Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!





Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Did you get a great deal? Let us know in the Values & Prices Paid section!
Meet your fellow owners in our Owners Clubs

KYFDX / MICHAELL: Please Help with Lease Figures

dbs6000dbs6000 Posts: 38
edited March 5 in Chevrolet
Hi KYFDX and MICHAELL,

Can’t thank you both enough for all you do for everyone!

I’m having a hard time figuring this out and your help would be appreciated.

36 Month / 10k Mile Lease
Total Out-of-Pocket: 1st Month Payment + DMV
Everything else rolled-in

MSRP: $48,105
SALES PRICE: $41,370
TERM: 36
MONEY FACTOR: 0.00176
RESIDUAL PERCENTAGE: 70%
BANK FEE: $895
TAX: 8.625%

I’m getting a monthly payment of $403, but I may not be accounting for tax on what I’m told are taxable rebates, which amount to $4,597.

Even if I were to do $4,597 * 8.625% = $396.49 / 36, it’d equal an additional $11 per month, bringing the total to $414 per month.

And even if I were to inch that up to account for interest that may compound on same, it’s still different from the monthly payment the dealer is stating of $440.90 per month.

Please see the attached, which is what the dealer gave me.

Can you please help sort this out for me?

Thank you so very much!

Comments

  • MichaellMichaell ColoradoPosts: 117,963
    dbs6000 said:

    Hi KYFDX and MICHAELL,

    Can’t thank you both enough for all you do for everyone!

    I’m having a hard time figuring this out and your help would be appreciated.

    36 Month / 10k Mile Lease
    Total Out-of-Pocket: 1st Month Payment + DMV
    Everything else rolled-in

    MSRP: $48,105
    SALES PRICE: $41,370
    TERM: 36
    MONEY FACTOR: 0.00176
    RESIDUAL PERCENTAGE: 70%
    BANK FEE: $895
    TAX: 8.625%

    I’m getting a monthly payment of $403, but I may not be accounting for tax on what I’m told are taxable rebates, which amount to $4,597.

    Even if I were to do $4,597 * 8.625% = $396.49 / 36, it’d equal an additional $11 per month, bringing the total to $414 per month.

    And even if I were to inch that up to account for interest that may compound on same, it’s still different from the monthly payment the dealer is stating of $440.90 per month.

    Please see the attached, which is what the dealer gave me.

    Can you please help sort this out for me?

    Thank you so very much!

    Chevrolet Colorado - what trim? Cab style? 4x4 or 4x2?

    The document you attached was a bit short on details in that respect.

    The number you need from the dealer is the adjusted cap cost, which is the selling price plus any taxes or fees you are not paying up front.

    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

  • dbs6000dbs6000 Posts: 38
    Thanks for your most prompt reply, Michaell!

    I think I've since figured it out; I was confusing 'effective selling price' with 'adjusted capitalized cost'.

    Apparently, the cap cost is a figure that doesn't take into account the taxable rebates, meaning the cap cost is higher than the selling price, which is a figure that's after the rebates are applied, which lessen the 'effective cost'.

    Furthermore, the dealer was apparently rolling negative equity into the deal, even though there a check was to be cut to me to off set my final out of pocket to cover the last two payment of my current lease!

    Thanks again; I appreciate it!
  • kyfdxkyfdx Everywhere, USAPosts: 126,124
    dbs6000 said:

    Thanks for your most prompt reply, Michaell!

    I think I've since figured it out; I was confusing 'effective selling price' with 'adjusted capitalized cost'.

    Apparently, the cap cost is a figure that doesn't take into account the taxable rebates, meaning the cap cost is higher than the selling price, which is a figure that's after the rebates are applied, which lessen the 'effective cost'.

    Furthermore, the dealer was apparently rolling negative equity into the deal, even though there a check was to be cut to me to off set my final out of pocket to cover the last two payment of my current lease!

    Thanks again; I appreciate it!

    Gross CAP cost is the selling price, plus any other costs that are rolled into the lease.
    Adjusted CAP cost is the Gross CAP, minus any reductions, including rebates or money paid upfront that isn't allocated to anything else.

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

    Edmunds Moderator

  • dbs6000dbs6000 Posts: 38
    Thank you, kyfdx; two thumbs up! :)
Sign In or Register to comment.