Hello Hackers, helping a friend to get a lease. Got a quote for 2017 MINI Cooper Hardtop. Wondering if there’s any space for improvement.
MSRP $26,095
Selling Price $22,666.42 ( includes AARP $500 discount)
36 months
$647.65 dues at signing (1st month payment + DMV + doc fee)
12,000 miles per year
MF: .00176 without the $925 ACQ Fee(raise from .00146 to .00196) & AARP Discount(-0.0002)
Residual : 65%
Tax: 9.25%
Monthly payment before tax : $227.48
Monthly payment with tax : $249
Other mini experts might know better about the deal and price overall but the MF thing to do with ACQ fee looks weird. Base MF is 0.146 regardless of paying that up front or rolling it in to payments.
Regardless, I would pay the ACQ up front and get the payment down - otherwise they are paying interest on it for no reason (unless they can’t afford to pay it, but then they should reconsider leasing at this kind of cost all together and look for something cheaper)
If none of that matters, roll ACQ in and make the base MF 0.00146. With discount AARP to 0.00126.
If up front costs aren’t an issue, consider MSDs also (security deposits that are returned at the end of the lease)
Zip code is 94539
So far the new quote that I got is:
MSRP $26,095
Selling price $22,666.42 including AARP Discount
24 months
12,000 miles per year
.71 residual
.00127 with AARP Discount and 7 MSD reduction
$647.65 total due + MSD($2100)
$224.80 per month plus tax.
MF is marked up by 0.0001 for it to be 0.00127, but you aren’t getting the MF rate that MSDs give you - should be 0.00077 when all said and done. (With their mark up it would be 0.00078)
Pay the acquisition fee upfront if you have the 925 to hand as that will make the best overall rate for you (otherwise you are paying interest on 925 for the period of the lease and you don’t have to, it’s a sunk cost regardless)
Once that’s corrected you should be at $147 before tax, circa $160 after tax at 9%
I tried to reconstruct the numbers and for some reason still can’t come close to your number($147 before tax). I used the lease calculator to get these numbers. Can you tell me which part did I do is wrong?
Thanks in advance.
/*
MSRP $26,095
Selling price $22,666.42 including AARP Discount
24 months
12,000 miles per year
.71 residual
.00077 with AARP Discount and 7 MSD reduction
Total due at sign: $647.65(DMV($306.95)&Doc($80)&First month($223)) + MSD($1750) + Acquisition fee ($925) +tax on cap ($90)
$204 per month plus tax. after tax is $223
*/
