost Up Price Match).

Im really questioning the cap reduction ($4715.07) and the cap reduction tax. Seems like I'm paying tax twice ($496.02) & ($466.93).

The CAP reduction is what's left over from the $6000 rebate, after the upfront fees are paid. That reduction is applied to the sale price, which results in the adjusted CAP cost.

The $1085 is probably 1st payment, DMV fees, doc fee, and the CAP reduction tax. I'll guess that the acquisition fee is added to the CAP cost separately.

Your two tax lines are confusing, but it's likely this:
$466.93 is the tax on the CAP reduction. Since the CAP reduction lowers the lease payment, tax on it has to be collected upfront, as it's not reflected in the payment.
$496.02 is an informational line, showing the amount of tax you pay within the lease payments. It's not an additional amount. It's the amount of tax that's added to your payment, monthly X 36. (most likely)

As far as the actual payment, we'd have to see the lease deal screenshot. Most of these amounts would become clear, I think, if we knew the actual adjusted CAP cost, tax rate, etc, etc.

yh8dgr8

Here is the screenshot of the lease break down sent by the dealer:

kyfdx

yh8dgr8 said:

Here is the screenshot of the lease break down sent by the dealer:

Okay.. you have $6000 of working cash (the rebate)
Subtract:
$247 1st payment
$363 DMV/doc fees
$467 CAP reduction tax
That leaves the:
$4915 for CAP reduction.
(CAP reduction is taxed upfront, because that money is not in the payment... in other words, the rebate is taxable).

CAP cost =
$22500 sale price
+$650 acquisition fee
- $4915 CAP reduction
= $18,235 adjusted CAP cost.

Given those numbers, the payment is correct.
($226/mo. + $21 tax)

I think the $496 tax on the other page is informational about the amount of tax due upfront ($467 CAP tax, $7 misc. tax, $21 tax on first payment)

I rounded off all of the pennies..

yh8dgr8

Thanks for the information.