Yeah…that.
If it’s not on the window sticker I have never found a case where it was able to be residualized (i.e. you must pay for it all as part of the lease). In other words the RV for such additional options is 0%.
If msrp is $34040 and the rv is 49%, the rv should be (and is) $16679.60
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There are a couple banks that make some weird exceptions for a few dealer added accessories, but this is almost always true.
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Yeah, and it is a bummer that this is the case. There have been a few times where I would have loved to have had a few dealer installed accessories put on the car before I picked it up (factory GM Performance/Toyota TRD/BMW Performance type stuff ) but the RV of 0% precluded it 
The appearance package is not on Window sticker. I believe it is some unnecessary junk like stripes, weather coating they add.
So if that can’t be residualized then most likely explanation is they played around with incentives to get me the right payments but maximized dealer profit?
Thanks again.
True incentives are generally fixed, but they could play around with their sales price (in other words the dealer discount) to show a larger discount from MSRP to account for the dealer add on. In this case the ubiquitous (and usually ridiculous) “appearance protection plan”.
This type of stuff happens all the time…The same thing just occurred on GM lease I signed Saturday. The dealer may want to show more of a profit in one part of their business and they are willing to show a loss in the other part. To the end customer (us) it doesn’t matter.
Can you post your contract? Would be easier to tell what they’re doing with the actual sheet.
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Thanks for that. Yeah I figured that’s what probly occurred on this as well. I am getting more comfortable that it was not a last minute add on that will hurt the me when I turn it in, in 3 years.
If you want to have some fun forensic accounting this morning, head over to the contract I posted in the Camaro LT1 post from earlier this morning, LOL.
In my experience, so many times this is a last-minute add-on. In my case they knew there was zero chance I was going to take it, so they told me at signing they would add it and deduct the equivalent amount from the sales price (so nothing changed on my end). Clearly, they wanted to show the sale of a finance add on more than they wanted the profit from the sales department.
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It looks to me like they probably just discounted the vehicle more than the national program, but built some profit back in with the appearance package. There isn’t any gotchas here that’ll come back to haunt you at the end of the lease.
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Thank you so much. That sounds like a big relief. i will take possession tomorrow and looks like the contract is fine based on feedback from experts on the forum.
The reason for this is because dealer installed options are not trackable in the auction data lenders use to set RVs. Auction data is aggregated by VIN and the most granular set of data at the VIN level is the build data from the factory. Anything added on at the port or dealer is not (usually) contained on the window sticker or the VIN data. Subaru is the one exception where several of their factory options are installed at the port and listed on the window sticker.
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Well @RVguy…We need to do something about this LOL
I’m sure the dealers would love it, beautiful way to buy manufacturer supported accessories/performance parts at full retail prices😁
You are correct that anything installed at the dealer does not affect the residual, but port installed accessories are usually factored into the residual since they are considered factory options. I will use BMW since it is a popular make here. Anything coming from Germany can have accessories added at the U.S. port that will be on the window sticker. So floor mats, carbon fiber parts, exhaust, winter wheel sets, etc. I did this with my M4 (there is a “hidden” list of port installed options that only dealers have access to). On the flip side, those same accessories on anything built in South Carolina are dealer installed accessories since there is not a U.S. port for those SUVs. Therefore, they would not appear on the window sticker and not factor into the residual. This was the same when I worked for Audi and why used car managers want the all weather floor mats or roof racks back if they are on the window sticker.
Like so many things with hypothicals, it depends. There are no absolutes
If it’s on the Monroney, it can usually be residualized (IIRC bmw has a cap on wheels and how much can be capitalized).
For imports that come through a port, who have port options, are allowed to generate a new Monroney before it’s allocated, the captives usually allow those to be residuized.
Only J VINs AFAIK with Chase, not the 1 VINs, correct? Mazda also allowed this when Chase was captive, not certain since they switched to TFS.
I learned not long ago from @Cody_Carter that Toyota allows some dealer-installed accessories be residualized. So you probably could have in that instance.
I just walked through an example of this the other day, where we also rehashed what can be residualized/amoritized:
But generally means just that, ymmv (assuming you pay attention to port of entry, captive rules, etc).
I would have loved that…Dealer told me no no no no. They would have have loved to sell me extra marked up TRD stuff, LOL. But, maybe there was way to do it that they just werent aware of.
Just as well that it didnt work out though as I sold the truck to Carvana a year in (during the great Carvana Taco Sell Off of this summer), and Im sure I wouldnt have received much over the already crazily inflated offer I did**
**I guess it wasnt inflated as Carvana flipped the car in a week for $2300 over what they paid me, plus who know how much $ in financing.
AFAIK the only dealer installed items that TFS will partially residualize are wheels (up to $2k of the MSRP), side steps and possibly bed liner which TMS was lobbying hard for when I was there.
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