* Server response code: 500 We've had a minor breakdown.






We've had a minor breakdown.
The page you were looking for didn't load. Try refreshing the page, or check out our Site Map.







How to Calculate Monthly Lease Payments

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

You are in the Prices Paid - Buying & Leasing Experiences Forum.

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 7 of 18

#59 of 173 leasing help by johnf101

Nov 19, 2010 (6:49 pm)

Hi all!
 
I am not to bright so I am looking to you who are!
 
I am looking at leasing the Honda Accord LX the dealer has three offers:
 
Starting at MRSP at 22,605 with 2000 trade-in to 20,605 at $285 for 3yrs/15K miles per year and nothing down;
 
Starting at MRSP at 22,605 with 2700 discount to 19,905 at $241 for 3yrs/15K miles per year with 1500 down
 
Discounted MRSP to 21,105 with 700 trade-in to 20,405 at $248 for 3yrs/15K miles per year with 1500 down;
 
I cannot figure out what they are doing….???
 
I am reading and studying but I cannot differentiate yet between vehicle price, gross cap price, cap reduction price and adjusted or net cap price?
 
Any help is greatly appreciated.
 
Thanks,
John

#60 of 173 NJ Pilot EX 4WD lease by ayalakay

Dec 21, 2010 (10:13 am)

Hello:
I have been quoted this via email:
 
36 months/12K
Selling price $29,918
MF .001390
Residual 58%
License fee $307
Doc fee $259
"Inception fees" $1932.65 including "DMV fee, tire tax, NJ tax, doc fee" (? would that mean I'm paying all sales tax up front? at 7%)
"Buy out" $19299.50
Monthly payment $380.74
 
I'm not the brightest bulb in the math class but I have been using a lease worksheet I found for Excel and am coming out with a monthly payment closer to $360. I think I may have been calculating the tax incorrectly, but for my life I can't figure it out.
 
Otherwise if you think this might be a good deal, I want to lock him in!
 
Separate question: this is my 4th Honda and 3rd dealer. I am finding that when I go back to my previous dealer, they never seem very interested in my business. (not just Hondas, but previous other mfr leases as well.) Do they not make much commission on leasing? Why do I now have to do all the pursuing, after having received their letters in the mail for the last 6 months begging me to come in? I gave my salesman 4 weeks and when I called to follow up, he had forgotten about me (though he wouldn't admit it) then emailed me a ridiculous quote to which I responded (in a nice way) and haven't heard from him since?
 
any thoughts?

#61 of 173 Re: NJ Pilot EX 4WD lease [ayalakay] by delta737h

Dec 21, 2010 (5:20 pm)

Replying to: ayalakay (Dec 21, 2010 10:13 am)
Greetings ayalakay!
 
You're doing just fine and have raised some good questions. Your 380.74 payment does not capture NJ sales tax which amounts to 959.43. In order to capture this tax, your payment would have to be 408.71. Here is the breakdown of your lease quote based on the information you have provided…
 
MSRP……………………….. 33,275.00
 
Sell Price……………………. 29,918.45
 
Amounts Financed
 
AHFC Acquisition Fee……… 595.00
 
Gross Cap Cost…………….. 30,513.45
Cap Reduction……………… 0.00
Adjusted Cap………………. 30,513.45
 
Money Factor………………. 0.00139
Residual Factor……………. 58%
Residual Value……………. 19,299.50 (Res. Factor x MSRP)
 
Monthly Payment…………. 380.74
 
Amounts Due at Signing
 
1st. Payment………………… 380.74
NJ Sales Tax 7.00%........... 959.43
Doc Fee……………………… 259.00
Doc Fee Tax 7.00%........... 18.13
DMV Fees…………………... 307.00
Tire Fee……………………... 7.50
TOTAL DUE………………… 1,931.80
 
I seem to be $0.85 short of your $1,932.65. Perhaps you rounded a few numbers? I’m guessing that your 360 payment (actually, 363.39) may be the result of not capitalizing the 595 acquisition fee.
 
As for the dealership issues you’re having, I wouldn’t worry about it. They need you more than you need them. The commission on leases is no different than the commission on sales. The reason is that every leased car is a sold car. Someone is buying it and that someone is usually the fund provider (AHFC in your case).
 
Should you have further questions or would like a cost-saving lease proposal that makes sense, please visit my website…
 
www.autoleasegeek.com
 
Hope this helps!
 
John

#62 of 173 Quick Matlab/Octave script by shouravv

Dec 21, 2010 (6:03 pm)

Here is a quick Matlab/Octave script you can use to figure out monthly payments on car or house or anything
 
--------------------------------------
 
function test_mortgage( cost, downpay, rate, year )
 
base = cost - downpay;
 
disp( strcat( [ 'Loan = ' num2str(base) ] ) );
 
pay = 0;
 
for i = 1 : 12 * year
 
     pay = pay + ( ( base / 12 ) * ( ( 1 / year ) + ( ( rate / 100 ) * ( 1 - ( ( i - 1 ) / ( 12 * year ) ) ) ) ) ) ;
 
end
 
disp( strcat( [ 'Interest = ' num2str((pay - base)) ] ) );
 
disp( strcat( [ 'Total = ' num2str(pay) ] ) );
 
pay = pay / ( 12 * year ) ;
 
disp( strcat( [ 'Monthly = ' num2str(pay) ] ) );
 
return
 
--------------------------------------
 
Examples:
 
1. Car for $14,670, $0 down, 5 years 0% APR loan:
 
>> test_mortgage(14670,0,0,5)
Loan = 14670
Interest = 0
Total = 14670
Monthly = 244.5
 
2. $20k credit card balance with 19% APR to be paid off in 3 years:
 
>> test_mortgage(2e4,0,19,3)
Loan = 20000
Interest = 5858.3333
Total = 25858.3333
Monthly = 718.287
 
3. House for $1.2 million, $250k down, 30 years 4% fixed rate mortgage:
 
>> test_mortgage(1.2e6,2.5e5,4,30)
Loan = 950000
Interest = 571583.3333
Total = 1521583.3333
Monthly = 4226.6204

#63 of 173 Re: NJ Pilot EX 4WD lease [delta737h] by ayalakay

Dec 22, 2010 (1:07 pm)

Replying to: delta737h (Dec 21, 2010 5:20 pm)
Many Thanks, John!

#65 of 173 newbie question by karl_e

Jun 02, 2011 (7:34 am)

Hi. I’m new to Edmunds and the knowledge I am gathering is great! Two quick question; is cap cost the same as selling price (minus incentives, down payment, left over from trade in.). Is base lease rate and money factor the same? If I have a base lease rate of 2.0 what am I calculating that with?
 
Thanks.

#66 of 173 Re: newbie question [karl_e] by delta737h

Jun 02, 2011 (9:45 am)

Replying to: karl_e (Jun 02, 2011 7:34 am)
Welcome to Edmunds, karl!
 
Cap cost and sell price are, conceptually, two different things. Let's look at some terminology...
 
The agreed upon value is the FRBB's Regulation M term for selling price. If amounts are capitalized (i.e., financed) in the lease (e.g., acquisition fee, taxes, etc.), then those amounts are added to the agreed upon value. The sum is called the gross capitalized cost. If there are cap reductions (e.g., cash, trade credit, incentives), then these amounts are deducted from the gross cap. The difference is called the adjusted capitalized cost. If there are no amounts financed and no cap reductions, then the agreed upon value, gross cap, and adjusted cap will all have the same value.
 
The base lease rate is that rate with zero dealer profit and is offered to those with outstanding credit. The base rate, AKA buy rate, doesn't mean the dealer doesn't make a profit on the deal. It only means that they don't make a profit on the financing piece. Money factors are generally based on a tiered structure. For example
 
0.00200 + 0% reserves (0 dealer profit)
0.00220 + 1% reserves
0.00240 + 2% reserves
etc...
 
Some fund providers incorporate a fixed dollar amount into their money factors which means that the dealer earns a profit regardless of the money factor. I think American Honda Finance does this but I'm not not sure.
 
A base rate of 2 may mean a money factor of 0.00200 or, it may mean an interest rate of 2%. And so, you need to get clarification. Ally Bank (GMAC) is one of only a few fund providers that uses an interest rate.
 
The money factor is used to compute your monthly payment...
 
Payment = F x (C + R) + (C - R)/N
 
F = Money Factor
C = Adjusted Cap Cost
R = Residual Value
N = Term (months)
 
If you have an interest rate, it can be converted to a money factor approximation by simply dividing the interest rate by 24. So, a 2% interest rate equates to a money factor of approximately 0.02/24 = 0.00083. By the way, money factors are formatted as 0.00XXX.
 
Hope this helps.
 
John
The AutoLeaseGeek

#67 of 173 Re: newbie question [delta737h] by karl_e

Jun 02, 2011 (1:02 pm)

Replying to: delta737h (Jun 02, 2011 9:45 am)
Yes. It cleared up the difference. Thank you for the details.

Messages Page 7 of 18

To POST a message, please Sign In.

Advertisement

Browse by Category

Browse by Vehicle
   View All Vehicles

Browse by Board
Browse by Topic
View All Topics

Edmunds Community

Advertisement