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How to Calculate Monthly Lease Payments

173 messages,  Last post on Apr 11, 2013 at 2:36 PM

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What is this discussion about? Car Leasing

Dissecting the Deal - How To Spot a Good Lease
 
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The "Residual Value" of Leasing
 
Calculate Your Own Lease Payment

Messages Page 18 of 18

#164 of 173 Re: Taxes on lease [delta737h] by qbrozen

Feb 20, 2013 (2:39 pm)

Replying to: delta737h (Feb 20, 2013 12:27 pm)
I'm having a tough time following your posts. I thought you used the term "capitalized" to mean the total the interest is charged on. The simple question is, "does NJ charge interest on the tax if you don't pay it up front?"
 
I'm saying no, because that's what I've read. Are you saying yes or no?

#165 of 173 Re: Taxes on lease [qbrozen] by kyfdx HOST

Feb 20, 2013 (4:36 pm)

Replying to: qbrozen (Feb 20, 2013 2:39 pm)
NJ collects the tax upfront...
 
If you wish your bank to pay the tax and then add the amount to your capitalized cost, then you will certainly pay finance charges on that amount...
 
NJ doesn't care.... they always get it upfront...

#166 of 173 Awww by bwaa

Feb 21, 2013 (12:03 pm)

ARRRGH I WISH I HAD READ THIS POST BEFORE I LEASED MY SUBARU FORRESTER AHHHH :'(

#167 of 173 Re: Taxes on lease [qbrozen] by delta737h

Feb 22, 2013 (7:18 pm)

Replying to: qbrozen (Feb 20, 2013 2:39 pm)
NJ does not charge interest on the tax if it's not paid upfront because they're not the entity that funds the lease. It's the fund provider that charges interest on the tax if it's not paid upfront because the tax is financed (capitalized) in the lease. NJ does not finance leases. Banks and manufacturer finance subsidiaries (e.g., American Honda Finance, etc.) finance leases.
 
John
TheAutoLeaseGeek

#168 of 173 Re: Taxes on lease [delta737h] by qbrozen

Feb 23, 2013 (8:52 am)

Replying to: delta737h (Feb 22, 2013 7:18 pm)
I didn't actually mean the state of NJ. I meant in NJ. I am well aware NJ isn't charging interest like a lender.

#169 of 173 Help on getting monthly payments right by sepi60

Mar 18, 2013 (3:00 pm)

Hello everyone:
  
So, I'm trying to practice my calculations before going to the dealer today, but something doesn't add up. For the lease special offered at:
  
http://www.bmwusa.com/standard/content/Vehicles/2013/X1/xDrive28i/
  
with MSRP of $38,345, $725 Acquisition fee, $750 loyalty rebate, and $3,624 first month (including $2500 down, $725 acq. fee and $399 first month payment), I get monthly payments of $412 (pretax and excluding license and reg), when I use 0.0013 for money factor and 0.6 residual factor for 10,000 miles per year. (these are the values currently offered by BMW financials).
  
Here is my calculations:
Net Cap Cost = 38345 (MSRP) + 725 (acq. fee) - 2500 (down payment) - 725 (acq. fee paid upfront) - 750 (loyalty rebate) = 35095
  
Month depreciation = (35095-23007)/36 = 336
Interest = (35095+23007)*.0013 = 76
  
Total = 336+76 = 412
 
The only way that I can $399 seems to be if I include first month payment in "cap cost reductions", to bring the net cap cost down to $34696, which reduces the monthly depreciation to
$325 and the finance charge to $75 (total ~$400). But including first month payment in the "cap cost reduction" doesn't make sense to me. If I do that, should I then divide the total depreciation by 35 instead of 36 (since one month is already paid)?
 
Am I missing something?
  
Thanks much

#170 of 173 Re: Help on getting monthly payments right [sepi60] by kyfdx HOST

Mar 18, 2013 (5:30 pm)

Replying to: sepi60 (Mar 18, 2013 3:00 pm)
What you are missing is the selling price of the vehicle... You aren't going to pay MSRP, are you?
 
There is an unspecified dealer discount in the advertisement...

#171 of 173 Re: Help on getting monthly payments right [kyfdx] by sepi60

Mar 18, 2013 (5:44 pm)

Replying to: kyfdx (Mar 18, 2013 5:30 pm)
Thanks kyfdx.
 
No, in reality I will negotiate and get (hopefully) a much better price than MSRP. I was just trying to practice to get the numbers posted on their website right.
 
So, there's a hidden discount somewhere. That makes much more sense.

#172 of 173 How frequently are incentives changed on leases? by melech37

Apr 09, 2013 (7:16 pm)

I was planning on leasing a Volkswagen CC probably next month, But when I look at the very substantial incentives ($3500) available in April I'm feeling some pressure to do it now. I'm concerned that VW may not extend the incentive into May.
Does anyone know what rationale the car makers use in keeping or pulling incentives from month to month? Is there any public source that can accurately estimate the next months deals?
 
Melech

#173 of 173 Re: How frequently are incentives changed on leases? [melech37] by kirstie_h HOST

Apr 11, 2013 (2:36 pm)

Replying to: melech37 (Apr 09, 2013 7:16 pm)
Here's our VW CC Lease Questions discussion:
http://townhall-talk.edmunds.com/WebX/.f1ba668/565
 
However, there is NO source that can tell you what next month's incentives will be. These aren't published anywhere because they would influence buying patterns, and also, because sometimes incentives are based on previous months' sales.

Messages Page 18 of 18

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