Leasing a car in NY - Math Challenge

tanoli8

Would someone break it down to me how a car lease calculation might work in NY if all I am paying is the first month and title+dmv and having the tax rolled into the payments? I know it is double taxed if you add the tax payable to the cap cost, and that the incentive gets taxed too, but then how does it change the depreciated value? it kind of feels like a loop...
asking for a math-head out there
use the following numbers
MSRP $ 23000, Lease Incentive $ 3500, MF 0.00193 , tax rate 8.625 % , Acq fee+title+dmv = $700
Sign and Drive structure of the deal

I know its probably something simple and common sense im missing

kyfdx

tanoli8 said:

Would someone break it down to me how a car lease calculation might work in NY if all I am paying is the first month and title+dmv and having the tax rolled into the payments? I know it is double taxed if you add the tax payable to the cap cost, and that the incentive gets taxed too, but then how does it change the depreciated value? it kind of feels like a loop...
asking for a math-head out there
use the following numbers
MSRP $ 23000, Lease Incentive $ 3500, MF 0.00193 , tax rate 8.625 % , Acq fee+title+dmv = $700
Sign and Drive structure of the deal

I know its probably something simple and common sense im missing

Nothing changes the residual value. If you add items to the CAP cost (tax, first payment, etc, etc), then you are increasing the depreciation portion of the payment (the difference between Net CAP and residual).

Unless you have a specific program, where they waive the first payment (like VW), then "Sign and Drive" is a mistake in NY. You are adding non-taxable items to the CAP cost, where they then become taxable.