Originally Posted by lllwlf
They're trying to pull a maneuver.--- They shouldn't be adding sales tax on top of the $104,175. Sales tax is paid on the lease payment and/or any cap cost reduction. Did they give you this in the contract, or over email?
I would guess that when they paper this deal (which you absolutely shouldn't do) they would show your purchase price as $110,400 and that 6K tax line would be much smaller, reflecting the 6% of the net caps you have listed -$2,200 and $750.
Originally Posted by Vic55
He could be living in what is called an "up front state" where tax is paid up front on either a purchase or lease. He will be able to advise better but there are states that require taxes on the full purchase price of a lease.
I'm not sure how DC works, but I ran my calc the way they apply sales tax in NJ - on each individual payment.
Current: 2016 Silverstone M5, 2014 Anvil WW Jeep Wrangler
Previous: 2013 Monte Carlo Blue M5 (ED on 9/1/12), 2009 Carbon Black M5, 2006 Silverstone M5, 2003 Sterling Grey M5, 2000 Anthracite 540i6, 1998 Jeep Grand Cherokee 5.9Ltd, 1990 Eagle Talon TSi AWD, 1978 Mazda RX-7