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Is my lease math correct and current info for MDX with Tech Package?

TonyMTonyM 11758Posts: 2
edited November 2018 in Acura
Can someone tell me if the math below is accurate - and answer a few questions:

1) Does a cash incentive that I see in posts come off the sale price, hence baked into the capitalized cost? Will the dealer tell you the cash incentive you are getting or I will only get a single amount as an offer? If incentives are already included in what I see as a 'good price' from TrueCar, in my example that would result in $79 more per month.

2) If you multiple the money factor by 12, is that the annualized interest rate?

3) I will be going to the dealer on Black Friday, so I just used sales price from TrueCar, MF, RV and Incentives that I seen in recent posts on this thread. If you have more recent or local knowledge of the aforementioned, please let me know.

Thank you in advance!

Acura 2019 MDX with Tech Package
Zip Code 11758

Sale Price 46,540
Cash Incentives (2,700)
Down Payment -
Capitalized Cost 43,840

MSRP 52,295
Residual Value Factor 58%
Residual Value 30,331

Depreciation 13,509
Monthly Depreciation 375.25

Money Factor 0.0011000
Interest Rate per Year? 1.32%
Interest Charges 82

Monthly Payment $456.84

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Answers

  • kyfdxkyfdx Posts: 148,174
    TonyM said:

    Can someone tell me if the math below is accurate - and answer a few questions:

    1) Does a cash incentive that I see in posts come off the sale price, hence baked into the capitalized cost? Will the dealer tell you the cash incentive you are getting or I will only get a single amount as an offer? If incentives are already included in what I see as a 'good price' from TrueCar, in my example that would result in $79 more per month.

    2) If you multiple the money factor by 12, is that the annualized interest rate?

    3) I will be going to the dealer on Black Friday, so I just used sales price from TrueCar, MF, RV and Incentives that I seen in recent posts on this thread. If you have more recent or local knowledge of the aforementioned, please let me know.

    Thank you in advance!

    Acura 2019 MDX with Tech Package
    Zip Code 11758

    Sale Price 46,540
    Cash Incentives (2,700)
    Down Payment -
    Capitalized Cost 43,840

    MSRP 52,295
    Residual Value Factor 58%
    Residual Value 30,331

    Depreciation 13,509
    Monthly Depreciation 375.25

    Money Factor 0.0011000
    Interest Rate per Year? 1.32%
    Interest Charges 82

    Monthly Payment $456.84

    1) In this case, it's all Acura-to-dealer incentives, so it's all baked into the discount you negotiate.
    2) Multiply the money factor by 2400 to equal the approximate APR.
    Example: .00110 X 2400 = 2.64% APR (though that won't help you calculate the lease payment)
    3) I think Truecar pricing is for purchase. Of the $2700 incentive, $550 is for purchase or lease, while $2150 of it is for lease only. So, the price that Truecar gives you wouldn't include $2150 of the incentive.
    You can also check Edmunds pricing, here:
    https://www.edmunds.com/tmv.html

    You aren't calculating the finance charges properly.
    (Adjusted CAP cost + Residual) X MF = monthly rent/finance charge.

    In your example, that is:
    ($43840 + $30331) X .00110 = $81.58/mo.

    Your conversions gave you the same number, but the whole point of the money factor is that the conversion is done for you. It's a simple equation.

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

    Edmunds Moderator

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