Hey all. I’m looking to do a two year lease on a Kia EV9. I entered the deal into the CALCULATOR | LEASEHACKR but the numbers aren’t matching what I’m getting from the dealer and I can’t figure out why.
Assuminig that quote-sheet includes a 6.35% sales tax, you’ll want to ask your sales person what is the money factor they are applying. My guess is it’s not 0.00095.
With the buy rate MF, I’m getting $599 after tax monthly assuming only first month payment due at signing.
They told me 0.00095 and 64% residual.
Then they have some explaining to do. Dealing with this in text is going to be murderous… it’s almost like you need a zoom call with the sales person lol.
First step, They’re burying $643 of some mystery fee in your lease. Do the math: $62,550+ $400 + $798 + $868 + $650 = $65,266.63.
But they put $65,910.27 as the gross cap cost. This lease says nothing about being a sign-and-drive 23 payments vs 24. But that’s how they structured it. For my sanity, let’s pretend we’re dealing with a normal 24 month lease where first month payment is due at signing and that’s it.
So second step, let’s take sales tax out of discussion for now. Figure out the pre-tax # first then add in sales tax.
The MSRP is $66,550 with 64% resid that is: $42,592.
The Pre-Tax adjusted cap cost is $53,199
($65,266.63 less $868 and less the $11,200 rebate)
MF 0.00095
Ok so here’s the monthly lease payment calc (@delta737h will give me an F for attempting this, I can feel it)
Pretax:
MF x (Adj Cap Cost + Resid) + (Adj Cap Cost - Resid) / Months
So that’s:
0.00095 x ($53,199 + $42,592) + ($53,199 - $42,592) / 24
$91 + $442 = $533
Here’s the LH Calculator for $533 a month. Zero down payment. All inceptions capitalized. No hidden $643 as if it were a sign-and-drive. 24 total monthly payments.
Get your dealer to align on this before you add in tax.
BTW @IAC_Scott and @thevolvoguy, I feel like I keep seeing this more and more often.
IIRC there are a few threads now on LH where dealers bury a month’s payment into the the cap cost, but then form the lease for a normal number of months so effectively the lessee in this case is paying 25 months on a 24 month lease.
Do you think this is an honest mistake, or is it a new way to juice leases that people have to be fastidious and look out for?
I haven’t personally seen that.
For some reason, I find it half impossible to get dealers to quote pre-tax numbers.
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This thread was the most prevalent one where LH actually came together (I know it’s crazy!!!) and agreed the dealership snuck an extra payment into the formed lease.
But a few of ELead quotes I’ve helped people with look like @mike817 's where the sum total of the itemized costs do not add up to the gross cap cost and it’s up to the lessee to figure out what type of aftermarket or hidden fee gets snaked in there.
Like one DM thread I’m in, the dealer didn’t even itemize. The dealer just flat lied and had a ~$2k fee buried in the lease structure that was never discussed. basically the dealer was offering a $39k sales price that was in reality $41k, but they wanted to show $39k so they just hid $2k in the structure.
It feels awfully shady AF.
Theyre capitalizing the first month payment to make it $0 due at signing it looks like.
The selected terms box does say $0 due, which would be consistent with it being a sign and drive.
I get the calculator to the $0 down deal sheet numbers by capitalizing all up-front costs and marking up the MF by around 0.5%
Thank you all. I’m going to go back to the salesperson tomorrow and let him know his numbers don’t add up.
Yeah it’s weird, OP says the dealer insists it’s 0.00095
Were you intending to do a sign and drive? So you’d only have 23 payments?
we didn’t discuss that. i’ll check on if that’s how it’s written tomorrow.
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No point.
Make him an offer based on the deal you’re targeting and leave it at that.
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