Wondering why this tentative lease agreement shows a capitalized cost reduction of $9894.27 vs. the $10000 Hyundai rebate I was expecting?
Is this the dealer taking some portion of the rebate? or some of it going to tax? It’s 1% off the $10000, so didn’t look like any sort of tax?
Thanks for any help!
Your Section 6(A) fees could be reallocated similar to what was done below…
CCR 5727.53
CCR Tax 587.07
Doc Fee 85.00
Doc Fee Tax 8.71
Acq Fee 895.00
Acq Fee Tax 91.74
Title/Reg. 819.75
1st Payment 785.20
TOTAL FEES 9000.00
TOTAL CREDITS 9000.00
DAS 0.00
This is ONLY AN EXAMPLE. I can do this for you but I would need to see the entire first and second pages of your agreement. I know your sales tax rate is 7%. The question is whether the tax is levied on the individual base payment streams or the total of the base payments. What state will the car be garaged?
There is no reason to pay 1350 at signing. In fact, your lease can be structured so that you have nothing due at signing. Of course, your payment would be more. On the other hand, you can use the 10000 as cap reduction but then you would be paying slightly more than 1350 at signing but your payment would be slightly lower. Or you could cap those fees, including 1st payment, and pay nothing at signing.
No. Some of it is allocated toward the fees listed in Section 6(a).
Bottom line: I wouldn’t be concerned yet. However, I wouldn’t know for sure unless I had more details (1st and 2nd pages).
EDIT: I’m primarily concerned with the agreed upon value (sell price) and the money factor. Did you get the buy rate? What was the dealer discount off MSRP?
They just took some of your rebate to pay for fees to make your DAS 1350…like the prof said you can work the DAS to any number you want.
I promise the dealership isn’t taking $105.73. They just structured the lease this way so your DAS is 1350
In your case
A12 must equal B5
A1 is A12 - A2…A11
that’s pretty much it.
Thanks for that. This is the rest of the numbers. Ioniq 6 Limited RWD, MSRP: $52115. MF = 0.002760 which I figure is average?
Youre a supersupporter, so you have access to ratefindr. Whats buyrate?
Thanks for the detail. I’ll analyze this and get back to you tomorrow.
I have seen the opposite happen as well, where the Cap Cost reduction is higher than the rebate. For example look at this Signed Deal.
In this deal, the Cap cost reduction is 12k, rebate is 10k, and buyer is paying 5k as DAS.
To me, that sounds like the buyer is paying for the difference via the down payment. Can anyone please explain what’s happening in that situation, and why anyone want to do it this way?
it’s a very foolish thing to do. A car is a depreciating asset and is an expense, not an investment. The lessee could lose all or part of the cap reduction in the event that the car is totaled.
Not sure what you mean by average but the money factor for your lease is .00276.
All the calculations in your lease are spot-on except I don’t know why there is sales/use tax of 242.48 in Section 6(A)(8). The tax basis amounts to 3464 @7%. Don’t know where that is coming from… I would question the dealer. Also, the dealer discount of only 2.3% off MSRP seems extremely weak. You may want to visit the LH marketplace to see what your vehicle is selling for as well as TrueCar and Edmunds. And, as @mllcb42 stated, you do have access to ratefindr as a supersupporter… make sure you’re getting the money factor buy rate assuming that you qualify.
