Absolutely! Check out the spreadsheet below. The payments are nearly equal with an MF = .00108. Try using MF = .00001 and it’s much better to residualize the EV credit. So, for this scenario, MF = .00108 is the breakeven. Anything below it favors residualizing the EV credit. Anything greater, favors using it as a CCR assuming the other variables (e.g., sales tax rate) remain the same.
| Baseline | CCR | Residualize | |
|---|---|---|---|
| Rebate = 0 | Rebate | Rebate | |
| MSRP | 120,000.00 | 120,000.00 | 120,000.00 |
| Sell Price | 110,000.00 | 110,000.00 | 110,000.00 |
| Gross Capitalized Cost | 111,200.00 | 111,200.00 | 111,200.00 |
| CCR | 0.00 | 7,500.00 | 0.00 |
| Adjusted Capitalized Cost | 111,200.00 | 103,700.00 | 111,200.00 |
| Term | 36 | 36 | 36 |
| Money Factor | 0.00108 | 0.00108 | 0.00108 |
| Residual Factor | 58% | 58% | 58% |
| Residual Value | 69,600.00 | 69,600.00 | 69,600.00 |
| Residual Adjustment | 0.00 | 0.00 | 7,500.00 |
| Adjusted Residual | 69,600.00 | 69,600.00 | 77,100.00 |
| Tax Rate | 7.50% | 7.50% | 7.50% |
| Base Payment | 1,350.82 | 1,134.39 | 1,150.59 |
| Monthly Payment Sales Tax | 101.31 | 85.08 | 86.29 |
| Contractual Payment (exclu. capped tax) | 1,452.13 | 1,219.47 | 1,236.88 |
| Monthly CCR Tax | 0.00 | 17.45 | 0.00 |
| Contractual Payment (inclu, capped Tax) | 1,452.13 | 1,236.92 | 1,236.88 |