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Does it reduce the cap cost? Is it something that would show up on the sales contract? I guess what I'm trying to figure out is how would I know that I'm getting the $4,000 lease cash on the Elantra sport? Thanks.
Does it reduce the cap cost? Is it something that would show up on the sales contract? I guess what I'm trying to figure out is how would I know that I'm getting the $4,000 lease cash on the Elantra sport? Thanks.
Yes, it should be on the contract as a CAP reduction.
But, factory-to-dealer incentives won't show up. That should just result in a lower selling price.
I am using an Excel spreadsheet that calculates leases, and it does not currently have either a "Lease Cash" or "Customer Incentive". I am using this to help buy a Chevy Volt, where both Lease Cash and Customer Incentive are key attributes of any lease. How do I model these concepts in the spreadsheet?
The spreadsheet has a section that is for "Capitalized Cost Reductions". Do both Lease Cash and Customer Incentive represent reductions of the capitalized cost? If not, where do they go in the calculation, generally speaking?
Assuming the car you want to buy qualifies for the $7500 federal tax credit, and the financing arm of the car company is willing to give you 50% of this, where do you model that in the lease calculation? Does this become an additional capitalized cost reduction?
For a Chevy Volt, is the federal tax credit being given through either the Lease Cash or Customer Incentive?
I am using an Excel spreadsheet that calculates leases, and it does not currently have either a "Lease Cash" or "Customer Incentive". I am using this to help buy a Chevy Volt, where both Lease Cash and Customer Incentive are key attributes of any lease. How do I model these concepts in the spreadsheet?
The spreadsheet has a section that is for "Capitalized Cost Reductions". Do both Lease Cash and Customer Incentive represent reductions of the capitalized cost? If not, where do they go in the calculation, generally speaking?
Assuming the car you want to buy qualifies for the $7500 federal tax credit, and the financing arm of the car company is willing to give you 50% of this, where do you model that in the lease calculation? Does this become an additional capitalized cost reduction?
For a Chevy Volt, is the federal tax credit being given through either the Lease Cash or Customer Incentive?
The "lease cash" is a dealer incentive, which will result in a lower selling price.
The "customer incentive" is like a rebate, and is applied like a down payment (known as a cap cost reduction in lease-speak)
When you lease, the bank gets the federal tax credit. The bank may decide to share it with you as an incentive, or (possibly) with a higher residual.
The "lease cash" is a dealer incentive, which will result in a lower selling price.
The "customer incentive" is like a rebate, and is applied like a down payment (known as a cap cost reduction in lease-speak)
When you lease, the bank gets the federal tax credit. The bank may decide to share it with you as an incentive, or (possibly) with a higher residual.
How will I see "Lease Cash" on my leasing proposal? Will this be embedded into the dealer's offer price to me, so in effect, I never see it as a line item at all?
Regarding "Customer Incentive" will this appear in the list of Capital Cost Reductions as a line item? Is there any other phrase that might be used here instead of "Customer Incentive"? Maybe this is labeled as "Customer Rebate" or "Incentive Rebate" or other similar terms?
Hiding the partial return of a tax credit in the residual value is very sneaky. If they do share it as an incentive, would it be itemized as a Capital Cost Reduction?
The "lease cash" is a dealer incentive, which will result in a lower selling price.
The "customer incentive" is like a rebate, and is applied like a down payment (known as a cap cost reduction in lease-speak)
When you lease, the bank gets the federal tax credit. The bank may decide to share it with you as an incentive, or (possibly) with a higher residual.
How will I see "Lease Cash" on my leasing proposal? Will this be embedded into the dealer's offer price to me, so in effect, I never see it as a line item at all?
Regarding "Customer Incentive" will this appear in the list of Capital Cost Reductions as a line item? Is there any other phrase that might be used here instead of "Customer Incentive"? Maybe this is labeled as "Customer Rebate" or "Incentive Rebate" or other similar terms?
Hiding the partial return of a tax credit in the residual value is very sneaky. If they do share it as an incentive, would it be itemized as a Capital Cost Reduction?
If it's a factory-to-dealer incentive, you won't see it in your deal. It will just be part of the selling price. If it's a factory-to-customer incentive, then it will be listed as a CAP cost reduction.
There is no tax credit for you on a lease. Just work with the numbers you have.
How does knowing the lease cash help me negotiate a deal?
For Hyundai, it's a consumer incentive that works like a down payment, on top of any discount you negotiate.
Same for VW?
VW is a factory to dealer incentive, and will result in a lower selling price. Dealer not required to disclose; it's up to you to determining be the best price.
Does lease cash work like a down payment with Audi financial? Audi also offers a dealer market allowance. How does that affect my sale price offer? If they offer a 1K allowance does that make my 35K offer actually 36K on the paper work, for example? Thanks
Does lease cash work like a down payment with Audi financial? Audi also offers a dealer market allowance. How does that affect my sale price offer? If they offer a 1K allowance does that make my 35K offer actually 36K on the paper work, for example? Thanks
Yes, Audi lease cash is a customer incentive, applied as a CAP cost reduction
The dealer market allowance is money to the dealer, which should hopefully result in you negotiating a lower selling price. But, that's it. You don't see it in the paperwork.
How does Lexus lease cash work as far as where would I find it in the lease. Is this something the dealer offers or the manufacturer? And lexus cash would be used toward the selling price?
How does Lexus lease cash work as far as where would I find it in the lease. Is this something the dealer offers or the manufacturer? And lexus cash would be used toward the selling price?
How does Lexus lease cash work as far as where would I find it in the lease. Is this something the dealer offers or the manufacturer? And lexus cash would be used toward the selling price?
And can I use lease cash as a down payment?
Lexus lease cash is a customer incentive, and is applied like a down payment on the paperwork.
I recently asked for Residual Value and MF numbers on another thread for a Hyundai Santa Fe Hybrid. They also included that there is $1500 lease cash. I know it has been said that for Hyundai this should be a consumer incentive that shows up as something reducing the capitalized cost, like a down payment. When should I expect to see this at the dealership? When we are initially negotiating selling price? If I don't see it, should I ask about it then?
I recently asked for Residual Value and MF numbers on another thread for a Hyundai Santa Fe Hybrid. They also included that there is $1500 lease cash. I know it has been said that for Hyundai this should be a consumer incentive that shows up as something reducing the capitalized cost, like a down payment. When should I expect to see this at the dealership? When we are initially negotiating selling price? If I don't see it, should I ask about it then?
Thanks for the help
It will be on the contract paperwork; negotiate your best price, knowing that the incentive will be taken off that number.
Answers
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But, factory-to-dealer incentives won't show up. That should just result in a lower selling price.
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
The spreadsheet has a section that is for "Capitalized Cost Reductions". Do both Lease Cash and Customer Incentive represent reductions of the capitalized cost? If not, where do they go in the calculation, generally speaking?
Assuming the car you want to buy qualifies for the $7500 federal tax credit, and the financing arm of the car company is willing to give you 50% of this, where do you model that in the lease calculation? Does this become an additional capitalized cost reduction?
For a Chevy Volt, is the federal tax credit being given through either the Lease Cash or Customer Incentive?
The "customer incentive" is like a rebate, and is applied like a down payment (known as a cap cost reduction in lease-speak)
When you lease, the bank gets the federal tax credit. The bank may decide to share it with you as an incentive, or (possibly) with a higher residual.
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!
MODERATOR
2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
Regarding "Customer Incentive" will this appear in the list of Capital Cost Reductions as a line item? Is there any other phrase that might be used here instead of "Customer Incentive"? Maybe this is labeled as "Customer Rebate" or "Incentive Rebate" or other similar terms?
Hiding the partial return of a tax credit in the residual value is very sneaky. If they do share it as an incentive, would it be itemized as a Capital Cost Reduction?
If it's a factory-to-customer incentive, then it will be listed as a CAP cost reduction.
There is no tax credit for you on a lease. Just work with the numbers you have.
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!
MODERATOR
2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
Edmunds Price Checker
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Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!
MODERATOR
2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
thanks!
Edmunds Price Checker
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
Edmunds Price Checker
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Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!
MODERATOR
2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
The dealer market allowance is money to the dealer, which should hopefully result in you negotiating a lower selling price. But, that's it. You don't see it in the paperwork.
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!
MODERATOR
2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!
MODERATOR
2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
Edmunds Price Checker
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Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!
MODERATOR
2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
Hi,
I am trying to understand a Lexus lease cash incentive deal that is currently going on.
The deal is: 2025 NX 450h+ AWD $559 per month, for 36 months and $3,999 due at signing
Then it also notes, “Lease includes $9,000 Lease Cash incentive and excludes tax, title, license, and dealer options and charges.”
So would this lower my monthly payments more or does the $559 per month deal already include the $9,000 lease cash?
Thank you!
Seems like they answered your question
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I recently asked for Residual Value and MF numbers on another thread for a Hyundai Santa Fe Hybrid. They also included that there is $1500 lease cash. I know it has been said that for Hyundai this should be a consumer incentive that shows up as something reducing the capitalized cost, like a down payment. When should I expect to see this at the dealership? When we are initially negotiating selling price? If I don't see it, should I ask about it then?
Thanks for the help
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!
MODERATOR
2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
Maybe, go back to the discussion, and ask again?
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