Building a Motor Vehicle Lease ... Data Collection and Calculations

Wiki
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Here is a synopsis of the subject matter content in the below pdf…

  1. Researching and organizing data using a tabular matrix useful in creating a comprehensive professional-looking one-page lease proposal.
  2. Optimal treatment of rebates and capitalized cost reductions (CCR).
  3. Formulas for calculating payments and the CCR.
  4. Creating the lease inception fee matrix.
  5. Creating the lease proposal.
  6. Suggested strategies that dealers can’t resist.
  7. A final look… finding the least cost lease.

Building a Motor Vehicle Lease- Data Collection and Calculations.pdf (403.6 KB)

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Needs be stickied !
Awesome compilation which would help a lot of members (specially newer members) on learning how to calculate deals without just throwing a dart in the air.

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Many thanks for your kind comments. I hope it gets a lot of views.

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Don’t forget - ???s

:joy:

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Great compilation, good work !

Tutuapp

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Thanks for your kind words and encouragement.

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This is gold. I have my own calculator on an excel that I’ve updated over the years but this is way more structured and actually shows the calcs. :clap:

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Many thanks for your kind words. :smiley:

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I took a look at this based on your suggestion. Very interesting and seems quite useful.

Looking at the CCR calculation. What is R? All the other variables are labeled throughout, but I couldn’t figure out what R was. I tried plugging in residual value (labeled as RV) but my lease inception fees didn’t quite add up as cleanly as yours did.

EDIT: I think I flipped a + for a - somewhere. I’m getting the expected numbers now!

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Thank you for pointing that out… my bad. Yes, R is the residual value… forgot the V.

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Hi @delta737h, thanks for sharing this. It is an interesting read and great refresher. I’m trying to recreate your CCR calculation in Excel (below) and my answer is a bit off. My formular might be wrong, but do you have an Excel formular template you could share?

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Your formula is incorrect. Input the formula exactly the way it is written below with cells named appropriately…

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I don’t have an excel spreadsheet. I use Mathematica instead. Sorry.

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Hi @delta737h . Thanks for this. It’s been a huge help. How would I alter the calculations to include DAS? I’m trying to see how that changes monthly payments.

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No need to use the CCR formula. You’ll need to capitalize all the upfront fees including first payment. This will require a formula that capitalizes the first payment which depends on how your state computes taxes.

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I think he needs a little spoon feeding here

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Yes, thank you. I do need a bit more help. I don’t run lease calculations daily, and have to re-learn how to make a good deal every couple of years when my lease comes up. Before coming across this thread a month ago, I had never heard of a CCR.

I just received a lease quote from a dealer with a $5k down. It’s a shit offer, but I want to see how it compares to the calculation I did with the CCR formula for my ideal numbers, so I can see where it differs and see if mine is a fair price.

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wow！！！Many thanks for your kind comments

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Start with the calculator and try structuring your deals in different ways - zero DAS, first month DAS, etc. If you already have a car in mind, join super supporters to get access to the actual programs.

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What a wealth of information here. Thank you so much. My head is spinning while trying to calculate the CCR so my DAS is zero though. I’m not sure I need it. Maybe you could help…

I’m in NH where there is no tax. Can I skip the CCR formula and just calculate the monthly base payment?

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In the CCR formula, just set tax rate = 0. Any other ???, let me know. Glad to help.

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