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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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Messages Page 16 of 18

#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

#150 of 173 Taxes on lease by thngpg3388

Feb 19, 2013 (11:38 am)

I'm a little confused regarding taxes on leases:
 
Do we pay tax upfront or as part of the monthly lease payment?
 
I'm in NJ where tax is (i think) paid on total monthly payment but the local acura dealership quoted me a price w/ tax and inception fees upfront.
 
Also- does the lessee pay the bank fees?

#151 of 173 Re: Taxes on lease [thngpg3388] by qbrozen

Feb 19, 2013 (1:07 pm)

Replying to: thngpg3388 (Feb 19, 2013 11:38 am)
in NJ, tax is on the payment.
And, yes, you pay bank fee (also called acquisition fee).
 
You CAN pay tax up front... but I can't see the point. It doesn't save you any money since interest is not charged on the tax.

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

Feb 19, 2013 (1:28 pm)

Replying to: qbrozen (Feb 19, 2013 1:07 pm)
Like Ohio, NJ tax is computed on the sum of the taxable payments. The tax can either be paid upfront by the lessee or the tax can be capitalized in the lease wherein interest is levied on the tax as it would be a part of the adjusted capitalized cost. If your cost of money is low compared with savings rates, it's best to capitalize the tax from a financial perspective.
 
J. Clark
TheAutoLeaseGeek

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

Feb 19, 2013 (1:48 pm)

Replying to: delta737h (Feb 19, 2013 1:28 pm)
Are you certain?
 
Because any lease I've done, I can figure out the base payment and then simply add 7% on top. If total use tax were calculated, then added to the payment prior to adding the interest, wouldn't that give me a very different net payment?
 
EDIT: Found this resource that tells me the tax is not charged interest: http://www.leasetips.com/salestax.htm

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

Feb 19, 2013 (2:27 pm)

Replying to: qbrozen (Feb 19, 2013 1:48 pm)
I'm positive. Most States compute the tax on the payment streams for which tax is payable as payments are received. However, some States like Ohio and NJ compute tax on the sum of the taxable payments. A taxable payment is computed and that, in turn, is multiplied by the lease term (months). This is the tax base upon which the tax rate is levied. NY does something similar. I've written some articles about this on my website. You may want to look at the following article...
 
https://autoleasegeek.com/457/457
 
Questions? Please let me know.
 
John
 
I'm not sure what you mean by net payment. The sum of the taxable payments is used only for purposes of establishing the tax base and levying the tax. The actual tax can be capped in the lease. Naturally, the taxable payment will be different than the regular lease payment if tax is capped.

Messages Page 16 of 18

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