Am I calculating lease numbers correctly? Dealership numbers are way off

civicsavy341civicsavy341 Member Posts: 6
edited December 2021 in Honda
Hi All,

I went to the dealership the other day and when I calculate lease payments with the OTD price, residual, and mf they gave me, I get significantly lower numbers. I know dealerships will lie every which way to get the numbers they want, but when I called them out on it, they were so insistent that their numbers were correct that I started to feel a little crazy. I'm still confident in my calculations, but would like some peace of mind. Are my calculations correct?

Thanks in advance!

The numbers:
Lease for 36 months and 36k miles
2022 blue civic sport sedan - MSRP 24315
Sale price - 24814
Tax - 1550
Fees - 355
OTD - 26719
Residual - 67%
MF - .00115
$0 Down Payment

I get payments of $313/month (w/tax in payments) or $295/month (w/ tax paid upfront)
They get $372/month. I'm not sure if it's tax included, but my assumption is that it isn't.

So in the case that tax is paid upfront, they're almost $80 above my calc. From the way I'm calculating, the only way they could get that number is with a mf of .0025, over double what they told me.

Comments

  • kyfdxkyfdx Moderator Posts: 232,911

    Hi All,

    I went to the dealership the other day and when I calculate lease payments with the OTD price, residual, and mf they gave me, I get significantly lower numbers. I know dealerships will lie every which way to get the numbers they want, but when I called them out on it, they were so insistent that their numbers were correct that I started to feel a little crazy. I'm still confident in my calculations, but would like some peace of mind. Are my calculations correct?

    Thanks in advance!

    The numbers:
    Lease for 36 months and 36k miles
    2022 blue civic sport sedan - MSRP 24315
    Sale price - 24814
    Tax - 1550
    Fees - 355
    OTD - 26719
    Residual - 67%
    MF - .00115
    $0 Down Payment

    I get payments of $313/month (w/tax in payments) or $295/month (w/ tax paid upfront)
    They get $372/month. I'm not sure if it's tax included, but my assumption is that it isn't.

    So in the case that tax is paid upfront, they're almost $80 above my calc. From the way I'm calculating, the only way they could get that number is with a mf of .0025, over double what they told me.

    What is your location?
    The correct MF is .00150
    What is the amount Due at Signing?

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  • civicsavy341civicsavy341 Member Posts: 6
    zip code 78741. First payment due at signing.

    I thought the mf was .0015, so when they told me .00115 I was already a little suspicious. But even with .0015 mf, I still get 309/month (w/ tax paid upfront).
  • kyfdxkyfdx Moderator Posts: 232,911

    zip code 78741. First payment due at signing.

    I thought the mf was .0015, so when they told me .00115 I was already a little suspicious. But even with .0015 mf, I still get 309/month (w/ tax paid upfront).

    Not sure what is up with your calculations, but if you add $1550 tax to the payments, a 36 month lease is going to go up by a lot more than $18/mo. you calculated.

    Assuming your OTD is the adjusted CAP cost, then $345/mo, with just first payment due at signing.

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  • civicsavy341civicsavy341 Member Posts: 6
    Monthly tax would be [monthly depreciation (237) + monthly interest (47)]* .0625 sale tax = 18, no?

    My OTD is including 1550 of taxes. The adjust CAP cost I used was the sales price (24814) + fees (355) = 25169

    Does this clarify things?
  • MichaellMichaell Moderator Posts: 238,005

    Monthly tax would be [monthly depreciation (237) + monthly interest (47)]* .0625 sale tax = 18, no?

    My OTD is including 1550 of taxes. The adjust CAP cost I used was the sales price (24814) + fees (355) = 25169

    Does this clarify things?

    The tax in TX on a lease is calculated agains the entire selling price, then either paid up front or added to the cap cost.

    6.25% of $24,814 is $1551, or $43/mo over 36 months.

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  • civicsavy341civicsavy341 Member Posts: 6
    I see, thank you for the clarification. Even though I was calculating the monthly tax wrong, I wasn't including the tax in my CAP cost, so paying tax upfront should still yield me about 309/month. Which is in line with kyfdx's 345/month estimate less the 43/month tax. Thank you both!
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