# Calculation v calculator question

OK, I’m stumped. I need some help trying to figure out why the Leasehackr calculator doesn’t match the dealer calculation.

Please help with my calculator input. After reading this board, I know putting my trade-in towards the lease may be a bad idea, but I haven’t gotten an updated quote from the dealer yet excluding it.

Here’s the deal:
MSRP (incl. destination charge): \$49,280
Dealer Discount: \$3,980 (8.1%)
Mfg Rebates/Incentives: \$9,400
Lease Term: 24 months
Residual Value: 54%
Money Factor: .00185
Sales Tax: 6.25%

My calculation:
Sale Price (MSRP - Discount): \$45,300
Residual Value (MSRP X RV\$): \$26,611
Adjusted Capital Cost (Sales Price - Mfg Rebates - Cash Down): \$25,900
Depreciation over Lease Term (MSRP - RV): \$22,669
Net Depreciation (Depreciation - Mfg Rebates - Cash Down): \$3,269
Depreciation per Month (Net Depreciation / Lease Term): \$136.20
Lease Rental Charge ((ACC + RV) * MF): \$97.15
Total Payment, pre-tax: \$233.40
Total Payment, post tax (Pre-tax * 1+Tax Rate): \$247.98

Now, the dealer quoted \$215, so I’m a little confused there also, but first let’s deal with the Leasehackr calculator.

MSRP: \$49,280
Selling Price: \$45,300
Months: 24
Residual: 54%
Money Factor: .00185
Untaxed Incentives: \$9,400 (not likely untaxed, but see note below)
Sales tax: 6.25%

Leasehackr calculation: \$72

\$72!!?

What am I missing here?

Now, the calculator assumes that the tax on the incentives is paid upfront, versus rolled into the lease (I don’t see an option to do that), but that alone doesn’t cover the difference.

So … dealer: \$215, me: \$250, Leasehackr: \$72

I’m stumped.

Without seeing your calculator, I’d be willing to bet 2 issues:

• Your calc doesn’t seem to have any fees factored in that the dealer likely does.
• I’d bet you have your LH calc set to \$10000 down payment rather than matching the \$10000 drive-off from the dealer quote

Would also help to specify model, year and trim

Yep. Some of that is it. I got the additional fees from the dealer; they are now in the calcultor.

But I don’t understand the trade-in. On what line should that go?

I also learned that this is not actually a 20K lease … it’s a 15K lease with a prepayment of 10K miles. NFW! That’s coming out of the next quote. If we’re going to pay, we’ll pay at the end.

I’ll get the updated detail from the dealer tomorrow, but if you’ll tell me if I made any other errors in the calculator that would be appreciated.

Thanks,
Scott

Typically, there’s a per mile discount on pre-paying for the miles.

so as predicted, you have an inconsistency here between “drive off” and “down payment”. A large part of the reason your LH calculator is so much less per month is that it has you paying over \$2000 more at the beginning.

Also, going \$10k out of pocket on a lease is a horrible idea. (one pay leases not included)

You can still trade your car in, but please don’t use all \$10k of equity as a down payment. Horrible idea as mentioned above.

Have the dealer use \$1k of your equity to cover drive off’s (or whatever the exact amount comes to) and get them to cut you a check back for the remaining \$9k.

Yes, thanks. But I’m still unclear about where in the calculator to put the trade-in, if not in the downpayment section.

Perhaps best to wait until I get the updated file from the dealer tomorrow.

The drive-off is my trade-in plus first month’s payment. The calculator is including upfront fees and taxes, which I can fix by moving them all to “acquisition fee”. But I can’t figure out how to get rid of the upfront taxes.

I’ll come back once I have a better detailed offer from the dealer. Thanks for your help.

BTW, I intend to do more research on the trade-in. I suspect the better avenue is to pocket the cash and apply it over time to the lease payment, eliminating the risk of losing it should the car be stolen or totalled, and to avoid any taxes related to it.

I plan to revise the lease to do this…I just want to get the calculator fairly close to the actual offer first. Then it’s easy to see the revised numbers by pulling the trade-in out.

BTW, for the person who asked, it’s a 2020 Kia Stinger GT1

Have you read the calculator FAQ?

Why are you trying to wrap your head around a terrible hypothetical (“what if I applied all my equity towards CCR and/or DAS”)?

Just run the calculator with \$0 CCR.