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How to Calculate Monthly Lease Payments

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Comments

  • wche1wche1 Posts: 25
    edited August 2015
    Can anyone help me figure out how sales tax was calculated on the following?
    (New York 8.875%)

    MSRP- 46,422
    Sale price- 42,044.38
    Sales tax- 1,276.74
    Acquisition fee- 700
    Cap cost reduction- 40
    Net cap cost- 43,981.12
    Depreciation cost- 11,949.94
    Residual (69%)- 32,031.18
    Rent charge (0.00115)- 2360.07

    =530.00/mo for 27 month lease

    Anyone help me with how NY tax is calculated please? I know they tax on sum of all payments and any non-dmv fees (only the 700 acquisition fee for this one since I paid doc fees upfront) thanks!
  • kyfdxkyfdx Posts: 144,932
    wche1 said:

    Can anyone help me figure out how sales tax was calculated on the following?
    (New York 8.875%)

    MSRP- 46,422
    Sale price- 42,044.38
    Sales tax- 1,276.74
    Acquisition fee- 700
    Cap cost reduction- 40
    Net cap cost- 43,981.12
    Depreciation cost- 11,949.94
    Residual (69%)- 32,031.18
    Rent charge (0.00115)- 2360.07

    =530.00/mo for 27 month lease

    Anyone help me with how NY tax is calculated please? I know they tax on sum of all payments and any non-dmv fees (only the 700 acquisition fee for this one since I paid doc fees upfront) thanks!

    You answered your own question. $530 X 27 X .08875

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • wche1wche1 Posts: 25
    kyfdx said:

    wche1 said:

    Can anyone help me figure out how sales tax was calculated on the following?
    (New York 8.875%)

    MSRP- 46,422
    Sale price- 42,044.38
    Sales tax- 1,276.74
    Acquisition fee- 700
    Cap cost reduction- 40
    Net cap cost- 43,981.12
    Depreciation cost- 11,949.94
    Residual (69%)- 32,031.18
    Rent charge (0.00115)- 2360.07

    =530.00/mo for 27 month lease

    Anyone help me with how NY tax is calculated please? I know they tax on sum of all payments and any non-dmv fees (only the 700 acquisition fee for this one since I paid doc fees upfront) thanks!

    You answered your own question. $530 X 27 X .08875
    The 530/mo is with tax included. I can't figure out how the dealer got 1276.74 though
  • kyfdxkyfdx Posts: 144,932
    wche1 said:

    kyfdx said:

    wche1 said:

    Can anyone help me figure out how sales tax was calculated on the following?
    (New York 8.875%)

    MSRP- 46,422
    Sale price- 42,044.38
    Sales tax- 1,276.74
    Acquisition fee- 700
    Cap cost reduction- 40
    Net cap cost- 43,981.12
    Depreciation cost- 11,949.94
    Residual (69%)- 32,031.18
    Rent charge (0.00115)- 2360.07

    =530.00/mo for 27 month lease

    Anyone help me with how NY tax is calculated please? I know they tax on sum of all payments and any non-dmv fees (only the 700 acquisition fee for this one since I paid doc fees upfront) thanks!

    You answered your own question. $530 X 27 X .08875
    The 530/mo is with tax included. I can't figure out how the dealer got 1276.74 though
    Again: $530 X 27 X .08875

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • Can you plz help with my monthly lease payment calculation...the online calculators seem to come up with different numbers. The specific formula would be greatly appreciated! Here are my numbers...
    2015 Subaru WRX Premium 6mt, 36 mo./15k lease, NY, MSRP $30,460, Sale price #28,081, tax $1043 (not sure if correct or how this was figured);
    other fees (are these part of cap cost?) title $10, admin $396, Inspection $30, acquisition, 595.
    I would like to know money factor and residual, and exact calculation of lease payment. Also, how much I need to put down upfront to keep payment at $350/mo. Thank you!!!
  • MichaellMichaell ColoradoPosts: 137,035
    larryo_22 said:

    Can you plz help with my monthly lease payment calculation...the online calculators seem to come up with different numbers. The specific formula would be greatly appreciated! Here are my numbers...
    2015 Subaru WRX Premium 6mt, 36 mo./15k lease, NY, MSRP $30,460, Sale price #28,081, tax $1043 (not sure if correct or how this was figured);
    other fees (are these part of cap cost?) title $10, admin $396, Inspection $30, acquisition, 595.
    I would like to know money factor and residual, and exact calculation of lease payment. Also, how much I need to put down upfront to keep payment at $350/mo. Thank you!!!

    36/15 lease numbers on 2015 WRX Premium 6mt - 58% and .00140

    The article at the top of this discussion explains how to build your own spreadsheet to perform the lease calculations.

    We need to know the net cap cost (sale price + fees and taxes) in order to calculate the payment.

    We do not recommend putting money down on a lease - if the car is stolen or totaled, you lose that money.

    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


    MODERATOR

    2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

  • First, my mistake, I meant the MF and residual for 2016, not 2015. I listed all the fees above. Thank you.
  • MichaellMichaell ColoradoPosts: 137,035
    larryo_22 said:

    First, my mistake, I meant the MF and residual for 2016, not 2015. I listed all the fees above. Thank you.

    2016 Subaru WRX Premium 6mt 36/15 - 62% and .00160

    Knowing the fees isn't enough - are you paying them up front or adding them into the sale price?

    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


    MODERATOR

    2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

  • Have agreed to lease a 2016 Subaru Forester. MSRP: $30,337. We agreed upon a price of $28,000. Residual rate is 61%. Money factor is .001. The term is 36 months. No trade in or cap reduction. All taxes and drive away fees will be paid up front, thus will not be included in the lease. When I calculate the monthly payment, I come up with just over $310. The dealer's system quotes just over $327 and they cannot (will not?) detail their numbers. Where's the discrepancy, any ideas?
  • MichaellMichaell ColoradoPosts: 137,035

    Have agreed to lease a 2016 Subaru Forester. MSRP: $30,337. We agreed upon a price of $28,000. Residual rate is 61%. Money factor is .001. The term is 36 months. No trade in or cap reduction. All taxes and drive away fees will be paid up front, thus will not be included in the lease. When I calculate the monthly payment, I come up with just over $310. The dealer's system quotes just over $327 and they cannot (will not?) detail their numbers. Where's the discrepancy, any ideas?

    I get $310/mo as well with the numbers you've provided.

    Ask the dealer for the net cap cost - if higher than the agreed upon selling price, ask them what's been added to it.

    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


    MODERATOR

    2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

  • Mike1BravoMike1Bravo 08081Posts: 26
    What do you suggest if the dealer doesn’t want to provide requested numbers? 
  • MichaellMichaell ColoradoPosts: 137,035

    What do you suggest if the dealer doesn’t want to provide requested numbers? 

    Find another dealer

    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


    MODERATOR

    2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

  • piddlingpiddling ClevelandPosts: 1
    I was checking with the dealer calculations on a car, and he included the sales tax as a part of the net cap cost of a car, is that correct?
  • kyfdxkyfdx Posts: 144,932
    piddling said:

    I was checking with the dealer calculations on a car, and he included the sales tax as a part of the net cap cost of a car, is that correct?

    In Ohio, sales tax is collected upfront for the entire lease. If you aren't paying it upfront, it has to be added to the CAP cost.

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • Mike1BravoMike1Bravo 08081Posts: 26
    In New Jersey where the tax is rolled into the net cap, I’m having a really hard time trying to figure out how to come up with tax amount. Below was a quote I got from a dealer. Could someone give me the breakdown on exactly how they got this number? Thanks. 

    2018 Mazda 6 Signature:

    MSRP: $35,645

    Discount: $2,542

    Vehicle Selling Price: $33,103

    Document Prep Fee: $141

    License/Title: $300

    Acquisition Fee: $595

    Tax Collected (6.625%): $1,034.95

    Total Cap: $35,173.95

    Rebate: $360

    Down Payment ($1,000) - 1st Payment ($437.06) (subtract from cap): $562.94

    Net Cap: $34,251.01

    36 Month Payment: $437.06

    Money Factor: 0.00001

    Annual Mileage: 12,000

    Residual: 52% off of $35,645

    Residual Amount: $18,535.40

  • kyfdxkyfdx Posts: 144,932

    In New Jersey where the tax is rolled into the net cap, I’m having a really hard time trying to figure out how to come up with tax amount. Below was a quote I got from a dealer. Could someone give me the breakdown on exactly how they got this number? Thanks. 

    2018 Mazda 6 Signature:

    MSRP: $35,645

    Discount: $2,542

    Vehicle Selling Price: $33,103

    Document Prep Fee: $141

    License/Title: $300

    Acquisition Fee: $595

    Tax Collected (6.625%): $1,034.95

    Total Cap: $35,173.95

    Rebate: $360

    Down Payment ($1,000) - 1st Payment ($437.06) (subtract from cap): $562.94

    Net Cap: $34,251.01

    36 Month Payment: $437.06

    Money Factor: 0.00001

    Annual Mileage: 12,000

    Residual: 52% off of $35,645

    Residual Amount: $18,535.40

    $437.06 X 36 X .06675 = $1042.

    That's not exact but pretty close. They actually calculate the payment without the tax number added in, and calculate the tax off of the pre-tax payment.

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • mekanismenmekanismen Austin, TXPosts: 8
    Hi all, I'm trying to get a decent deal on a 36month/10k lease for a Subaru Crosstrek Premium with Eyesight.

    I think I've been staring at numbers for too long, or perhaps I'm just too dumb to understand all this stuff. Either way I'd greatly appreciate some help.

    I'm in Austin, TX. I understand that might make things a little more difficult because of taxes but I'm not quite sure how.

    The numbers are as follows:

    MSRP: $27,143
    Selling price (excluding tax): $24,906
    RV: 58%
    MF: 0.00085
    Sales tax: 6.25%
    Acquisition fee: $595
    Government fees: $353
    $0 down.

    If it makes any difference, this is a demo vehicle with roughly 2100 miles on it.

    I just need help understanding what I should realistically be paying monthly, with taxes and everything included.

    Thanks in advance!
  • MichaellMichaell ColoradoPosts: 137,035

    Hi all, I'm trying to get a decent deal on a 36month/10k lease for a Subaru Crosstrek Premium with Eyesight.

    I think I've been staring at numbers for too long, or perhaps I'm just too dumb to understand all this stuff. Either way I'd greatly appreciate some help.

    I'm in Austin, TX. I understand that might make things a little more difficult because of taxes but I'm not quite sure how.

    The numbers are as follows:

    MSRP: $27,143
    Selling price (excluding tax): $24,906
    RV: 58%
    MF: 0.00085
    Sales tax: 6.25%
    Acquisition fee: $595
    Government fees: $353
    $0 down.

    If it makes any difference, this is a demo vehicle with roughly 2100 miles on it.

    I just need help understanding what I should realistically be paying monthly, with taxes and everything included.

    Thanks in advance!

    Living in TX doesn't make the lease calculations more difficult, just more expensive

    In Texas, you pay tax on the entire selling price, even though you are technically just renting it for 3 years. You can choose to pay the taxes up front, or add them into the selling price and make them part of the monthly payment.

    Second, is it $0 down, or $0 due at signing? They aren't the same thing. Down payment (known in lease-speak as cap cost reduction), is money you pay to lower your monthly payment. Monies due at signing may include the cap reduction, but may also include the first lease payment, taxes and fees you are not rolling into the lease payment.

    What we recommend for Texas is that you pay the first payment and the registration costs when you sign the paperwork.

    Therefore, the cap cost is $24,906 + 595 acquisition fee + $1594 tax (on the selling price plus acq fee) = $27,095

    If there is a dealer fee, we have to account for that, too.

    With the MSRP, RV and MF supplied, that equates to a payment of $352/mo. The taxes alone are adding almost $45/mo to the payment.

    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


    MODERATOR

    2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

  • luisilloluisillo Posts: 9
    Hi guys, I'm completely new on this leasing thing and I'd like to figure out what's the minimum monthly payment I can try to negotiate with the dealer for a 2020 Hyundai Palisade. This SUV is a hot seller right now and impossible to get a price below MSRP.

    Can you help me determine what's the cheapest monthly payment I can get for 36/12, $0 down payment. I'm in Houston, TX so I'll get screwed with the taxes.

    MSRP: $38,150.00
    Selling price: $38,150.00
    RV: 59%
    MF: .00158
    Incentive: $750 lease cash
    Sales tax; 6.25%
    Acquisition fee: $595
    $0 down

    Thanks in advanced for your invaluable help
  • stickguystickguy Posts: 35,129
    not sure if it is big enough, but maybe an Infiniti QX60? Or a VW Atlas.

    I thought I heard the Infiniti was a good deal now. No clue about the VW, but at lest they are big!

    2019 Acura TLX A-spec 4 cyl. (mine), and 2013 Acura RDX AWD (wife's)

  • kyfdxkyfdx Posts: 144,932
    luisillo said:

    Hi guys, I'm completely new on this leasing thing and I'd like to figure out what's the minimum monthly payment I can try to negotiate with the dealer for a 2020 Hyundai Palisade. This SUV is a hot seller right now and impossible to get a price below MSRP.

    Can you help me determine what's the cheapest monthly payment I can get for 36/12, $0 down payment. I'm in Houston, TX so I'll get screwed with the taxes.

    MSRP: $38,150.00
    Selling price: $38,150.00
    RV: 59%
    MF: .00158
    Incentive: $750 lease cash
    Sales tax; 6.25%
    Acquisition fee: $595
    $0 down

    Thanks in advanced for your invaluable help

    If you have questions about leasing a Palisade, please post them, here:
    https://forums.edmunds.com/discussion/56677/hyundai/palisade/2020-hyundai-palisade-lease-deals-and-prices#latest

    But, if you are looking for a good deal on an SUV, then picking a popular model that they are asking full MSRP for is not the way to go.

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

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