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Smart Shopper General Questions about Leasing Vehicles
284 messages, Last post on Aug 01, 2009 at 9:50 AM
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| I'm a new first time buyer/lessor. what are the things lease companies loook at in your credit report? what are the chances of me getting approved? what else besides your credit report do they look at? I'm trying to lease an 08 g35 | |
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Looking to lease again now that my 48 months are up. Did I get a fair deal or not with the original lease of my 2004 Cadillac CTS. I've used the pull ahead program and had been in 2 other saturn leases 39 mo, when i heard i was eligible for the Caddy to say the least it was a different car. Here are the facts. Trying to determine the interest rate number one and was I given a fair residual value etc. MSRP: $33,300 L.E.V.: ?? after i provide you the info can you give me the percentage Lease end value: $14007 Lease Term: 48 months Selling Price: $31,620 Cash Cap Reduction:$6438.53 Gross Cap Cost $32219.00 Acq Fee:$595 Adjusted Cap cost: $27294 Lease APR: I don't know?? Pretty sad-can it be figured based on my numbers? Monthly Payment:$345.41 Sales Tax: $957.53 Term: 48 months Rent Charge $3300.98---never heard of this until i just pulled my orig contract?? Depreciation $13278.00 Amount Due at start:$6438.53 Thats how stupid I was to just jump in-wasnt even the color i wanted-but it grew on me. The info on rates and other cost will determine if I use them again. I've learned from this site not to use a large amount for a down payment 4180.00 part of the 6438.00 Thanks Lew |
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Looking to lease again now that my 48 months are up. Did I get a fair deal or not with the original lease of my 2004 Cadillac CTS. I've used the pull ahead program and had been in 2 other saturn leases 39 mo, when i heard i was eligible for the Caddy to say the least it was a different car. Here are the facts. Trying to determine the interest rate number one and was I given a fair residual value etc. MSRP: $33,300 L.E.V.: ?? after i provide you the info can you give me the percentage Lease end value: $14007 Lease Term: 48 months Selling Price: $31,620 Cash Cap Reduction:$6438.53 Gross Cap Cost $32219.00 Acq Fee:$595 Adjusted Cap cost: $27294 Lease APR: I don't know?? Pretty sad-can it be figured based on my numbers? Monthly Payment:$345.41 Sales Tax: $957.53 Term: 48 months Rent Charge $3300.98---never heard of this until i just pulled my orig contract?? Depreciation $13278.00 Amount Due at start:$6438.53 Thats how stupid I was to just jump in-wasnt even the color i wanted-but it grew on me. The info on rates and other cost will determine if I use them again. I've learned from this site not to use a large amount for a down payment 4180.00 part of the 6438.00 Thanks Lew |
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I currently lease a 2006 RSX Type-s until May of 2009. I am paying for 45k miles but I will probably only have about 32k miles when I go to turn my car back in. My residual is $14,128. If I'm 13k miles under, is there anyway I can get equity out of my car? Would I be able to buy the car at the residual and sell it for a higher price (if it's worth more at that time?) rather than just turn it in and lose out? Or would a dealer just give me what it's worth (hopefully more than the residual) and I could use the equity towards a down payment for another car? What is the best way to get value out of my car if I'm turning it in with much less mileage than expected?
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Replying to: mrfurious214 (Feb 29, 2008 3:28 pm) So, chances are that your car won't be worth $14k on a trade a year from now. Private party, should be worth more, but who knows. Remember, in most states you will have to pay sales tax on the residual if you buy out the lease, or sell the car privately. |
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Replying to: mrfurious214 (Feb 29, 2008 3:28 pm) (Caveat: Honda Finance usually quotes the buyuout with sales tax already included.. be sure and ask.) If it is worth more than the buyout, you have some options.. 1) Buy the car, then sell it yourself.. This has some serious drawbacks. First, if you over-estimate what your car is worth, you can take a serious loss (or end up driving a car you don't want). Second, you'll probably have to pay sales tax, before selling it to another person, cutting into any potential profit. 2) Trade the car in to a new car dealer, when purchasing another car. If you really have equity in the car, say it's worth $15K wholesale, and the residual is $13K, then you can pocket the difference. The dealer won't have to pay sales tax, and Honda Finance will sell the car to any licensed dealer for the payoff of the lease. Probably, the chances of the car being worth enough to pull this off are remote. To get a good idea of what the car is really worth, post all the details here: Real-World Trade-In Values Good luck with it! kyfdx visiting host EDIT: Forget about posting over there... the expert just came over here to give you the info!! Thanks, volvomax! |
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Apparently, a number of software developers as well as some fund providers are incorrectly computing lease payments and sales tax in those instances when the first payment and taxes are financed or capitalized in the lease. Basically, I’m describing a sign and drive lease which is an attractive option for many especially when the cost of money is low. The problems occur in states like Ohio that compute sales tax on total payments and collect the tax upfront. Some time ago, I asked a Cleveland/Akron area Acura dealer to provide me with a lease worksheet for a 2007 Acura TSX. I requested that all costs typically paid up front be rolled into the lease or capitalized. This included the first payment, acquisition fee, and taxes. They sent me the American Honda Finance Services (AHFS) Lease Worksheet that detailed all the numbers. The sales person claimed that all calculations were made per instructions given by AHFS. The results tabled below show the AHFS Worksheet detail followed by the Correct Accounting Detail. Agreed Upon Value Selling Price....................................... 27,115.14 Amounts Financed 1st Monthly Payment........ Inclu in sell Price AHFS Acquisition Fee.............................. 595.00 Sales Tax............... 0.06 x 332.25 x 36 = 717.68 Capitalized Costs Gross Capitalized Cost.......................... 28,427.80 Capitalized Cost Reduction..................... 0.00 Adjusted Capitalized Cost...................... 28,427.80 Lease Data Money Factor........................ 0.00127 Sales Tax Rate (Ohio).......... 0.06 MSRP.............. 28,760.00 Residual Factor..................... 0.62 Residual Value............... 0.62 x 28,760.00 = 17,831.20 Term............... 36 Payment Itemization Base Monthly Payment........................ 353.10 Taxable Monthly Payment.................... 332.25 Here is the problem with the AHFS Work Sheet... 1st. The Selling Price includes the capitalized first payment. The sell price, once agreed upon, is FIXED and should NEVER be changed for any reason. It's consecrated ground so to speak. The capitalized first payment should be explicitly identified as an amount financed and NOT embedded or buried in the sell price. I know that many fund providers routinely do this and that's very bad accounting. Deducting 353.10 from 27,115.14 yields the correct selling price (i.e., agreed upon value) of 26,762.04. 2nd. According to the worksheet detail, the taxable payment calculation can be inferred and was computed as follows... 0.00127(26,762.04+353.10+595+17,831.20) + (26,762.04+353.10+595-17,831.20)/36 = 332.25 Observe that the 353.10 payment that already includes tax was used to calculate the taxable payment of 332.25 which, in turn, is used to compute the sales tax as 0.06 x 36 x 332.25 = 717.66 The 332.25 taxable payment is now contaminated with sales tax! And, when multiplied by the sales tax rate, is taxed again. In other words, sales tax is being levied on sales tax. In Ohio, this is illegal. In New York, however, it's perfectly legal. Another issue is that the rolled-in (i.e., capitalized) payment MUST ALWAYS MATCH the calculated payment. Here, there is an obvious inequity between the rolled-in 353.10 and the calculated 332.25. At this stage, only the taxable payment is calculated and so the roll-in payment should be the taxable payment and not the base payment that already includes tax. 3rd. The AHFS Lease Worksheet used 36 instead of 35 as a factor to compute the sales tax. This is clearly inappropriate because the capitalized first payment is being amortized over the term of the lease and so the consumer actually makes 35 payments and not 36 payments. The 35 payment streams have already captured the capitalized first payment. Now, let’s examine the Correct Accounting Detail. This is how the AHFS Lease Worksheet should have been constructed... Agreed Upon Value Selling Price 26,762.04 Amounts Financed 1st Monthly Payment 352.46 AHFS Acquisition Fee 595.00 Sales Tax 0.06 x 331.63 x 35 = 696.42 Capitalized Costs Gross Capitalized Cost 28,405.92 Capitalized Cost Reduction 0.00 Adjusted Capitalized Cost 28,405.92 Lease Data Money Factor 0.00127 Sales Tax Rate (Medina, Ohio) 0.06 MSRP 28,760.00 Residual Factor 0.62 Residual Value 0.62 x 28,760.00 = 17,831.20 Term 36 Payment Itemization Base Monthly Payment 352.46 Taxable Monthly Payment 331.63 1st. Observe that the selling price's virginity is preserved as it should be and that all capitalized items are properly accounted for and reconciled and that the first payment is explicitly disclosed as an amount financed and not hidden or buried in the selling price. 2nd. The taxable payment is reconciled as follows... 0.00127(26,762.04+331.63+595+17,831.20) + (26,762.04+331.63+595-17,831.20)/36 = 331.63 Notice that only taxable items (e.g., acquisition fee) are used as input when computing the taxable payment in Ohio. Also note that the rolled-in taxable payment of 331.63 clearly MATCHES the computed taxable payment of 331.63. The computed and rolled-in payments MUST ALWAYS MATCH! This calculation is an intermediate step and done strictly for the purpose of establishing the taxable payment. Remember that we want to ultimately roll-in that first payment into the lease and so this intermediate step must roll-in the taxable payment as well for consistency. 3rd. Observe that the base payment and taxable payment have changed to 352.46 and 331.63 respectively. If you're thinking about leasing or; if you're in the process of leasing and are concerned about the calculations, feel free to contact me at diffeq  zoominternet.net.
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I posted this in the Nissan Pathfinder section, but it is really a general question on how to calculate a low or no downpayment lease based on a dealer listed lease special. My dealer offered me the following lease deal for a 2008 Pathfinder S. From the research I was able to find, it seems a decent deal (please let me know if I am wrong, I am hitting lease info overload). I don't know how to calculate the monthly numbers to make this a no or little down deal. Can anyone help? Thanks! 24 months lease on Pathfinder S with 12000 miles a year for $179.00 a month plus tax $192.00 total, with the MSRP of $26,680.00 and $3,995.00 down and Residual $18,942.00 Capitalized cost $25,537.00 includes acq. fee, and money factor of 0.00145.
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Replying to: looking4asoob (Mar 24, 2008 8:08 am) |
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Replying to: looking4asoob (Mar 24, 2008 8:08 am) You said... "24 months lease on Pathfinder S with 12000 miles a year for $179.00 a month plus tax $192.00 total, with the MSRP of $26,680.00 and $3,995.00 down and Residual $18,942.00 Capitalized cost $25,537.00 includes acq. fee, and money factor of 0.00145" Given this information, the base payment is... Payment = 0.00145 x (25,537 + 18,942) + (25,537 - 18,942)/24 = 339 which isn't even remotely close to 179 and so, something is missing like the previous poster stated. In order to achieve a 179 payment, the adjusted capcost would have to be 21,820 instead of 25,537 assuming, of course, that all the other info is accurate. I can give you a formula to use for a sign and drive lease but I'll need to know your state and how sales tax is computed as well as your sales tax rate. John
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