Last post on Nov 14, 2013 at 11:30 AM
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What is this discussion about?
Dissecting the Deal - How To Spot a Good Lease
10 Steps to Leasing a New Car
The "Residual Value" of Leasing
Calculate Your Own Lease Payment
#185 of 194 Trading owned car in and want to lease a car, taxes question?
Sep 28, 2013 (10:32 am)
I would like to trade in my car in and lease a new car. New job, less money, better benefits. I do still owe money on the car but have about 13-14k equity in the car. Would like to use a little of the money towards a new car lease and pocket rest of the money so I can supplement my income. I know that you get less for trading in vs. selling privately, but to add the tax to the trade-in amount to see if it is worth it just to sell privately.
Question is, for the amount of money I will receive for my trade-in, the tax on the amount will far surpass the amount of taxes on the lease. What happens with the excess taxes? Applied to the lease? Or will I loose it? Thanx!
#186 of 194 Re: Trading owned car in and want to lease a car, taxes question? [steamroll9]
Oct 08, 2013 (5:48 am)
You don't buy the car that you are leasing, you do not own it. Thus there is NO tax advantage for trading in. In most states, you pay sales tax each month on the actual lease payment. In Texas, where I live, the leasing company pays the sales tax (on the entire purchase price) up front and then expects you to pay it back to them.
You might want to do a google search and see how it works in the state where you live. But in no case (that I am aware of) do you get a "tax advantage" for trading in.
#187 of 194 Re: Trading owned car in and want to lease a car, taxes question? [ohenryx]
Oct 08, 2013 (6:54 am)
well, I can say in NJ you do. If I trade in a car worth $14k on a lease where I'm financing $14k in depreciation over the life of the lease, I don't pay tax on that depreciation cost.
To answer the OP (I thought I answered this very question already... maybe in a different discussion): there is no excess tax refund because it isn't a refund, it is a credit, therefore it can never go less than zero.
#189 of 194 Re: How to Calculate Monthly Lease Payments [Kirstie@Edmunds]
Oct 30, 2013 (2:24 pm)
First of all, thank you so much for the info on how to calculate the lease payments.
I made a spreadsheet to run the numbers given the MF, Residual %age, Cap Cost etc.
Some of my numbers are coming out off from what I am reading on this forum. I would really appreciate if you can glance over the following image and let me know what am I doing wrong, will take just a couple of mins. The calcs are here: http://imgur.com/mKfzR8Q
#190 of 194 Re: How to Calculate Monthly Lease Payments [zkay]
Oct 30, 2013 (2:41 pm)
Don't mean to steal Kirstie's thunder but your first column calculations look just fine unless your inputs are incorrect. Where are you seeing discrepancies?
#191 of 194 Re: How to Calculate Monthly Lease Payments [delta737h]
by Kirstie@Edmunds HOST
Oct 31, 2013 (11:27 am)
Steal away, John! I have no thunder, LOL. Calculating lease payments is out of my area of expertise, or even basic competence. I leave it to you experts to provide good info.
#192 of 194 2014 santa fe sport awd turbo with tech package 5 lease
Nov 08, 2013 (5:41 pm)
The dealer said $400/month for a 36 month/12k miles/year with zero down
Is this good ?
Is this fair ?
Does it mean anything without any other numbers like cap cost and residual and all that ?
Thank you in advance for your answers, all !
Please let me know if I need to get certain info from dealer to share with you so you can answer more accurately.
I appreciate it. Please reply soon as I'm supposed to be signing in a couple of days.
#194 of 194 Lease cost BMW320i xdrive
Nov 14, 2013 (11:30 am)
Hello, what is the monthly cost of leasing a 2014 BMW 320i xdrive in Mineral Grey Metallic with the Premium Package and heated front seats. Price of vehicle is $36,042.97 with a money factor of .00125 and a 52% residual. Only paying taxes and fees totalling $2,800. Your help is greatly appreciated.