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Good evening everyone. If all goes well I will be joining the ranks of Sonata owners by taking delivery of a Black limited with black interior and navigation tomorrow. I'll be leasing, and I have a question that maybe someone could answer for me before I complete the deal.

I met with a finance guy at a dealership tonight and as we were going over some numbers he was trying to demonstrate to me that a higher selling price for a car can actually result in a lower lease payment. He put the selling price into his computer at $1000 more than we had discussed, and then entered what he explained was a tax credit that dealerships have an opportunity to use. The result was a monthly payment about $4 less than when the selling price was lower.

I'm a bit wary about this because I have never heard of such a tax credit. I learned through this process that because of how Illinois charges taxes on leases, the payment is generally higher than in most other states. I don't really care how he works the numbers out, I just don't want to end up owing more on taxes at some point during the lease. Does anyone know anything about such a tax credit being available? If so, is this a legit thing? Thanks in advance to anyone who has the information.
 

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QUOTE (NYFS77 @ Dec 7 2010, 11:47 PM) index.php?act=findpost&pid=377793
Good evening everyone. If all goes well I will be joining the ranks of Sonata owners by taking delivery of a Black limited with black interior and navigation tomorrow. I'll be leasing, and I have a question that maybe someone could answer for me before I complete the deal.

I met with a finance guy at a dealership tonight and as we were going over some numbers he was trying to demonstrate to me that a higher selling price for a car can actually result in a lower lease payment. He put the selling price into his computer at $1000 more than we had discussed, and then entered what he explained was a tax credit that dealerships have an opportunity to use. The result was a monthly payment about $4 less than when the selling price was lower.

I'm a bit wary about this because I have never heard of such a tax credit. I learned through this process that because of how Illinois charges taxes on leases, the payment is generally higher than in most other states. I don't really care how he works the numbers out, I just don't want to end up owing more on taxes at some point during the lease. Does anyone know anything about such a tax credit being available? If so, is this a legit thing? Thanks in advance to anyone who has the information.
I have no idea, but I would recommend you check out another dealer and see if they offer you the same tax credit. You can ask any car dealer, it doesn't have to be Hyundai.
 

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I have only leased one car ever, and I do live in Illinois, and I dont remember hearing anything like that. Obviously, one lease does not make me an expert, but my best advice to you is shop around at another dealer and see what they offer you. Tax offer aside, you should always get at least a couple quotes from different dealers.
 

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Thanks for the replies. This was the only dealership to offer such a credit, but I'll make a few calls and ask the specific question about such an availability. If anyone has had an experience with a credit like this, I'd love to hear about it. I'll let you know if I find out that this is a legitimate bargaining chip or a dealer ploy - maybe it's something that others can explore if it is on the level.
 

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I have leased many GM cars in the past: What your dealer may be doing is raising the buyout at the end of the lease. Instead of for example $8000.00 at lease end he maybe raising it to $9000.00 In one instance I leased a 2008 Olsmobile Aurora which I new I would give it back when the lease ended rather than buying it out so I got the salesman to increase the buyout by $3000.00 and it reduced my monthly payment by about $80.00 per month
 

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As an update, two other dealers have informed me that this is indeed something that is possible. The best explanation I have received thus far is that certain dealerships may have an incentive on a particular car with the leasing company (Hyundai Financial) within which the leasing company will pay part of the sales tax. Because it is the leasing company who is buying the car, they are the ones legally responsible for paying sales tax. They simply pass the cost onto the lessee in most cases. However, some dealerships have a limited number of these incentives available. I am told that it is not available at all dealers, and the numbers are usually quite small.

Edit:Further information -- these credits, I'm told, come when a particular dealership purchases a vehicle from Hyundai Financial off lease. Because the taxes have already been paid on these vehicles, the dealerships wind up with a credit that they can apply to any newly leased vehicle.
 
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