How to Calculate Monthly Lease Payments

wche1 · August 2015

Can anyone help me figure out how sales tax was calculated on the following?
(New York 8.875%)

MSRP- 46,422
Sale price- 42,044.38
Sales tax- 1,276.74
Acquisition fee- 700
Cap cost reduction- 40
Net cap cost- 43,981.12
Depreciation cost- 11,949.94
Residual (69%)- 32,031.18
Rent charge (0.00115)- 2360.07

=530.00/mo for 27 month lease

Anyone help me with how NY tax is calculated please? I know they tax on sum of all payments and any non-dmv fees (only the 700 acquisition fee for this one since I paid doc fees upfront) thanks!

kyfdx · August 2015

wche1 said:
Can anyone help me figure out how sales tax was calculated on the following?
(New York 8.875%)

MSRP- 46,422
Sale price- 42,044.38
Sales tax- 1,276.74
Acquisition fee- 700
Cap cost reduction- 40
Net cap cost- 43,981.12
Depreciation cost- 11,949.94
Residual (69%)- 32,031.18
Rent charge (0.00115)- 2360.07

=530.00/mo for 27 month lease

Anyone help me with how NY tax is calculated please? I know they tax on sum of all payments and any non-dmv fees (only the 700 acquisition fee for this one since I paid doc fees upfront) thanks!

You answered your own question. $530 X 27 X .08875

wche1 · August 2015

kyfdx said:

wche1 said:
Can anyone help me figure out how sales tax was calculated on the following?
(New York 8.875%)

MSRP- 46,422
Sale price- 42,044.38
Sales tax- 1,276.74
Acquisition fee- 700
Cap cost reduction- 40
Net cap cost- 43,981.12
Depreciation cost- 11,949.94
Residual (69%)- 32,031.18
Rent charge (0.00115)- 2360.07

=530.00/mo for 27 month lease

Anyone help me with how NY tax is calculated please? I know they tax on sum of all payments and any non-dmv fees (only the 700 acquisition fee for this one since I paid doc fees upfront) thanks!
You answered your own question. $530 X 27 X .08875

The 530/mo is with tax included. I can't figure out how the dealer got 1276.74 though

kyfdx · August 2015

wche1 said:

kyfdx said:

wche1 said:
Can anyone help me figure out how sales tax was calculated on the following?
(New York 8.875%)

MSRP- 46,422
Sale price- 42,044.38
Sales tax- 1,276.74
Acquisition fee- 700
Cap cost reduction- 40
Net cap cost- 43,981.12
Depreciation cost- 11,949.94
Residual (69%)- 32,031.18
Rent charge (0.00115)- 2360.07

=530.00/mo for 27 month lease

Anyone help me with how NY tax is calculated please? I know they tax on sum of all payments and any non-dmv fees (only the 700 acquisition fee for this one since I paid doc fees upfront) thanks!
You answered your own question. $530 X 27 X .08875
The 530/mo is with tax included. I can't figure out how the dealer got 1276.74 though

Again: $530 X 27 X .08875

larryo_22 · September 2015

Can you plz help with my monthly lease payment calculation...the online calculators seem to come up with different numbers. The specific formula would be greatly appreciated! Here are my numbers...
2015 Subaru WRX Premium 6mt, 36 mo./15k lease, NY, MSRP $30,460, Sale price #28,081, tax $1043 (not sure if correct or how this was figured);
other fees (are these part of cap cost?) title $10, admin $396, Inspection $30, acquisition, 595.
I would like to know money factor and residual, and exact calculation of lease payment. Also, how much I need to put down upfront to keep payment at $350/mo. Thank you!!!

Michaell · September 2015

larryo_22 said:
Can you plz help with my monthly lease payment calculation...the online calculators seem to come up with different numbers. The specific formula would be greatly appreciated! Here are my numbers...
2015 Subaru WRX Premium 6mt, 36 mo./15k lease, NY, MSRP $30,460, Sale price #28,081, tax $1043 (not sure if correct or how this was figured);
other fees (are these part of cap cost?) title $10, admin $396, Inspection $30, acquisition, 595.
I would like to know money factor and residual, and exact calculation of lease payment. Also, how much I need to put down upfront to keep payment at $350/mo. Thank you!!!

36/15 lease numbers on 2015 WRX Premium 6mt - 58% and .00140

The article at the top of this discussion explains how to build your own spreadsheet to perform the lease calculations.

We need to know the net cap cost (sale price + fees and taxes) in order to calculate the payment.

We do not recommend putting money down on a lease - if the car is stolen or totaled, you lose that money.

larryo_22 · September 2015

First, my mistake, I meant the MF and residual for 2016, not 2015. I listed all the fees above. Thank you.

Michaell · September 2015

larryo_22 said:
First, my mistake, I meant the MF and residual for 2016, not 2015. I listed all the fees above. Thank you.

2016 Subaru WRX Premium 6mt 36/15 - 62% and .00160

Knowing the fees isn't enough - are you paying them up front or adding them into the sale price?

marlydarly · October 2015

Have agreed to lease a 2016 Subaru Forester. MSRP: $30,337. We agreed upon a price of $28,000. Residual rate is 61%. Money factor is .001. The term is 36 months. No trade in or cap reduction. All taxes and drive away fees will be paid up front, thus will not be included in the lease. When I calculate the monthly payment, I come up with just over $310. The dealer's system quotes just over $327 and they cannot (will not?) detail their numbers. Where's the discrepancy, any ideas?

Michaell · October 2015

marlydarly said:
Have agreed to lease a 2016 Subaru Forester. MSRP: $30,337. We agreed upon a price of $28,000. Residual rate is 61%. Money factor is .001. The term is 36 months. No trade in or cap reduction. All taxes and drive away fees will be paid up front, thus will not be included in the lease. When I calculate the monthly payment, I come up with just over $310. The dealer's system quotes just over $327 and they cannot (will not?) detail their numbers. Where's the discrepancy, any ideas?

I get $310/mo as well with the numbers you've provided.

Ask the dealer for the net cap cost - if higher than the agreed upon selling price, ask them what's been added to it.

Mike1Bravo · January 2019

What do you suggest if the dealer doesn’t want to provide requested numbers?

Michaell · January 2019

Mike1Bravo said:
What do you suggest if the dealer doesn’t want to provide requested numbers?

Find another dealer

piddling · January 2019

I was checking with the dealer calculations on a car, and he included the sales tax as a part of the net cap cost of a car, is that correct?

kyfdx · January 2019

piddling said:
I was checking with the dealer calculations on a car, and he included the sales tax as a part of the net cap cost of a car, is that correct?

In Ohio, sales tax is collected upfront for the entire lease. If you aren't paying it upfront, it has to be added to the CAP cost.

Mike1Bravo · January 2019

In New Jersey where the tax is rolled into the net cap, I’m having a really hard time trying to figure out how to come up with tax amount. Below was a quote I got from a dealer. Could someone give me the breakdown on exactly how they got this number? Thanks.

2018 Mazda 6 Signature:

MSRP: $35,645

Discount: $2,542

Vehicle Selling Price: $33,103

Document Prep Fee: $141

License/Title: $300

Acquisition Fee: $595

Tax Collected (6.625%): $1,034.95

Total Cap: $35,173.95

Rebate: $360

Down Payment ($1,000) - 1st Payment ($437.06) (subtract from cap): $562.94

Net Cap: $34,251.01

36 Month Payment: $437.06

Money Factor: 0.00001

Annual Mileage: 12,000

Residual: 52% off of $35,645

Residual Amount: $18,535.40

kyfdx · January 2019

Mike1Bravo said:
In New Jersey where the tax is rolled into the net cap, I’m having a really hard time trying to figure out how to come up with tax amount. Below was a quote I got from a dealer. Could someone give me the breakdown on exactly how they got this number? Thanks.

2018 Mazda 6 Signature:

MSRP: $35,645

Discount: $2,542

Vehicle Selling Price: $33,103

Document Prep Fee: $141

License/Title: $300

Acquisition Fee: $595

Tax Collected (6.625%): $1,034.95

Total Cap: $35,173.95

Rebate: $360

Down Payment ($1,000) - 1st Payment ($437.06) (subtract from cap): $562.94

Net Cap: $34,251.01

36 Month Payment: $437.06

Money Factor: 0.00001

Annual Mileage: 12,000

Residual: 52% off of $35,645

Residual Amount: $18,535.40

$437.06 X 36 X .06675 = $1042.

That's not exact but pretty close. They actually calculate the payment without the tax number added in, and calculate the tax off of the pre-tax payment.

mekanismen · November 2019

Hi all, I'm trying to get a decent deal on a 36month/10k lease for a Subaru Crosstrek Premium with Eyesight.

I think I've been staring at numbers for too long, or perhaps I'm just too dumb to understand all this stuff. Either way I'd greatly appreciate some help.

I'm in Austin, TX. I understand that might make things a little more difficult because of taxes but I'm not quite sure how.

The numbers are as follows:

MSRP: $27,143
Selling price (excluding tax): $24,906
RV: 58%
MF: 0.00085
Sales tax: 6.25%
Acquisition fee: $595
Government fees: $353
$0 down.

If it makes any difference, this is a demo vehicle with roughly 2100 miles on it.

I just need help understanding what I should realistically be paying monthly, with taxes and everything included.

Thanks in advance!

Michaell · November 2019

mekanismen said:
Hi all, I'm trying to get a decent deal on a 36month/10k lease for a Subaru Crosstrek Premium with Eyesight.

I think I've been staring at numbers for too long, or perhaps I'm just too dumb to understand all this stuff. Either way I'd greatly appreciate some help.

I'm in Austin, TX. I understand that might make things a little more difficult because of taxes but I'm not quite sure how.

The numbers are as follows:

MSRP: $27,143
Selling price (excluding tax): $24,906
RV: 58%
MF: 0.00085
Sales tax: 6.25%
Acquisition fee: $595
Government fees: $353
$0 down.

If it makes any difference, this is a demo vehicle with roughly 2100 miles on it.

I just need help understanding what I should realistically be paying monthly, with taxes and everything included.

Thanks in advance!

Living in TX doesn't make the lease calculations more difficult, just more expensive

In Texas, you pay tax on the entire selling price, even though you are technically just renting it for 3 years. You can choose to pay the taxes up front, or add them into the selling price and make them part of the monthly payment.

Second, is it $0 down, or $0 due at signing? They aren't the same thing. Down payment (known in lease-speak as cap cost reduction), is money you pay to lower your monthly payment. Monies due at signing may include the cap reduction, but may also include the first lease payment, taxes and fees you are not rolling into the lease payment.

What we recommend for Texas is that you pay the first payment and the registration costs when you sign the paperwork.

Therefore, the cap cost is $24,906 + 595 acquisition fee + $1594 tax (on the selling price plus acq fee) = $27,095

If there is a dealer fee, we have to account for that, too.

With the MSRP, RV and MF supplied, that equates to a payment of $352/mo. The taxes alone are adding almost $45/mo to the payment.

luisillo · January 2020

Hi guys, I'm completely new on this leasing thing and I'd like to figure out what's the minimum monthly payment I can try to negotiate with the dealer for a 2020 Hyundai Palisade. This SUV is a hot seller right now and impossible to get a price below MSRP.

Can you help me determine what's the cheapest monthly payment I can get for 36/12, $0 down payment. I'm in Houston, TX so I'll get screwed with the taxes.

MSRP: $38,150.00
Selling price: $38,150.00
RV: 59%
MF: .00158
Incentive: $750 lease cash
Sales tax; 6.25%
Acquisition fee: $595
$0 down

Thanks in advanced for your invaluable help

stickguy · January 2020

not sure if it is big enough, but maybe an Infiniti QX60? Or a VW Atlas.

I thought I heard the Infiniti was a good deal now. No clue about the VW, but at lest they are big!

kyfdx · January 2020

luisillo said:
Hi guys, I'm completely new on this leasing thing and I'd like to figure out what's the minimum monthly payment I can try to negotiate with the dealer for a 2020 Hyundai Palisade. This SUV is a hot seller right now and impossible to get a price below MSRP.

Can you help me determine what's the cheapest monthly payment I can get for 36/12, $0 down payment. I'm in Houston, TX so I'll get screwed with the taxes.

MSRP: $38,150.00
Selling price: $38,150.00
RV: 59%
MF: .00158
Incentive: $750 lease cash
Sales tax; 6.25%
Acquisition fee: $595
$0 down

Thanks in advanced for your invaluable help

If you have questions about leasing a Palisade, please post them, here:
https://forums.edmunds.com/discussion/56677/hyundai/palisade/2020-hyundai-palisade-lease-deals-and-prices#latest

But, if you are looking for a good deal on an SUV, then picking a popular model that they are asking full MSRP for is not the way to go.

iamrook8 · February 2020

This is super helpful thank you, the only thing that isn't clear to me is everyone in this forum asks for MF, RV, and incentive. I am using your guide to calculate lease payments, but where do I input the incentive?

stickguy · February 2020

Incentive gets factored into the cap cost. Basically a deduction from sale price, similar to buying a car and negotiating a price, then having a rebate subtracted.

Michaell · February 2020

iamrook8 said:
This is super helpful thank you, the only thing that isn't clear to me is everyone in this forum asks for MF, RV, and incentive. I am using your guide to calculate lease payments, but where do I input the incentive?

It depends on the type of incentive.

A factory to dealer incentive ("dealer cash") results in a lower selling price to the customer. It doesn't have to be disclosed to the customer, but once you know about it, you can adjust your price target accordingly.

A factory to customer incentive functions much like a down payment, to lower the cap cost - this is what @stickguy is referring to. If available, the dealer has to give it to you.

weirvinejr · March 2020

Is the delivery charge included in MSRP when calculating lease payments?

stickguy · March 2020

Yes

Nlee1030 · December 2020

Can someone give me feedback on this quote? It’s my first quote and I think it’s cruel. (RV 60% MF 0.00105 $750 incentive). I can probably work the trade in up 1k.

2021 GLA250 fwd
Msrp 39,725
Adj 35,377
Trade in 30,500
Diff 4,877
Lien payoff 32,985.68
Taxes 374.63
Documentation 699
MVWR/title/reg/filing 144.75
——
Balance 39,080.96
$624 monthly $0 for 10k/3yr

Michaell · December 2020

Nlee1030 said:
Can someone give me feedback on this quote? It’s my first quote and I think it’s cruel. (RV 60% MF 0.00105 $750 incentive). I can probably work the trade in up 1k.

2021 GLA250 fwd
Msrp 39,725
Adj 35,377
Trade in 30,500
Diff 4,877
Lien payoff 32,985.68
Taxes 374.63
Documentation 699
MVWR/title/reg/filing 144.75
——
Balance 39,080.96
$624 monthly $0 for 10k/3yr

Probably best if you repost into the specific GLA lease thread, here.

How to Calculate Monthly Lease Payments

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