What am I missing in my lease calculations? LE hybrid

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  kyfdx Moderator Posts: 237,153

  August 2019

  arbor_vitae94 said:

  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.

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