Lease Calculation total interest paid for lease

bigtex66bigtex66 Charlottesville,VAMember Posts: 6
edited August 2020 in Porsche
I'm trying to assess cost of lease vs buy. I used your step by step lease calculation

911 Carrera S Build $ 134,970.00
Acquisition Fee $ 1,095.00
Other Fees TTL / Processing $ 711.00
Flow Discount $ (6,748.50)
Purchase Price $ 128,221.50
Due At Signing $ (17,684.12)

Term 36
Money Factor 0.0029
Interest Rate 6.96%
Residual Rate 59%
Tax Rate 4.15%
Residual Value $79,632.30
Gross Capital Cost $ 128,932.50
Capital Cost Reduction $ (15,000.00)
Adjusted Capital Cost $ 113,932.50
Depreciation Amount $ 34,300.20
Base Payment $ 952.78
Rent Charge $ 561.34 (this is the total interest per month correct?)
Pre-Tax Pmt $ 1,514.12
Monthly Payment $ 1,589.12

Comments

  • kyfdxkyfdx Moderator Posts: 187,266
    bigtex66 said:

    I'm trying to assess cost of lease vs buy. I used your step by step lease calculation

    911 Carrera S Build $ 134,970.00
    Acquisition Fee $ 1,095.00
    Other Fees TTL / Processing $ 711.00
    Flow Discount $ (6,748.50)
    Purchase Price $ 128,221.50
    Due At Signing $ (17,684.12)

    Term 36
    Money Factor 0.0029
    Interest Rate 6.96%
    Residual Rate 59%
    Tax Rate 4.15%
    Residual Value $79,632.30
    Gross Capital Cost $ 128,932.50
    Capital Cost Reduction $ (15,000.00)
    Adjusted Capital Cost $ 113,932.50
    Depreciation Amount $ 34,300.20
    Base Payment $ 952.78
    Rent Charge $ 561.34 (this is the total interest per month correct?)
    Pre-Tax Pmt $ 1,514.12
    Monthly Payment $ 1,589.12

    You are correct about the Rent Charge. That is the monthly amount.

    The base MF is .00200 MF. .00290 is a huge markup

    Edmunds Lease Calculator
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    Edmunds Moderator

  • bigtex66bigtex66 Charlottesville,VAMember Posts: 6
    I have not started the lease. im months away as the car is ordered but i can come back here to get MF rates.. great.. would dealer markup or Porche Financial ? want to keep an ey on that
  • bigtex66bigtex66 Charlottesville,VAMember Posts: 6
    edited August 2020
    I pasted the text but can you look over the assumptions i have for calculating a lease. This is for a lease in Virgina.

  • kyfdxkyfdx Moderator Posts: 187,266
    edited August 2020
    bigtex66 said:

    I pasted the text but can you look over the assumptions i have for calculating a lease. This is for a lease in Virgina.

    The lease acquisition fee is not part of the MSRP. You seem to have it confused with the Destination Fee.
    Porsche Finance (PFS) sets the money factor and the residual.
    Dealers can markup the MF for extra profit.

    In VA, sales tax is levied against the full selling price of the vehicle, and collected upfront.

    Dealers in VA are likely to charge a large dealer/doc fee.

    Your math is good.

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

    Edmunds Moderator

  • bigtex66bigtex66 Charlottesville,VAMember Posts: 6
    edited August 2020
    So i pay tax for the entire car vs. just what I'm leasing? so my tax payment is way to low?

    Meaning my to calculate the monthly payment I have to take Purchase price x 4.15% = $5321.19 and divide that by lease term = 36. Which is 147.81 per month? or is it have to paid up front
  • bigtex66bigtex66 Charlottesville,VAMember Posts: 6
    what states near by have a better tax system? paying tax on entire car for something im not owning and keeping only 3 years seems outrageous. Then if i wanted to buy the lease out i bet i would have to pay the tax again
  • kyfdxkyfdx Moderator Posts: 187,266
    bigtex66 said:

    So i pay tax for the entire car vs. just what I'm leasing? so my tax payment is way to low?

    Meaning my to calculate the monthly payment I have to take Purchase price x 4.15% = $5321.19 and divide that by lease term = 36. Which is 147.81 per month? or is it have to paid up front

    Correct. Paid upfront, but you can roll that amount into the CAP cost.

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

    Edmunds Moderator

  • kyfdxkyfdx Moderator Posts: 187,266
    bigtex66 said:

    what states near by have a better tax system? paying tax on entire car for something im not owning and keeping only 3 years seems outrageous. Then if i wanted to buy the lease out i bet i would have to pay the tax again

    A lot of states tax the monthly payment, but most are at a higher rate. MD and TX tax the full price at 6% and 6.25% respectively, so it could always be worse.

    Write your local representative.

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

    Edmunds Moderator

  • tampaguy26tampaguy26 Member Posts: 19
    bigtex66 said:

    I have not started the lease. im months away as the car is ordered but i can come back here to get MF rates.. great.. would dealer markup or Porche Financial ? want to keep an ey on that


    Just my 2 cents, but putting $15,000 down on a lease is bad business.
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