Lease rate being miscalculated?
I was working with a Porsche dealer who says they use gross cap cost in the lease rate calculation, so (Gcap + RV) x MF. Not only that, they are putting a premium on the 2022 Macan of $5000 and they are adding that to the formula so it’s really (gross cap + $5000 premium + RV) x MF and they are only using MSRP (w/out the $5k) for the RV. I asked them why they aren’t using adjusted Cap cost, and they say quite simply that they don’t do that. Not only that, but the MF they are using is .0026 and I have credit over 850. They are in Long Beach, CA. Are these dealers just doing whatever they want because they know inventory is so low? How are they getting away with this? Or is this fair game? I walked away from the “deal” but wanted to post for educated reactions.
Comments
They have to use the adjusted CAP to calculate the lease. I'll guess you have a communication issue about terminology.
However, no matter the price paid or adjusted CAP, the actual MSRP from the government sticker is used to calculate the residual. That number doesn't adjust, no matter how much they add to the price.
Yes, they can markup the MF, and ask for whatever price they want. You get to decide if you'll pay it, or not.
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Thanks. I understand. But “they have to use the adjusted cap” means they’re doing something illegal, unethical or just aggressive by using the gross plus their “premium” of $5K? I’m putting $5K down and gross is $67,150. So they should not be using $72,150 in the lease rate calc. But again, illegal in some way, unethical or just aggressive? I know I can’t really negotiate the MF.
Using your prices (and a made up residual value).
$67,150 MSRP * 60% residual = residual value of $40,290
Using the adjusted cap cost of $72,150, the depreciation amount then becomes $31,860, which, divided over 36 months, gives a pre rent tax payment of $885.
Aggressive - yes. Illegal? No.
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2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4
I really appreciate you breaking this down with my numbers. Why isn’t my $5K down factored in the monthly pre-rate payment in your example? And the rent in the example you gave above comes out to what?
First payment, acquisition fee, dealer doc fee, license and registration are all paid up front.
Get the breakdown from the dealer.
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2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4