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How Do I Calculate Monthly Lease Payments?

199 messages,  Last post on Nov 02, 2009 at 6:41 AM

You are in the Smart Shopper Forum. Your Hosts are kirstie_h & tidester

What is this discussion about? Car Leasing


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#170 of 199
Re: Gas Guzzler tax [richz] by tidester HOST
Mar 16, 2009 (9:10 am)
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Replying to: richz (Mar 16, 2009 4:21 am)

Lenders will not residualize the gas guzzler tax, i.e. the tax will not be part of the vehicle's residual value. "To figure the tax, multiply the partial payment by the tax rate in effect at the time of the payment." (IRS)
 
tidester, host
SUVs and Smart Shopper
#171 of 199
Re: Gas Guzzler tax [tidester] by richz
Mar 18, 2009 (4:29 am)
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Replying to: tidester (Mar 16, 2009 9:10 am)

I'm not sure how that IRS stipulation clears up anything, but I'd like to report that you are wrong. I have confirmed with both BMWFS and MBFS that the gas guzzler tax is residualized by them, and it is indeed up to the lender. Unfortunately, there is a lot of "authoritative" misinformation on this topic which is why it was so hard to find an answer.
#172 of 199
Re: Gas Guzzler tax [richz] by grandtotal
Mar 18, 2009 (6:36 am)
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Replying to: richz (Mar 18, 2009 4:29 am)

I have confirmed with both BMWFS and MBFS that the gas guzzler tax is residualized by them
 
Interesting, if I were a lender I would not residualize gas guzzler tax. I don't see the point because it's residual value tends towards zero very rapidly after you drive the car off the lot. I guess you do what you have to do to keep selling cars.
#173 of 199
Re: Gas Guzzler tax [grandtotal] by kyfdx HOST
Mar 18, 2009 (6:56 am)
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Replying to: grandtotal (Mar 18, 2009 6:36 am)

They can adjust for it on the other end of the equation.. Just lower the residual percentage to hit the same number...
 
It's probably just to simplify things for the dealerships.... Since the tax is on the Monroney sticker, they don't have to do any adjustments..
 
regards,
kyfdx
visiting host
#174 of 199
Re: Gas Guzzler tax [richz] by tidester HOST
Mar 18, 2009 (10:22 am)
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Replying to: richz (Mar 18, 2009 4:29 am)

I have confirmed with both BMWFS and MBFS that the gas guzzler tax is residualized
 
Confirmed? Where? Got a link?
 
I suspect the GGT was subtracted from the total sticker prices (i.e. it was not residualized) as this reference (item #19) suggests.
 
tidester, host
SUVs and Smart Shopper
#175 of 199
Re: Gas Guzzler tax [tidester] by richz
Mar 18, 2009 (3:48 pm)
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Replying to: tidester (Mar 18, 2009 10:22 am)

I confirmed with multiple dealers and in one case I calculated the lease payment myself with the assumption that the GGT would be residualized and my payment calculation matched to the dollar with the dealer's quote. Furthermore, Tarry, who runs the website you linked to, told me that it is indeed lender dependent.
#176 of 199
Re: Gas Guzzler tax [richz] by tidester HOST
Mar 18, 2009 (8:30 pm)
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Replying to: richz (Mar 18, 2009 3:48 pm)

Well, great! Glad we got that settled.
 
tidester, host
SUVs and Smart Shopper
#177 of 199
Re: The Return of "How to Calculate Monthly Lease Payments" [golic] by jstlookin
Apr 09, 2009 (7:50 am)
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Replying to: golic (Feb 26, 2006 7:43 am)

I know its been a while since you posted this, but would you mind e-mailing me your spreadhseet?
 
Thanks golic!
#178 of 199
Re: The Return of "How to Calculate Monthly Lease Payments" [jstlookin] by golic
Apr 09, 2009 (8:50 am)
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Replying to: jstlookin (Apr 09, 2009 7:50 am)

I would if I had your email!!!
 
Send me an email to my user name carspace.com and I will get you that spread sheet.
 
Or click on my user name and hit the email..

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