GREENEV said:
1. The dealer couldn't explain on a simple lease why the cap cost reduction numbers are different from mine.
Cap cost reduction(actual): $2599 (down payment)
$7500 (federal rebate)
$XXXX (State rebate) Dealer refused to include the State of CO Innovative Motor Vehicle Credit in the cap cost. Said I had to file with my taxes instead.
total: $10,099.00
Dealer Nissan Signature Lease paperwork
Cap Cost reduction: $9714.00
Now, they couldn't explain for the life of them why there was a difference.
Does $439/month for 48 months with $2599.00 down sound reasonable for a 2012 SL?
The difference in the numbers is because when you lease, the sales tax is added to the monthly payments, not to the total value. The reason for this, is that at the end of the lease, you had paid for the depreciated portion of the vehicle and the tax on that part. The residual has not been taxed, therefore, if you decide to keep the car, you are responsible for the taxes on the residual.
What that means, is that when you put money down on a lease, you need to pay the sales tax on the portion of the car that you are buying that day with your down payment and the federal tax credit (because that is considered income under the law).
During the following 47 months, you will pay the sales tax by bits with every monthly installment.
Even if you were to buy, the $7,500 credit is considered income; so, if you get your credit back in 2013 by filing your 2012 taxes, you need to declare it as income for 2013 when you file your taxes in early 2014. It is just the law.
If you want to reduce your monthly payment a bit, see if you can borrow the state credit from your own savings and use it with the down payment; that way you are not paying to borrow that money from the bank and still get it back with your next tax return.
At last, the monthly payment sounds just a bit high for 48 months. Look at the dealer fees, and title and registration. Is the road tax or ad-valorem tax included, or you still need to pay that when you pick up your plates?
I don't think it is worth walking away just yet.