Find GMC Dealers in Jersey City, New Jersey

aiduane, The best safeguard against being taken by dealer BS is to educate yourself about leasing. Learn the vocabulary, learn how to compute payments, learn how to compute sales tax in your state, and understand what happens on both the front-end and back-end of a lease. A HUGE factor that is often overlooked in lease transactions is the sales tax calculation. On October 1, 2005, New Jersey joined a 22 state coalition and bought into the Streamlined Sales and Use Tax Law. The key points governing sales tax treatment given to motor vehicle leases in New Jersey, under this law, are briefly summarized in the following document… http://www.state.nj.us/treasury/taxation/streamfaqs.shtml This document describes the two methods for computing sales tax in NJ: (1) tax rate x manufacturer’s invoice price (Item 7) and; (2) tax rate x total taxable lease payments; otherwise, known as the total payment method (Item 8) Either way, you can roll the tax (finance) into the lease (see below). More than likely, you’ll want to opt for (2- total payment method) as it is usually the cheaper of the two methods. The best way to illustrate the sales tax calculation methodology and, subsequent lease payment calculation, is to use a concrete example. Because the first method is straight forward, I’ll describe the second using a hypothetical example. What follows is somewhat long-winded, so please hang-in. Consider a lease, originating in NJ, with the following data… Adjusted MSRP………….…… 22,800 Sell Price (S)...…………….…... 20,000 (negotiated) Acq. Fee (A)…………….…….. 650 (Acq Fees are taxable in NJ) Trade Equity (Q)...………..…… 500 (we’ll assume financed negative equity- NOT taxable in NJ) Cap reduction (D)…………...… 600 (assume $600 cash down- taxable in NJ) Cap reduction: trade credit (T).. 1,000 (assumed trade-in allowance- NOT taxable in NJ) Money factor (F)………………. 0.00020 (assumed) Residual Factor………………. 0.68 (assumed) Residual Value (R)…………. 15,504 (Residual Factor x Adj. MSRP) Term (N months)....…………. 36 NJ Sales Tax Rate (t)………… 7.00% (assumed) NJ Sales Tax (X)................... _____ (to be computed... see below) Note that the entire trade-in value of $1,000 is non-taxable in NJ; regardless of the fact that a $1,500 loan balance remains outstanding producing negative equity in the amount of $500. Taxable Payment = F x (C + R) + (C – R) / 36 For purposes of computing the taxable payment, the adjusted cap cost is... C = S + A - T - D = 20,000 + 650 - 1,000 - 600 = 19,050 Taxable Payment = 0.00020 x (19,050 + 15,504) + (19,050 – 15,504) / 36 = 105.41 NJ Sales Tax Payment Liability = X = Total Payment Tax = (t x N x Taxable Payment) = (0.07 x 36 x 105.41) = 265.63 This tax, of course, is due and payable at lease inception. However, if you wish to capitalize it in the lease, the dealer simply adds it as an amount financed and remits the tax to NJ. The taxable payment is NOT the "lease payment". It's only purpose is to compute tax liability and is, therefore, an intermediate calculation. A CASH down payment of $600 made UPFRONT also triggers an additional sales tax liability in the amount of 0.07 x 600 or $42. Now, let's compute the LEASE PAYMENT... The new adj. cap cost is C* = S + A + Q - D + X = 20,000 + 650 + 500 - 600 + 265.63 = 20,815.63 Lease Payment = 0.00020 x (20,815.63 + 15,504) + (20,815.63 – 15,504) / 36 = 154.81 Observe that I rolled the acquisition fee (A), negative equity (Q), and taxes (X) into the lease payment calculation. Of course, you can elect to pay these upfront if you like. Also, note that the only role that the trade-in value plays, in this example, is to compute the taxable payment. Beyond that, it's irrelevant and is not used to compute the lease payment. This is triggered by the fact that money is still owed (which the dealer pays) on the trade. Your intitial costs, payable at lease inception, are assumed to be the the 1st payment of $154.81, plus $600 down, plus the $42 tax on the $600 down, plus any required security deposit, plus DMV fees and dealer doc fees. These upfront charges can also be capitalized in the lease as well. Whatever you choose to do, you should be able to account for every fee charged; capped or otherwise. And, all calculations must be spot-on! You can use the above and apply it to your own situation. For instance, if you don't have a trade or, equity in a trade, simply replace the assigned values above with zero. If you're not putting any cash down, then replace 600 with zero. The most important items in any lease transaction are the money factor/interest rate and selling price. You should always try to get the buy rate (money factor with 0% dealer profit- reserved only for those with the very best credit) and negotiate the lowest possible sell price. Check Edmunds for invoice price information and scan the posts to see what others are paying in terms of sell price. Also, check overstock at zag.com for competitive sell price information in your area. The GMAC SmartLease acq fee is $795. Not sure what US Bank's fee is. Unless I'm mistaken, the $1,000 cash incentive applies to a purchase only and must be financed through GMAC. GMAC also uses an interest rate where US Bank uses a money factor. I don't know the current residuals used by either but, more than likely, US Bank uses an ALG residual. What I do know is that, apparently, a number of complaints have been levied against US Bank. To wit... http://www.consumeraffairs.com/finance/us_bank.html Questions? Please let me know. John PS: Never put money down on a car as it's a depreciating asset. If the car is totaled or stolen and, never recovered, you risk losing a portion or all of your down payment. Down payment means cap reduction and nothing else.

Hey just wondering where in NJ did you get offered this deal? we went to 2 dealerships yesterday in Union NJ & Summit NJ and we weren't impressed with them.. one laughed at us when we said we wanted the basic SLE model with just the entertainment package added on...he said he's never heard ANYONE want 'just the basic' model. so we're looking for dealer recommendations in North Jersey...we're in Maplewood but we're willing to drive to get a good deal. we want SLE basic with RES package for 36 months/12000miles, zero down bar incentives are we crazy thinking we can get this below $430?? also is it common for salesman to just NOT give u the residual or money factor..we kept getting 'its approx..etc etc'

We've just just started out looking at the Acadia & have a few questions... We're in NJ(Maplewood area) so would love to hear feedback on any good deals people have gotten recently in the North Jersey area or close enough. What Residual and money factor where you quoted? & what monthly payment? We're looking for a 36 month lease with 12000 miles, $0 down. Also, as a side note when you are given a residual quote of say 60%..is that 60% of MRSP or 60% of the selling price you agree with the dealer? We're interested in the basic SLE model with added extra of the RES. Just wondering with the RES option do you get a multiple CD changer or are you still stuck with the one CD player that comes with the standard SLE model? And finally, are you able to add leather as an option with the SLE? I don't see it in the spec..but just thought I'd ask. Appreciate your input.. Thanks!

I'm in South Jersey and I'm getting similar #s for '05 Denalis. I think your numbers are in the ballpark.

Well, with many thanks to Wallet, I bought a new Z71. I actually was looking for the vehicle the Whitall bought (LS, 1SK, 17" wheels, flares, 3rd row and side airbags). In nw jersey, the dealer I have done business with before offered me a good deal for nw Jersey (invoice + advertising 1.5% +$50). They all seem to consider advertising as part of the invoice price. Anyway, to make a long story short, I bought at the dealer Wallet suggested. I went or a Z71 with the 2nd row buckets and 3rd row seat. The deal was invoice - holdback. I calculated a savings of $1,800 over my NJ deal if i had price out that vehicle here. My net savings is a little less because of gas to rive up to MA. I pick it up on Saturday. BTW, with incentives such as $5K, $1K Olds loyalty and almost $2,300 GM Card dollars, I got the vehicle that stickers for $44,865 for $30,600.