topic Re: TTL costs how much??? in Auto Loans

TTL costs how much???

Wavester64 — Tue, 18 May 2021 12:56:07 GMT

Technically this is a Lease Discussion, so mods feel free to move it if needed.

So I went to a Toyota Dealership to see about leasing a 2021 Corolla Hatchback.

I stuck to my guns from what I read on this forum and said the lease has to be NMD.

He says what about TTL, you want that incorporated into the lease too, I said no, I'll pay for that up front.

He comes back with a quote, and he shows me the TTL for a $28K vehicle is $2800! I was like "what???"

I mean, it's been several years since I leased a car, maybe 10 or so, but even still, the TTL was always around $1000 give or take.

Does that sound right? $2800, almost $2900 TTL? Seems a little ridiculous to me.

Re: TTL costs how much???

Horseshoez — Tue, 18 May 2021 11:09:15 GMT

@Wavester64, based upon the information you've provided, there is no way for any of us to offer an opinion. Why? TTL varies by state, and often by county or even city. Thinking about it though, if you live in a high tax state as well as a state which charges tax on the entire cost of the leased vehicle (some states only tax the depreciation portion of the lease), and then you add dealership fees for Title and License, and yes, I can easily see the TTL portion amounting to 10% of the price of the new vehicle.

Re: TTL costs how much???

Sandman771 — Tue, 18 May 2021 11:40:27 GMT

In Georgia the tax on a vehicle is 7%. Now with a trade in, you can lower this tax amount, but that is what it is. I do believe they changed it with leases where you only pay the tax on the portion of the car you are using. Not sure about that part.

Re: TTL costs how much???

Brian_Earl_Spilner — Tue, 18 May 2021 11:47:22 GMT

TTL has always been about 10% of the car for most everyone.

Re: TTL costs how much???

rostrow416 — Tue, 18 May 2021 12:47:04 GMT

This really depends on your location. If your state charges tax on the total price of the car, then it sounds about right. If your state only charges tax on the total cost of your lease on the car, then it seems excessive.

Re: TTL costs how much???

Horseshoez — Tue, 18 May 2021 13:40:09 GMT

@Brian_Earl_Spilner wrote:
TTL has always been about 10% of the car for most everyone.

Like I wrote before, it depends upon where you live. In New Jersey I leased a $48,000 BMW and TTL came out to only about $1,200, in Illiniois that same TTL figure would have been more like $3,800, here in New Hampshire it was $700.

Re: TTL costs how much???

ldkcivilservant — Tue, 18 May 2021 14:32:41 GMT

I'm also in GA and 10% TTL would not seem out of the ballpark here.

Re: TTL costs how much???

Brian_Earl_Spilner — Tue, 18 May 2021 14:39:09 GMT

@Horseshoez wrote:
@Brian_Earl_Spilner wrote:
TTL has always been about 10% of the car for most everyone.
Like I wrote before, it depends upon where you live. In New Jersey I leased a $48,000 BMW and TTL came out to only about $1,200, in Illiniois that same TTL figure would have been more like $3,800, here in New Hampshire it was $700.

Ok? "Most" doesn't mean everyone, but it's pretty standard based on what I've seen working for Chase and HSBC Auto.

Re: TTL costs how much???

Horseshoez — Tue, 18 May 2021 14:52:21 GMT

@Brian_Earl_Spilner wrote:
@Horseshoez wrote:
@Brian_Earl_Spilner wrote:
TTL has always been about 10% of the car for most everyone.
Like I wrote before, it depends upon where you live. In New Jersey I leased a $48,000 BMW and TTL came out to only about $1,200, in Illiniois that same TTL figure would have been more like $3,800, here in New Hampshire it was $700.
Ok? "Most" doesn't mean everyone, but it's pretty standard based on what I've seen working for Chase and HSBC Auto.

The point we're trying to make is there is nothing even remotely standard about what is an appropriate TTL charge; it varies (often dramatically) by location. As for Chase and HSBC Auto, what do they have to do with this discussion?

Re: TTL costs how much???

sccredit — Tue, 18 May 2021 14:53:12 GMT

Leases are treated differently in different states. In CA sales tax is charged on the monthly payment where only the incentives are taxed up front. On DW's Infiniti lease TT&L was about $1200 and then we pay sales tax on the monthly payment each month. In states like Texas sales tax is charged on the full price up front. So in that case $2,800 would be reasonable.

Re: TTL costs how much???

nycsimone — Tue, 18 May 2021 15:25:11 GMT

$2,800 in TTL doesn't sound abnormal.

You have to consider that most dealerships have a dealer fee of $499-999, DMV fees are easily $300-500 and then the actual taxes on the vehicle vary greatly state by state. On a lease some states just charge sales tax on your monthly payment, some charge you sales tax on the total amount of the payments up front, and some states charge you the full sales tax on the entire cost of the vehicle. With a lease you also have an aquisition fee (bank fee) which is generally $600-900.

Re: TTL costs how much???

dunn2500 — Wed, 19 May 2021 07:38:15 GMT

its not abnormal and dealers will try and get away with whatever they can.....youll have to check your state and see what is "normal" (simple google search should do), its 11% here easily but we also get screwed the most, lol

how they can charge sales tax on a "service" is beyond me......your renting a car and giving it back therefore its not a sale.....its a rental service.....

Re: TTL costs how much???

nycsimone — Wed, 19 May 2021 17:02:31 GMT

A lease is not quite a rental. The vehicle is registered in your name and you have the option to buy it out at anytime for the purchase price minus the payments you've already made towards the car itself (basically your payment minus taxes and minus interest).

Re: TTL costs how much???

Horseshoez — Wed, 19 May 2021 17:33:44 GMT

@nycsimone wrote:
A lease is not quite a rental. The vehicle is registered in your name and you have the option to buy it out at anytime for the purchase price minus the payments you've already made towards the car itself (basically your payment minus taxes and minus interest).

Not exactly; your payments are broken out into cap reduction and interest; when you buy out a lease you pay the purchase price of the car minus the cap reduction; the interest is just that, interest.

Re: TTL costs how much???

nycsimone — Wed, 19 May 2021 19:49:44 GMT

[quote] Not exactly; your payments are broken out into cap reduction and interest; when you buy out a lease you pay the purchase price of the car minus the cap reduction; the interest is just that, interest. [/quote]

That's exactly what I said. The cap reduction is your monthly payment (minus the fees/taxes and interest). So if I have a $500 monthly lease payment and taxes + interest are $100 a month thne the cap reduction is $400. We're saying the same thing.

Re: TTL costs how much???

dunn2500 — Thu, 20 May 2021 06:08:37 GMT

at that time it becomes a purchase but not b4, if that happens i can see tax applied......most peeps give leases back, your renting a car with an option to buy at end of term basically.....

Re: TTL costs how much???

Horseshoez — Thu, 20 May 2021 06:18:37 GMT

@dunn2500 wrote:
at that time it becomes a purchase but not b4, if that happens i can see tax applied......most peeps give leases back, your renting a car with an option to buy at end of term basically.....

And when whas the last time you rented a car without paying any sales or other taxes? I travel a lot and rent cars on a regular basis, and I don't think I've ever rented a car without paying tax.

Re: TTL costs how much???

MitchDeerfield — Thu, 20 May 2021 15:23:20 GMT

With a car lease, you never pay sales tax up front. You should pay it monthly with your lease payment.

Re: TTL costs how much???

Horseshoez — Thu, 20 May 2021 17:25:55 GMT

@MitchDeerfield wrote:
With a car lease, you never pay sales tax up front. You should pay it monthly with your lease payment.

I would argue this too is location dependent.

Re: TTL costs how much???

Sandman771 — Thu, 20 May 2021 17:27:56 GMT

@Horseshoez wrote:
@MitchDeerfield wrote:
With a car lease, you never pay sales tax up front. You should pay it monthly with your lease payment.
I would argue this too is location dependent.

yes in Georgia you pay it all in front. It used to be the whole value of the car not just the leased portion.