Lease Calculation

leasenewbie2019

Hello Gurus
Being a newbie and trying to understand the basics of lease calculation and for better negotiations for my new car lease, and being in the market for a new car, I am using this excel sheet to help me. Based on my understanding, there are 3 main factors that drives the lease payments 1) Net Cap Cost 2) Residual and 3)Money Factor
Where Net Cap cost is the negotiated selling price with the dealer including any rebates off of MSRP
This is for a Camry XSE actually based on the agreed upon Selling Price of $27,282 quoted


A MSRP Sticker Price 31634
Incentive / Discount 4352
B Capitaized Cost / Lease Selling Price Adjusted Price 27282
a1 Down Payment 0
a2 Trade in Value 0
C Net Cap Cost B - (a1+ a2) 27282
D Residual Value of the car at the end of the lease.
This is calculated at MSRP --> 60 % 18980.4
E MF / Interest Rate --> 3.02% 0.00126
G Loan Term in months 36
H Lease Documentation Fee / Misc Fee 0

Monthly Lease Depreciation Fee + Finance Fee

Depreciation Fee (C - D) / G 230.60
Finance Fee (C + D) x E 58.29
Payment w/o Sales Tax 288.89
Sales Tax % 8 23.11
Monthly Lease Payment 312.00

So based on above, the monthly lease is 312 per month
I have not incorporated any inceptions or documentation fee or DMV fee in it so all that lets assume would be part of the down payment and the first payment. This should not be more than 1500 to 1800$
Another assumption is that Net Cap Cost is inclusive of 995$ dealer fee

My question is that based on the input numbers and the values, does the calculation seems accurate?
Apparently one of the Toyota dealer told me I am way off and I should not use any calculation based on forums etc and I told him that lease calculation is not a rocket science and is all depended on a few input values and information
He was not very pleased to say the least:)

So I just wanted to get your feedback on this and seek your guidance and assistance to ensure I am using the correct calculation

Thanks in advance for your help

Michaell

leasenewbie2019 said:

Hello Gurus
Being a newbie and trying to understand the basics of lease calculation and for better negotiations for my new car lease, and being in the market for a new car, I am using this excel sheet to help me. Based on my understanding, there are 3 main factors that drives the lease payments 1) Net Cap Cost 2) Residual and 3)Money Factor
Where Net Cap cost is the negotiated selling price with the dealer including any rebates off of MSRP
This is for a Camry XSE actually based on the agreed upon Selling Price of $27,282 quoted


A MSRP Sticker Price 31634
Incentive / Discount 4352
B Capitaized Cost / Lease Selling Price Adjusted Price 27282
a1 Down Payment 0
a2 Trade in Value 0
C Net Cap Cost B - (a1+ a2) 27282
D Residual Value of the car at the end of the lease.
This is calculated at MSRP --> 60 % 18980.4
E MF / Interest Rate --> 3.02% 0.00126
G Loan Term in months 36
H Lease Documentation Fee / Misc Fee 0

Monthly Lease Depreciation Fee + Finance Fee

Depreciation Fee (C - D) / G 230.60
Finance Fee (C + D) x E 58.29
Payment w/o Sales Tax 288.89
Sales Tax % 8 23.11
Monthly Lease Payment 312.00

So based on above, the monthly lease is 312 per month
I have not incorporated any inceptions or documentation fee or DMV fee in it so all that lets assume would be part of the down payment and the first payment. This should not be more than 1500 to 1800$
Another assumption is that Net Cap Cost is inclusive of 995$ dealer fee

My question is that based on the input numbers and the values, does the calculation seems accurate?
Apparently one of the Toyota dealer told me I am way off and I should not use any calculation based on forums etc and I told him that lease calculation is not a rocket science and is all depended on a few input values and information
He was not very pleased to say the least:)

So I just wanted to get your feedback on this and seek your guidance and assistance to ensure I am using the correct calculation

Thanks in advance for your help

I agree with the math.

Dealers don't like it when customers know as much as they do --- gives them no place to hide.

Yes, a lease payment calculation uses nothing more complicated than 4th grade math. Once you have the correct numbers, you're good to go.

leasenewbie2019

Thank you so much
The guy was so confident and adamant that I have it all wrong that I was actually suspecting if I was doing the right calculation

He mentioned that in his 10 years life he only met 2 people who knew the correct calculation
When I asked him what formula he uses, his response was "we have this lease tool from Toyota and we punch in a few numbers and it tells us accurately what the numbers are "

Thanks again