Tax is complicated. It is basically on the total lease cost, including interest, fees, and rebates, minus DMV fees.
Just for example, if selling price is $30k BEFORE incentives, residual is $20k, acquisition and doc fee total $1k, and interest is $4k (36 mos x 111.11/mo), then you pay tax on $15k ($10k depreciation + $1k fees + $4k interest).
So it isn't really on the monthly because you may put money down that decreases the monthly, but you still have to pay tax on that.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
Check to see if the adjusted CAP is the same as their bottom line, and then verify they are using the base money factor. One of those two things is different, or you'd come up with the same number they do.
Is it within my right to ask for their numbers or should I show them what we arrived at?
You need to reconcile them, for sure. The only way that will happen is to see their numbers, and calculations. Keep asking questions of them until you're satisfied with the answers.
Here is the deal that I got in Massachusetts. What do you think? New X2 xDrive 28i MSRP $44,895 36/12,000 $389 month (includes tax) with $2,500 due at signing (includes first month payment) MF .00182 Gross Capitalized Cost $39,954.73 + $925 (acquisition fee) = $40,879.73 Adjusted Capitalized Cost $35,206.67 RV $26,039.10 Rebates totaled $4,250
Here is the deal that I got in Massachusetts. What do you think? New X2 xDrive 28i MSRP $44,895 36/12,000 $389 month (includes tax) with $2,500 due at signing (includes first month payment) MF .00182 Gross Capitalized Cost $39,954.73 + $925 (acquisition fee) = $40,879.73 Adjusted Capitalized Cost $35,206.67 RV $26,039.10 Rebates totaled $4,250
$3500 discount on a $48k unit is awful. Definitely need a better discount. At least another $1500 off.
In the other deal I had the taxes and fees came to $3216.76 while in this deal they add to around $1350. Isn’t that $1900 difference an added savings? Or is that the wrong way to compare the deals? You have been so helpful. Thank you!!!
In the other deal I had the taxes and fees came to $3216.76 while in this deal they add to around $1350. Isn’t that $1900 difference an added savings? Or is that the wrong way to compare the deals? You have been so helpful. Thank you!!!
They can't change the tax. If you were getting charge $3216, that is wrong, and they'd have to refund the difference to you. Not sure why it is coming up only $1100 in that second deal. I calculate about $1466 at the NJ 6.625% rate.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
In the other deal I had the taxes and fees came to $3216.76 while in this deal they add to around $1350. Isn’t that $1900 difference an added savings? Or is that the wrong way to compare the deals? You have been so helpful. Thank you!!!
They can't change the tax. If you were getting charge $3216, that is wrong, and they'd have to refund the difference to you. Not sure why it is coming up only $1100 in that second deal. I calculate about $1466 at the NJ 6.625% rate.
The difference in doc fee is certainly to your advantage, but they can't just waive the acquisition fee. Not sure how they are getting around that since they claim to be using .00182 MF. They could bump it to .00232 in lieu of the acquisition fee, but they can't completely waive it since that is charged by BMWFS, not the dealer.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
rent charge (122.63) x 35 mos = 4292.05 plus adjusted cap cost minus residual plus incentives (40688.28-26692.40+4750) = 23037.93 minus MV fee (304.50) = 22733.43 times 6.625% = 1506.09
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
rent charge (122.63) x 35 mos = 4292.05
plus adjusted cap cost minus residual plus incentives (40688.28-26692.40+4750) = 23037.93
minus MV fee (304.50) = 22733.43
times 6.625% = 1506.09
rent charge (122.63) x 35 mos = 4292.05
plus adjusted cap cost minus residual plus incentives (40688.28-26692.40+4750) = 23037.93
minus MV fee (304.50) = 22733.43
times 6.625% = 1506.09
Thank you for sharing! Why is it 35 months?
No rent charge on the first month that is paid up front.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
rent charge (122.63) x 35 mos = 4292.05 plus adjusted cap cost minus residual plus incentives (40688.28-26692.40+4750) = 23037.93 minus MV fee (304.50) = 22733.43 times 6.625% = 1506.09
Thank you for sharing! Why is it 35 months?
No rent charge on the first month that is paid up front.
That's not accurate.
Even though rent charge is analogous to interest, it isn't interest. It's just a tool to calculate the monthly finance charge. In the end, you are renting the vehicle for a specified amount. And, the "rent charge" is the same every month.
rent charge (122.63) x 35 mos = 4292.05 plus adjusted cap cost minus residual plus incentives (40688.28-26692.40+4750) = 23037.93 minus MV fee (304.50) = 22733.43 times 6.625% = 1506.09
Thank you for sharing! Why is it 35 months?
No rent charge on the first month that is paid up front.
That's not accurate.
Even though rent charge is analogous to interest, it isn't interest. It's just a tool to calculate the monthly finance charge. In the end, you are renting the vehicle for a specified amount. And, the "rent charge" is the same every month.
true. first month is the same payment as the other months. don't know why that didn't occur to me.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
Comments
There is some other reason for the discrepancy.
And, tax is 6.625% on vehicles in NJ. But, you can't just multiply the payment by that number, as it already includes the tax.
Plus, any upfront incentives are also taxed.
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Just for example, if selling price is $30k BEFORE incentives, residual is $20k, acquisition and doc fee total $1k, and interest is $4k (36 mos x 111.11/mo), then you pay tax on $15k ($10k depreciation + $1k fees + $4k interest).
So it isn't really on the monthly because you may put money down that decreases the monthly, but you still have to pay tax on that.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
Check to see if the adjusted CAP is the same as their bottom line, and then verify they are using the base money factor. One of those two things is different, or you'd come up with the same number they do.
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
New X2 xDrive 28i
MSRP $44,895
36/12,000
$389 month (includes tax) with $2,500 due at signing (includes first month payment)
MF .00182
Gross Capitalized Cost $39,954.73 + $925 (acquisition fee) = $40,879.73
Adjusted Capitalized Cost $35,206.67
RV $26,039.10
Rebates totaled $4,250
Congrats, and enjoy!
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
Only way to improve it is to get a better selling price, or use MSDs if available.
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
What are the numbers for 18 and 19?
Thanks
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'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
Deal 1:
$3216= Tax 1382 + doc fees 599+ 925+ 310.50
Deal 2:
$1648: Tax 1139+199+ 310.50
So the fees were waived in Deal2. A savings of $1568. Would that be similar to a $1500(correction) drop in MSRP in the lease calculation?
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
plus adjusted cap cost minus residual plus incentives (40688.28-26692.40+4750) = 23037.93
minus MV fee (304.50) = 22733.43
times 6.625% = 1506.09
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
That's not accurate.
Even though rent charge is analogous to interest, it isn't interest. It's just a tool to calculate the monthly finance charge. In the end, you are renting the vehicle for a specified amount. And, the "rent charge" is the same every month.
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$3750 lease credit
2019 discussion is here:
https://forums.edmunds.com/discussion/53685/bmw/x2/2019-bmw-x2-lease-deals-and-prices/p1?new=1
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Unfortunately, we've lost the incentive info for Florida.
But, the lease credit is likely $2250 or $2750.
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That's not accurate.
Even though rent charge is analogous to interest, it isn't interest. It's just a tool to calculate the monthly finance charge. In the end, you are renting the vehicle for a specified amount. And, the "rent charge" is the same every month.
true. first month is the same payment as the other months. don't know why that didn't occur to me.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
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$3750 lease credit
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$3250 incentive
64%/61%/58% residual
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Thanks!
36/12
.00182 and 58%
$3750 lease credit
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
$3250 lease credit
Use this link to help with pricing research:
https://www.edmunds.com/tmv.html
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