Lease question

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Apr 18, 2000 | 08:21 PM

S4Killa

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Lease question

I am in market for lease. I expect to pay 1st payment and registration. Has anyone comes across a processing fee of 490 and luxury tax of 270??? I wanted to walk out the door paying reg and 1st payment. Just wondering. Is this a bargining point?

Apr 19, 2000 | 04:10 AM

pablo1

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$490 sounds like a bank fee which is legit. The Luxury tax applies to any amount over

$38,000 or $39,000 that the car is sold for not including taxes. I think this is 5%. You should negotiate the selling price just as if you ewre to buy and then ask for the complete breakdown of the lease charges.

Apr 19, 2000 | 07:41 AM

Muhammad

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Re: Lease question

Sometimes the bank fee is worked into the lease rate (not sure with AOA leases) - but all leases have some type of fee like that. Like pablo said, lux tax is legit as well... I thought it was over $36K - and it sounds like $270 is just the lux tax on the total payments, as you pay sales tax. I am not up on the lux tax, but some states allow sales tax to be paid monthly with your payment. You could look into paying the lux tax monthly as well. Also, you didn't mention a secutiry deposit, which can be waived, but is common.

>>Muhammad

Apr 19, 2000 | 10:59 AM

phred

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There's more to leasing than this

Typical fees: Acquisition fee, sales tax, security deposit (refundable or not), down payment, payment due at end of lease.

You should surf and look at some of the lease sites to get a complete list of fees that are typical. You will never walk out paying the amount in the ad (because it doesn't include tax among other things, and at 8.25% here in LA that adds quite a chunk to the monthly).