Hi, everyone. TL;DR: How is the money factor calculated? When I do it manually, I get an outrageous number compared to the LH Calculator. Can someone tell me how it’s done? Here’s the specifics. I’m investigating a lease deal in Washington State with a MF of 0.00118 and RV of 0.57% on a 2020 X3…

[image] shinolajla: The MSRP is $78295, and the negotiated price after discounts and lease incentives is $66715. There are fees that total $925 in acquisition and $1117 for bank and dealer fees (not sure of the split). I’m not planning to use any MSDs. The taxable incentives are $3750, and I wil…

Yes, his LH calculator is counting the incentives twice. His manual calculation doesn’t, but it also isn’t taxing the incentives correctly.

[image] shinolajla: $857.33 You also need to remember this is with just 1st payment DAS. The LHC is going to give you a different payment with a different DAS.

Ah, I see. Okay, here is the updated LH calculator that isn’t double-counting the incentives. Now the monthly post-tax cost is $822. That makes more sense.

The money factor of 132/month is still a killer. If I do 7 MSDs, it brings the deal down to $779 post tax. Drive off would be $3366 plus $5600 in MSD cost, so $9k up front. LH score of 8.8 years, so it’s a good deal, but not a tremendous deal.

Do MSDs, the return will be worth it.

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