Can someone make sense of this deal? Do the lease numbers add up? I can’t figure out how to input all of this into the calculator
$115k for grand cherokee?, plus looks like their was a trade? Wheres the details on that
Is this a Grand Cherokee or Grand Wagoneer?
It’s a grand Wagoneer and there’s no trade. I don’t know why they put that in there. Maybe there’s some incentive that the factory will give. I don’t know, but I don’t have a trade.
Grand Wagoneer
What state is this in? Definitely isnt a socal dealer.
Can you post your best attempt at a calculator?
The dealer is out of state
Theyre not doing your registration anywhere near correctly for a CA vehicle. Is going to be more like $1400 than $28.25
$5000 is your due at signing, not down payment amount, so you need to adjust the calc to make the due at signing match.
Youre also missing the (incorrect) gov fees and doc.
Thank you! Where do I adjust the due at signing ?
The proper way would be to mark the appropriate fees as capitalized vs upfront and then adjust the down payment amount to match the extra cap cost reduction being made beyond the incentives. That would also require the other fees being correct.
You can get close by just changing the number uou have for the down payment until the due at signing matches though. Won’t be exact, but it will get you close enough to see if theres something significant missing.
Yup. Me.
Yup… assuming the dealer numbers are accurate. I confirmed their calculations manually and they are correct.
Here is the LH Calc
I’m not a big fan of online calculators. You’re not going to learn much pressing buttons on a calculator. Let’s look at the math…
First, the dealer used a sales tax rate of 8.375%, not 9.75%. Here’s how the numbers align…
MSRP 115980.00
Sell Price 87980.00
Gov Fee 28.25
Doc Fee 495.00
Acq Fee 595.00
Gross Cap 89098.25
CCR 11185.33
Adj. Cap 77912.92
Term 27
MF .00084
RV (51%) 59149.80
Base Pay (pretax) = .00084 x (77912.92 + 59149.80) + (77912.92 - 59149.80) /27
= 810.06
Payment (post tax) = 810.06 x 1.08375 = 877.90
Lease Inception Fees
1st payment 877.90
CCR Tax 936.77
Cash Cap Reduction 3185.33
DAS 5000.00
Bottom line: 5000 due at signing followed by 26 monthly payments of 877.90 each.
For what it’s worth…
You’re allowing the dealer to control the deal… bad idea. Don’t waste time trying to decipher a dealer’s worksheet or chasing after them. They often omit a lot of relevant detail such as money factor, monthly base payment, monthly contractual payment, fees not itemized and even make mistakes. You need to rely on credible outside sources (e.g., LH marketplace and signed deals, Edmunds, etc.). Do your own research and establish a reasonable selling price in your local market. Be sure to get a copy of the factory window sticker. Check for non-factory add-ons or dealer-installed options. And, if possible, eliminate those you don’t need or want. Get a list of all customer and dealer rebates/incentives including VIN#-specific discounts/incentives, if any. And, yes, the dealer has such a list.
The only thing useful about dealer lease worksheets is the input data. All data should be vetted such as acquisition fee, doc fee (regulated by some states), cost of money (e.g., money factor), gov fees, residual, rebates/incentives, sales tax rate, etc. Make sure the residual matches the term and annual mileage requirement. Check available tax credits/incentives via the fund provider who may cover taxes or, at minimum, may assess a lower sales tax rate to energize sales for some models.
Organize all relevant data with the goal of creating a lease proposal that reflects your target deal. The idea is to create your own target deal (proposal), not replicate the dealer’s deal.
Commentary
No need to pay 3185.33 upfront. Used as a cap reduction, you could lose most or all of it in the event the vehicle is stolen or totaled. Remember, a car is an expense and a depreciating asset, not an investment. Use the 3185 to invest in goods and services or other more meaningful and productive investments, particularly if you can earn the equivalent of an after-tax rate of return exceeding 2.0% (2400 x .00084 ≈ 2.0%).
Craft a one-page lease proposal (I’ve posted several examples in many threads on this website) and email it to the sales manager (SM), not a floor salesperson as they’re often Mickey D order takers and lack knowledge. All numbers must be accurate otherwise, you’ll lose credibility. Negotiate via phone/email. Once an agreement is reached, ask the dealer for a review copy of the lease agreement and all contract addenda BEFORE you go to the dealer and sign. Moreover, it’s helpful to know the terms and conditions of the lease contract such as early termination liability criteria and purchase option criteria as well as lease amortization methodology and excess wear/tear criteria. If all is as agreed, tell the SM that you’ll come in to sign asap. You don’t want any surprises or dealer excuses like …. Oh, we made a mistake. That’s unacceptable and shouldn’t be tolerated.
If the dealer isn’t transparent or is uncooperative or showing signs of incompetence, WALK AWAY AND MOVE ON!
Leasing is time-consuming and requires a good deal of study and attention to detail. If you don’t have the time to commit, perhaps your best alternative is a good broker. There are some outstanding brokers on this website. However, if you’re willing to commit your time and resources, be sure to always control the deal. That can only be achieved with education which breeds confidence and increases the likelihood of success.
??? Let me know.
2 Likes
Wow thank you. The reason why I wanted the calculator is so I could slightly play with numbers, I am aiming for about 20% off MSRP from the dealer prior to any rebates/dealer cash. I did a bit of research and Edmunds says there is a 9k cash back from he dealer which Im assuming Is calculated in the current discount. I am going to back that out and push for further discounts.
1 Like
Sounds like a plan. Good luck!
Don’t get bogged down push-and-pulling with any single dealer. Know your target (run it by the forum first) and make lots of offers.
1 Like