2021 Subaru Forester Touring
$500 loyalty coupon
$1000 down total out of pocket
Dealer told me a higher payment of $393.87 which I don’t understand how they are getting it. Ive confirmed MF and residual. What am I missing?
Your DAS doesn’t match your comments.
If you’re looking for assistance, burying your questions in the notes section of the calculator is going to make it very difficult to get it.
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***Edited to show notes section.
First months payment was added into the summary of the calculator. Do I need to subtract first months payment from my $1000 down payment first to reflect the difference?
Dealer discount looks weak. Should aim for about $1600 under invoice.
The 500 loyalty coupon is not taxed.
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Your notes show that the dealer is charging $1000 due at sale, not a $1000 cap cost reduction in addition to other drive offs. That’s why your calculator is showing $1441 due at sale. The easy way to fix this is to just to change the down payment amount to get the due at sale to read $1000. That’d be a down payment amount listed closer to $550 (you could also get to the correct number by being sure you’ve capitalizing the same fees that the dealer is based on what boxes you check at the bottom next to the fees).
Adjusted here to show a total of $1000 out of pocket. But still not getting why dealer quoted me a payment of $393.87.
At least we’re getting closer to finding the problem.
Are you sure your selling price did not already include the incentives? Are your gov fees correct? $31 seems incredibly low, although I may just be tainted from my time in CA.
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From dealer:
Your MSRP is $37,008, new sale price is $33,780, residual is still 62%, money factor is still 0.00085.
Doc fee is $230, CVR is $24, registration $15, title $16. Payment $393.87. I just added registration and title to get gov fees. Are there more im not aware of?
Strong likelihood that they’re including your incentive in this sales price already since it doesn’t appear to be itemized. Your calculator is double counting it. Still doesn’t account for 100% of the discrepancy, but closer still.
I wish I knew how to figure out why they have a $30 difference in payment. Its not like I can take the leasehackr calculator in with me to the F&I office and ask why the numbers do not match. Or can I?
You can likely do the calculations on a piece of paper in front of the F&I person. As evidenced by the calculator, a lease is pure math, and based on only a few variables:
- Residual Value - What the bank thinks the car is worth at the end of the lease term. RV is fixed by the bank.
- Money Factor - Interest rate. Base rate is set by bank, but dealers can mark it up.
- Adjusted Cap Cost - Negotiated sales price, subtracting incentives and any down payment (stick to $0). You can add fees to Cap if you’re inclined.
Monthly Depreciation = (Adj Cap - Residual Value)/Lease Term
Monthly Interest = (Adj Cap + Residual Value) X MF
Pre-Tax Monthly = Monthly Depreciation + Monthly Interest.
If you don’t feel comfortable doing the calcs, you can always download the Leasematic app on your iPhone as it will do the above. In my opinion, knowing and showing a dealer that you are facile at math puts you in a strong position. You may not consummate the deal because the dealer may still press for more profit. But if you accept it, at least you know what you’re signing up for as to total amount for the lease term.
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Ask them to send you a copy of the contract ahead of time so you can review it outside the F&I office
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Ok I did both. I downloaded leasematic app and I did it on paper. On paper is so much clearer. I’m getting a pretax payment of $349.19. I didn’t do anything with the $500 loyalty coupon or the $1000 down payment. I figured it without applying either. So for them to get a $393 payment including tax doesn’t add up. Salesperson said I can go over numbers in the f&i office and did not grant my request for a copy of contract to see ahead of time.
Then walk away
I asked. F&I will be going over all the numbers with me. I have all my numbers as well. Not sure why that monthly payment is different but we will find out eventually.
This is how they pressure you in to spending an extra thousand dollars. They’ll explain to you how you’re wrong, but not to worry, and you should just smile and pay the extra cost because you’re just a lowly consumer that couldn’t possibly do the math right.
If they won’t share the contract for you to review, deal with someone that will. This isn’t an “ask pretty please to share the numbers” situation.
So the money factor buy rate was in fact .00085 but the sell rate was .00135. Actually marked it up by .00050. I called them out on it but didn’t do any good. Wife still wanted it.
So new calculator with adjusted money factor sell rate of .00135 gives me the payment of $393.
Worked on a deal similar to this for myself last year. I’d see if you can find someone who will be more aggressive with the MSRP discount. Maybe also wait for better MF? Was able to get 0.0005 on a 2020 Subaru Forester Touring in February of last year (2020). .00135 seems pretty crummy.
Already purchased! I don’t think 3.24% is bad at all. What I didn’t like was the dealer raising the money factor by .00050 from the Subaru rate of .00085. I called them greedy. I could have walked but I was already fine with the payment from the beginning. We had a 19 Crosstrek Limited we were leasing with a payment of $389 and that car’s sticker was under $32k. This Forester’s sticker is over $37k for $5 more per month! Wife was happy is what it came down too!