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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
 
10 Steps to Leasing a New Car
 
The "Residual Value" of Leasing
 
Calculate Your Own Lease Payment

Messages Page 15 of 18

#140 of 173 Re: Can anyone point me to an accurate lease formula? [kirstie_h] by bluechunks

Dec 30, 2012 (8:28 am)

Replying to: kirstie_h (Dec 30, 2012 8:19 am)
Oops -
 
Well, then... thanks for the awesome pie we had on Saturday, too!

#141 of 173 Re: Can anyone point me to an accurate lease formula? [bluechunks] by kyfdx HOST

Dec 30, 2012 (9:52 am)

Replying to: bluechunks (Dec 30, 2012 8:28 am)
You added $600 title/registration, and didn't mention the $2000 downpayment... (or, Edmunds calculator did...)
 
I did a straight calculation, based on the parameters you gave me...
 
Cap cost - residual = depreciation which is then divided by the lease term in months..
 
(Cap cost + residual) X money factor = monthly finance charge.
 
Monthly depreciation + monthly finance charge = lease payment.
 
Taxes vary depending on state and rate..

#142 of 173 Re: Can anyone point me to an accurate lease formula? [bluechunks] by qbrozen

Jan 01, 2013 (7:46 am)

Replying to: bluechunks (Dec 30, 2012 8:27 am)
$2k down makes a huge difference, obviously. About $60/mo.

#143 of 173 lease expiring? by steve_ HOST

Jan 22, 2013 (9:11 pm)

A reporter would like to speak to someone who is going to be in the market for a new car in the next few months because their lease is expiring. If you fit this description, please email your daytime contact info to predmunds.com by Friday, January 25, 2013 at noon PT/3 p.m. ET.

#144 of 173 Help getting to the correct payment by stevied32

Jan 26, 2013 (6:29 am)

I was given a quote for a '13 Acadia Denali of $575 w/tax in NJ but after further research I am questioning the deal. I called the dealer and seem to be getting a lot of double talk so I want to confirm my calculations to make sure I have a leg to stand on. Thanks in advance...
 
Here's the deal:
 
MSRP $48795
Base Cap Cost $47564
Rebates $4000
Additional Fees (Acq, Title, etc) $1521
Residual (57%) $27813
Money Factor .00077
Term 39 months
sales Tax 7%
 
Monthly Payment $500 plus tax--NOT SURE WHAT PROPER AMOUNT IS ($34??)
 
The dealer claims they can't get to my number but are not disputing the money factor or residual. They keep talking about the sales tax but don't seem to be making sense to me. Even if sales tax is $34 month I'm still only at $534 not $575. In NJ, is sales tax paid by the lessee on the vehicle upfront? I didn't think it was but maybe I'm wrong and need to add additional money to cost of the vehicle???

#145 of 173 Re: Help getting to the correct payment [stevied32] by delta737h

Jan 26, 2013 (6:46 am)

Replying to: stevied32 (Jan 26, 2013 6:29 am)
stevied32,
 
Need more details. I have no idea what base cap cost means as it is not a term defined in the FRBB's Reg M. I would ask the dealer for their lease worksheet. It will tell you everything you need to know and then some.
 
Here's what is missing...
 
Selling Price
Amounts capitalized in the lease
Gross Cap Cost
Taxable and Non-Taxable Cap Reductions
Adjusted Cap
 
If you can provide this information, I can compute your lease payment to the penny.
 
NJ computes sales tax based on the total of the taxable payments just like in Ohio.
 
J. Clark
TheAutoLeaseGeek

#146 of 173 Re: Help getting to the correct payment [delta737h] by stevied32

Jan 26, 2013 (9:19 am)

Replying to: delta737h (Jan 26, 2013 6:46 am)
The worksheet they gave me is useless as it doesn't list the items as you requested above. I will try to answer your questions the best I can.
 
Selling Price is $47564 (they told me they reduced the MSRP to this amount)
GM is offering $4000 in rebates ( I think this is referred to as Cap Adjustment)So this also needs to be factored into the final selling price.
I don't know how to answer the taxable and non-taxable cap reductions, sorry
All the following fees are to rolled into the monthly payments:
 
Bank Fee $595
Window Etch $239
Tire Fee 7.50
Title $401
Doc Fee $279
 
That's all the info I have so hopefully you can calculate it from this info and the other info in the previous post.

#147 of 173 Re: Help getting to the correct payment [stevied32] by stevied32

Jan 26, 2013 (9:45 am)

Replying to: stevied32 (Jan 26, 2013 9:19 am)
ok, I received the worksheet from the dealer and now they found an even lower money factor. here is the info.
 
MSRP 48795
Base Residual Value 27813
 
CAPITALIZED COST-
Agreed Upon Value (Base Cap Cost) 47564
Upfront Sales Tax/Tax on Cash Cap Cost Reduction 1575
Acq Fee 595
Other 239
Gross Cap Cost 49974
Rebates (cap cost reduction) 2762
Adjusted Cap Cost 47211
 
Monthly payment $540 and that should include tax
 
It appears that they are now not giving me the full $4000 GM rebate. These guys are driving me nuts.

#148 of 173 Re: Help getting to the correct payment [stevied32] by delta737h

Jan 26, 2013 (5:02 pm)

Replying to: stevied32 (Jan 26, 2013 9:45 am)
When I see this...
 
"Upfront Sales Tax/Tax on Cash Cap Cost Reduction 1575"
 
I become very confused Upfront Sales Tax??? Upfront means that it's paid at lease signing. Yet, you show that the "Upfront" Sales tax and tax on the cash cap cost reduction ($1575) is capitalized in the lease as the gross cap is $49,973. I assume you mean that the tax is paid to NJ "upfront" but is capped in the lease. It might be helpful if you could itemize what you're paying upfront.
 
You also stated...
 
"I received the worksheet from the dealer and now they found an even lower money factor."
 
Is that lower than the 0.00077 that you stated previously If so, what's the new lower money factor? 0.00075?
 
Here's what I get given the information you provided...
 
MSRP 48795.00
agreed upon value or sell price 47564.00
total NJ state sales tax (7.00%) 1578.10
acq fee 595.00
Other 239.00
gross cap 49976.10
cap reduction 2762.00
adj.cap 47214.10
residual (57% x MSRP) 27813.15
money factor 0.00077
term 39
payment including tax 555.23
 
Can't imagine how they get a payment of $520 including tax. Something just doesn't seem right. Honestly, the only way I can help you would be if you emailed me your dealer's lease worksheet. Otherwise, I'm guessing.
 
John

#149 of 173 Re: Help getting to the correct payment [stevied32] by delta737h

Jan 26, 2013 (7:06 pm)

Replying to: stevied32 (Jan 26, 2013 9:45 am)
It just occurred to me that you're leasing a GMC Acadia Denali. If you're using Ally Bank as the fund provider, you should have been quoted an interest rate and not a money factor as Ally Bank does not use a money factor. I beieve the current rate is 1.85%. And, unless it has changed, Ally's acq fee is $795. That may be part of the problem.
 
John
TheAutoLeaseGeek

Messages Page 15 of 18

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