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What am I missing in my lease calculations? LE hybrid

arbor_vitae94arbor_vitae94 Member Posts: 3
edited August 2019 in Toyota
My last discussion was closed. I went to the dealer today to get quotes on an LE RAV4 hybrid.
Members here gave me MF= 0.0022 (Zip 20007) and resid= 67% for a 3 yr/36000 mile lease.
When I estimated monthly payments based on this, I got an estimate of ~$200, but the dealer gave me an estimate of $285/mo! Granted, the estimate was for 3 yr/30000 miles but I would imagine that would only bring monthly payments down.

Could someone let me know what I could be missing? The dealer was able to confirm the 0.0022 MF.

Here are the numbers:
MSRP: $29,959
Sales Price: $27,685
Recent grad discount of $500
Trade in: $500
Confirmed MF: 0.0022
Sales tax: 10.25%
Acquisition fee: $650
Processing fee: $799
Tag fees: $130
With $5000 down (I know this generally isn't advisable, but I have done extensive research and determined it's most important for me to have an extremely low monthly payment for the time being)

Thank you all for your help!

Comments

  • kyfdxkyfdx Moderator Posts: 187,432

    My last discussion was closed. I went to the dealer today to get quotes on an LE RAV4 hybrid.
    Members here gave me MF= 0.0022 (Zip 20007) and resid= 67% for a 3 yr/36000 mile lease.
    When I estimated monthly payments based on this, I got an estimate of ~$200, but the dealer gave me an estimate of $285/mo! Granted, the estimate was for 3 yr/30000 miles but I would imagine that would only bring monthly payments down.

    Could someone let me know what I could be missing? The dealer was able to confirm the 0.0022 MF.

    Here are the numbers:
    MSRP: $29,959
    Sales Price: $27,685
    Recent grad discount of $500
    Trade in: $500
    Confirmed MF: 0.0022
    Sales tax: 10.25%
    Acquisition fee: $650
    Processing fee: $799
    Tag fees: $130
    With $5000 down (I know this generally isn't advisable, but I have done extensive research and determined it's most important for me to have an extremely low monthly payment for the time being)

    Thank you all for your help!

    Do you have the adjusted CAP cost, after the $5000 upfront?

    $27685
    -$1000 (grad/trade)
    $26685
    +$650
    +$799
    +$130
    $28264 Gross CAP

    $5000 upfront
    -$285 first payment
    -$450 upfront tax on CAP reduction (est)
    $4265 CAP reduction

    $28264
    -$4265
    = $23999 adjusted CAP

    $206/mo.+tax = $227/mo.

    Ask the dealer for the adjusted CAP, and how they calculated it.
    I think you'll find there are extra charges they haven't told you about (GAP insurance, etc)
    Also possible that their "Sales Price" already includes the $1000 for grad/trade.

    That's another reason not to make a big downpayment. It clouds the picture, and the actual cost of the lease.

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

    Edmunds Moderator

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