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

civicsavy341

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.

kyfdx

civicsavy341 said:

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?

civicsavy341

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).

kyfdx

civicsavy341 said:

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.

civicsavy341

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?

Michaell

civicsavy341 said:

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.

civicsavy341

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!