Dealer lease tactics question

BklynDude

Hi folks. When defining the residual value in a lease, is that value based on MSRP or the negotiated sale price? Also, when calculating taxes owed on a lease, would like to check my understanding that this value is based on the depreciated value of the vehicle + any incentives that were applied to the deal? Thanks for the helpful service this forum provides!

Michaell

BklynDude said:

Hi folks. When defining the residual value in a lease, is that value based on MSRP or the negotiated sale price? Also, when calculating taxes owed on a lease, would like to check my understanding that this value is based on the depreciated value of the vehicle + any incentives that were applied to the deal? Thanks for the helpful service this forum provides!

Residual is calculated against the MSRP - the bottom line number of the factory window sticker.

Tax on a lease is dependent on the state you are registering the vehicle - what state would that be?

BklynDude

Michaell said:

BklynDude said:

Hi folks. When defining the residual value in a lease, is that value based on MSRP or the negotiated sale price? Also, when calculating taxes owed on a lease, would like to check my understanding that this value is based on the depreciated value of the vehicle + any incentives that were applied to the deal? Thanks for the helpful service this forum provides!

Residual is calculated against the MSRP - the bottom line number of the factory window sticker.

Tax on a lease is dependent on the state you are registering the vehicle - what state would that be?

hi that would be NYS, thanks.

Michaell

BklynDude said:

Michaell said:

BklynDude said:

Hi folks. When defining the residual value in a lease, is that value based on MSRP or the negotiated sale price? Also, when calculating taxes owed on a lease, would like to check my understanding that this value is based on the depreciated value of the vehicle + any incentives that were applied to the deal? Thanks for the helpful service this forum provides!

Residual is calculated against the MSRP - the bottom line number of the factory window sticker.

Tax on a lease is dependent on the state you are registering the vehicle - what state would that be?

hi that would be NYS, thanks.

NY taxes the sum of the payments, any customer incentives, and the non-government fees. That amount is collected up front, or can be added to the selling price and made part of the monthly payment.

For NY, we recommend you pay them up front, as we've learned that if you roll them into the payment, the tax gets taxed. (odd, but true!)