I just went in the dealership today and they said I have to pay TTL on the full value of the car for the $299/mo lease in TEXAS! Is this true?? I thought you only pay tax on the depreciated value. Is TEXAS the only state you have to pay TTL on a full value of the car in a lease??
This guy quoted me:

2004 automatic MSRP $35,570
$299/mo lease
$5,038.11 down(includes TTL)
security deposit $300
TTL annual fee $108.55
TTL Initial fee $83

Is this a good deal? It doesn't look as good as what I'm seeing in this forum. Is the down payment higher for an automatic as compared to a manual transmission?? I didn't know there is a difference.

 

As far as the tax thing - I belive it Texas they are more like ballon note deals with an option for $XXX dollars to walk away at the end.

As far as being a good deal... I guess it depends on the residual and if you plan to keep it or not.

basically (based on 4.25%) you are paying $11,000 over 39 months plus about $3,000 down?? (not including TTL - just leave that out of the math for now)

This means that you are paying $14,000 over 39 months... so what is residual??

I picked up my car for less than $29,000 so that minus $14,000 is around $15,000.

So If the residual is closer to $20,000 and you want to buy it then you will be screwed. The problem with leases is that they are based on retail pay off rather than third party prices or trade. This also keeps you upside down on you car untill the end of the lease to keep you in it. So bascially at the end you are better off turning it in or buying it back after you turn it in...

If you have plans to keep the car or think you may want to get out of it then toss your money down and buy the car through normal financing if you can afford the higher payments.

-marc

 

I just leased one about 2 weeks ago....$316 per month w/$2900 down.
My taxes were added to the monthly payment and were based on the monthly payment, not the depreciated value (Texas may be different). Your down payment appears high because there should be about $2500 in dealer rebates, a cap reduction tax and 1st payment. You should be able to drive away with $3000 or less down and about $315 per month.

I work for an auto finance company and I will ask some of my dealers in Texas tomorrow and will post the answer for you. I would also recommend checking around with several dealers. Some may be eager to move the 2004 model.

 

drunkiq: the residual is listed for $20,274.90. The inital cap cost is $33,352. with $2,500 rebate and $4,247.56 cash cap reduction. This seems normal by comparison. Is the high down payment $5,038.11 possibly due to the tax?

 

the add I saw for the lease back when I got mine said something like $3,000 (plus TT&L) so the 5 big ones sounds about right

But the $20,274 residual makes no sense..

They are saying the price of the car is $33,352.... the invoice is actually $33,147(with conti tires and delivery charge). they get the extra for their paper work stuff....

anyways take the $33,353 and minus $2500 rebate = $30,853 minus the 11,000 (a guess) that you are financing over 39 months = 19,853 minus your $3,000 down = $16,853!!! so why is the residual $20,274????

where did the $3,421 go???

-marc

 

the leases here are @$299.+tax 0 down i think is possible!I was just at the dearler 5-25 & they want to unload their 04 Xfires.You have to pull the rug out make this type of offer & then walk they drop then.Unless you get a great deal on 04's a lease at this time you're better off to get the 05,it will be better if they keep offering the low lease pay ments,if the residual goes down because the used market value then the payments will go higher !So i would make my decision on real #'s outof pocket.Offer them the 299+ no down!

 

Just a little info i saw a used Xfire 5-26 sap.blue,2toneint. auto,very clean no marks,on a lot for $25,950.Been there 1 week so far!

 

yes!

i believe texas and illinois are the only two states that charge sales tax for the entire cap cost of the vehicle when leasing. you are paying up front $2084 in taxes (6.25% of $33,352). which means you are paying $1267 more (6.25% of the residual) than you would if your state's law made sense with respect to what leasing is suppose to afford you - the ability to pay only for the portion of the vehicle you will be using. unfortunately, leasing in tx may not be the best idea because of the tax ripoff. you would essentially be throwing more than 4 months lease payments away. the figure you gave ($5038 down) seems about right. $5038 - $2084 tax - $300 sec dep - $108.55 - $83 = $2462. that's only slightly more than the advertised lease downpayment. and the lowest price advertised lease would make sense to be for the manual trans though some have obtained autosticks for the same price. instead of paying so much up front, which kind of defeats the purpose of renting the car in the first place, why not negotiate to pay $0 down and roll everything else into the lease payment?

 

One other option is alease is taxed for the state, you can try out of TX.I don't think dealers care because it's a DC lease!

 

but he'd still have to register the vehicle in tx where he resides. then he'd have to pay the 6.25% to tx minus any taxes remitted to another state where the vehicle was leased. despite having no income tax, tx is one of those states that thrives on regressive taxes. kind of ironic that if you unscramble texas, you can spell taxes.

 

Does Texas make you register the car if you lease out of state?

 

Unfortunately, Ohio also charges tax on Full amount---at least they do in Franklin County which is Columbus.

 

Greybeard,

I looked up Texas laws on leasing. This is what the article said.

In some states, such as Ohio, you pay sales tax up front on the capitalized lease cost. In other states, such as Texas and Illinois, you actually pay sales tax on the full value of the leased car, not just the leased value, just as if you were buying it. Not fair at all, and another opportunity for more reasonable tax laws in those states.

If you are quoted at $299 with the 5 g's down the deal isn't so bad. I live in California so I'm paying $299 plus $25 in taxes(8.25%) which totals $324 a month. My drive off on the auto was $2600 with registration and license. The dealer tried to con me by saying auto would be $50 a month higher. He also tried to con me by saying I had to pay the taxes on the full value of the car which I knew wasn't valid in Cali from previous leases I've had. Slice it down, you're paying about $1200 more over the term of the lease than I would, which is about equivalent to the tax on the $20,000 residual of the car. Your deal is pretty equivalent to what everyone else is getting. I didn't have to pay security deposit. Also a reminder, all leasees of the Crossfire will have to pay a $300 car disposal fee on the lease if it's not purchased when car is returned.

Nissan 350z leases in my area are going for $500 a month plus tax with $2,500 drive off. This is for the base model too. For the money nothing compares to this lease. People were paying upwards of $600 a month just six months ago to lease a Crossfire. The dealers are still in business to make money so they aren't gonna let them go for free.

 

I think you have to grind them alittle they will give in because the market is full of cars and D.C wants them to be on the road not on the lots!Why else would they be offering the looooow ###SSSSJust remember they are'nt slowing production .

 

I'm in Texas, could I avoid the tax on the full value of the car if I got the car through a dealer in another state?

 

unfortunately, no. you will still owe tx tax of 6.25% on the full price you paid for the vehicle minus any tax you paid to another state.

http://www.window.state.tx.us/taxinf.../faqmoveh.html

 

Rob M,

Thanks for that info. It really comes in handy. You people on this forum are pretty sharp... :-)

Judging from the tax, title & licence.....i could get my crossfire at the end of June.......bling bling ;-)

 

you're welcome.

this forum makes a lot of people sharper. i started off here with a half-empty brain, and now i'm happy to report it's nearly half-full. :lol:

 

I never knew that they charged extra in Texas... I am paying $298 a month plus $18 (6% tax) and I payed $0 out of pocket.. I didn't want the 39 month lease because I will most likely go waaaaay over on miles, but when I quoted a 24 month lease they wanted almost $500 per month...

 

My lease contract doesn't state what the money factor is, but rather a Lease Fee. By using an online calculator I come up with about 1.8% money factor.