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How to Calculate Monthly Lease Payments
173 messages, Last post on Apr 11, 2013 at 2:36 PM
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What is this discussion about? Car Leasing
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The "Residual Value" of Leasing
Calculate Your Own Lease Payment
#155 of 173 Re: Taxes on lease [delta737h] by qbrozen
Feb 19, 2013 (3:07 pm)
Replying to: delta737h (Feb 19, 2013 2:27 pm)
however, is it true that interest is not charged on the tax? So, in effect, it is the same as paying tax on the payment (even if calculated differently, if the end result is the same, it doesn't matter). As long as interest isn't charged on the tax, there is no benefit paying it up front, which was the poster's question. Correct?
- delta737h (Feb 19, 2013 3:25 pm)
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#156 of 173 Re: Taxes on lease [qbrozen] by delta737h
Feb 19, 2013 (3:25 pm)
Replying to: qbrozen (Feb 19, 2013 3:07 pm)
If the tax is capitalized, then it will be subject to interest charges as it is included in the gross cap. Below is a lease I constructed almost two years ago in Ohio... April 11, 2010
2010 Honda Accord LX
Retail Pricing Information
Base MSRP 2010Honda Accord LX AutomaticModel CP2F3AEW .. . 21,855.00
Polished Metallic .. . 0.00
Destination Charge . . .. 710.00
MSRP .. . ... 22,565.00
Selling Price
Agreed Upon Value . 18,884.05
Amounts Financed (Capitalized)
AHFC Acquisition Fee 595.00
Medina Sales Tax
6.50%  36  206.93
..
.. 484.22 Capitalized Costs
Gross Capitalized Cost . 19,963.27
Capitalized Cost Reduction . 0.00
Adjusted Capitalized Cost 19,963.27
Residual Data
Residual Factor .. . . 0.60
Residual Value (Residual Factor Χ MSRP) .. . . . 13,539.00
Cost of Money/Term
Money Factor . . . 0.00127
Term (months) . 36
Lease Payment Itemization
Monthly Lease Payment . .. . . . 221.00
Taxable Monthly Lease Payment .. .. 206.93
Estimated Charges Payable at Lease Origination
License, Title, Registration Fees (estimated) . . ... .. 125.00
Amount Due at Lease Signing .. .. 125.00
Fund Provider: AHFC
GAP Coverage: Included
Annual Mileage Allowance: 12k
Disposition Fee: None
Excess Mileage Charge: $0.15 per mile
- delta737h (Feb 19, 2013 4:01 pm)
- qbrozen (Feb 20, 2013 12:09 pm)
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#157 of 173 Re: Taxes on lease [delta737h] by delta737h
Feb 19, 2013 (4:01 pm)
Replying to: delta737h (Feb 19, 2013 3:25 pm)
This goofy line... Medina Sales Tax 6.50%  36  206.93 .. .. 484.22
from the above post should read...
Medina Sales Tax 6.50% x 36 x 206.93..... 484.22
John
PS: Anything that is capitalized in a lease, taxes or otherwise, is going to be charged interest.
- thngpg3388 (Feb 19, 2013 5:59 pm)
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#158 of 173 Re: Taxes on lease [delta737h] by thngpg3388
Feb 19, 2013 (5:59 pm)
Replying to: delta737h (Feb 19, 2013 4:01 pm)
Thanks for all the info. A little over my head. So paying upfront and paying monthly is essentially the same?
Only asking because I have 2 lease offers: 1 w/ all fees/taxes rolled into monthly payments and the other with much higher upfront costs including tax w/ lower monthly.
the higher upfront cost sounds cheaper in the long run but maybe i'm missing some additional fees.
- delta737h (Feb 19, 2013 7:32 pm)
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#159 of 173 Re: Taxes on lease [thngpg3388] by delta737h
Feb 19, 2013 (7:32 pm)
Replying to: thngpg3388 (Feb 19, 2013 5:59 pm)
Given that a car is a depreciating asset and the cost of money is relatively cheap, I wouldn't part with any money upfront. Just roll it in with the lease. John
- thngpg3388 (Feb 19, 2013 8:26 pm)
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#160 of 173 Re: Taxes on lease [delta737h] by thngpg3388
Feb 19, 2013 (8:26 pm)
Replying to: delta737h (Feb 19, 2013 7:32 pm)
Thanks for the advice!
#161 of 173 Re: Taxes on lease [delta737h] by qbrozen
Feb 20, 2013 (12:09 pm)
Replying to: delta737h (Feb 19, 2013 3:25 pm)
I don't believe the tax is capitalized in NJ. At least, I can't find any evidence that supports that. So that OH lease you pasted, I can see that, if interest wasn't charged on the tax, the payment would be about 60 cents less. AFAIK, if you did that same lease in NJ, the payment would be $220.38.
Maybe I'll see if my sister can bring over her lease contracts we did a few weeks ago so I can take a look.
- delta737h (Feb 20, 2013 12:27 pm)
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#162 of 173 Re: Taxes on lease [qbrozen] by delta737h
Feb 20, 2013 (12:27 pm)
Replying to: qbrozen (Feb 20, 2013 12:09 pm)
Tax can be capitalized at the lessee's request. I have constructed several lease proposals for individuals in the State of NJ over the past three (3) years and have never had a problem with any of the NJ dealerships doing this. They really don't care and neither does the State of NJ. Either way, NJ will receive the tax payment upfront. The fund provider simply advances the dealer the cash to pay the taxes and the lessee re-pays the tax, included in their lease payment, over the term of the lease. If you have any questions about the lease contract, please let me know.
I'll be glad to address them.
John
#163 of 173 Need Help with Payment by javacafe
Feb 20, 2013 (2:26 pm)
I received an offer from a Volkswagen dealer on a 2013 CCMSRP 32890
Sell price 29576
Money factor.00010
Payment of $479/month with $1000 down + fees.
Is this a good deal??
#164 of 173 Re: Taxes on lease [delta737h] by qbrozen
Feb 20, 2013 (2:39 pm)
Replying to: delta737h (Feb 20, 2013 12:27 pm)
I'm having a tough time following your posts. I thought you used the term "capitalized" to mean the total the interest is charged on. The simple question is, "does NJ charge interest on the tax if you don't pay it up front?" I'm saying no, because that's what I've read. Are you saying yes or no?
- kyfdx (Feb 20, 2013 4:36 pm)
- delta737h (Feb 22, 2013 7:18 pm)
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