Please provide feedback on this lease offer (I am first time leasing). Car is 2025 loaner. Has 10500 miles, so not sure if 12000 dealer leas credit is applicable or not. Residual is adjusted due to miles to 49.44%. Term is 36/10. Dealer claims ‘Customer cash’ listed is DAS. Also although I asked dealer to use base MF (0.0003) they have bit higher, which maybe I can live with. As I do not have clear line items, I am not being able accurately check in LH calculator. Any advice is much appreciated. Thank you
Lots of info missing including sales tax rate, dealer doc fee, title, license, registration fees. Need a complete and accurate itemization of the 4512.70 amount due at delivery as well as an itemization of the 4275.65 capitalized amount (which is not disclosed- I calculated it as well as the gross and adjusted capitalized cost). Where will the car be titled? Cook County - Chicago? With 10500 miles, I assume the warranty clock is ticking. How much time is left on the warranty?
You’re chasing after the dealer and allowing them to control the deal. Bad idea. Create your own target deal. This may help…
Building a Motor Vehicle Lease- Data Collection and Calculations.pdf (403.6 KB)
??? Let me know.
thank you for provided document. Yes, I do agree with your feedback that a lot of was not disclosed. The first step I took was to negotiate OTD price which was 68,972.55 including 7500 rebate. Only then I asked for lease proposal for 36/10 with 0 down and got what I uploaded. SO yes, working to make my proposal to them. I am in Lake co (7% tax). Fees stated in OTD was: doc - 367, govt - 451. Using the ChatAI and your doc I got the following (below). Is this good way to present to dealer?
MSRP:
$100,125.00
Capitalized Amounts
-
Selling Price (S): $76,472.55
-
Dealer Fee (Doc): $367.00
Title & registration assumed paid at inception (not capitalized).
Gross Capitalized Cost (GCC)
76,839.55
Capitalized Cost Reduction
- Rebate / Incentive (CCR): $7,500.00
Adjusted Capitalized Cost (ACC)
69,339.55
Lease Parameters
-
Lease Term: 36 months
-
Mileage Allowance: 10,000 miles/year
-
Money Factor (MF): 0.00030
-
Adjusted Residual Value (RV): $49,503.00 (this is based on LH calculator for miles)
Monthly Payment Calculation
Finance (Rent) Charge
35.65
Depreciation Charge
551.02
Base Monthly Payment
586.67
Illinois Sales Tax
-
Tax Rate: 7%
-
Monthly Tax:
41.07
Total Monthly Lease Payment
- Monthly Payment (incl. tax):
627.74
Lease Inception Fees (Due at Signing)
| Item | Amount |
|---|---|
| 1st Monthly Payment | $627.74 |
| Dealer Fee | $367.00 |
| Title & Registration | $431.00 |
| Total Due at Signing | $1,425.74 |
Lease Summary
-
36 payments of: $627.74
-
Residual Value: $49,503.00
-
Money Factor: 0.00030
-
Mileage Allowance: 10,000 miles/year
-
Drive-Off Amount: $1,425.74
-
State: Illinois
Using these numbers I get LH calc score of 12.8 years (PS. did not include the acquisition fee, but did not want to re-work all these numbers, but will include to dealer).
Nope. You may want to look at the sample lease proposal in my posted doc. Also, you show the 367 doc fee as a capped item as well as a lease inception fee. You’re paying it twice. Doc fees are typically paid at lease inception while acquisition fee is capped… 925 in your case. Where is the tax on the 7500 CCR? It should be 525. Also, the 367-doc fee is taxable if you choose to pay it upfront unless the tax treatment has changed like it did in Ohio in May 2023. If it’s capped, it’s automatically taxed. Suggest you pay taxes upfront (except payment tax, of course). Are you sure that Illinois taxes the individual base payment streams as they are received? I think that may be true today. However, not long ago, they used to tax the sum of the base payments over the term of the lease payable upfront. However, the dealer can cap it and BMW would pay it upfront on your behalf.
I recommend that you don’t use ChapStick or the LH calculator as they won’t teach you a thing. ChapStick does make mistakes at times… I don’t trust it. The only thing I trust are my own calculations and the formulas I derived. Also, I would allocate a portion of the 7500 rebate to the CCR and the balance to the upfront fees so that you owe nothing at signing. This requires that the CCR be calculated using the formula in my posted doc.
EDIT: OTD means nothing in leasing. It only applies to a purchase.
I’d be looking for a larger discount… perhaps 30% or more.
I try to follow you, but missing something. As part of my learning, first I wanted to not use rebates as CCR and somehow can not get to the DAS of 2112.33 and 286.83 as in doc. Also I can not find the ‘M=Taxable Capitalized Fees (some states may include non-taxable fees) 735.00’ in lease proposal. Can you help me with example of correct calculations if no CCR used. BTW - maybe the brokers were very busy working, but did not get response to my text from a single broker under Midwest tag which was somewhat a disappointment. So I ended up reaching out to this particular dealer with the loaner, but when I gave him my target monthly payment he said not interested in such deal. So not sure how realist to pull 30 % off MSRP…..
30% off would be an absolute desperation move for the dealer throwing in a towel, would not count on it. Also check the tires (esp. if larger rims with performance rubber) after 10K.
Or here is a ready solution for you if you are OK with a slightly less loaded iX. Save about $3K on DAS after shipping and about $50/mo. Slightly lower mileage too.
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Let’s use your data. I’ll use a 30% discount. Here is what I have…
MSRP…………………………………… 100,125.00
Sell Price…………………………….. 70,125.00
Acq Fee……………………………… 925.00
Gross Cap…………………………. 71,050.00
CCR Partial Rebate ……………. 5,766.74
Adj. Cap…………………………….. 65,283.26
Res. Value………………………… 49,502.50
Sales Tax Rate…………………… 7.00%
Term………………………………… 36
MF…………………………………… .00030
Rebate…………………………….. 7,500.00
Base Payment = 472.80
Contractual Payment = 505.90 (includes tax)
Lease Inception Fees
1st Payment…………………………….. 505.90
CCR……………………………………… 5,766.74
CCR Tax…………………………………. 403.67
Doc Fee………………………………… 367.00
Doc Fee Tax…………………………… 25.69
TLR………………………………………. 431.00
TOTAL DUE…………………………….. 7,500.00
Rebate Credit………………………… 7,500.00
Due at Delivery………………………. 0.00
Bottom line: 0.00 Due at Delivery followed by 35 monthly payments of 505.90 each.
If you look at the formula in the Doc, C = 7500. K = 367.00 + 25.69 + 431.00 = 823.69. These are fees that don’t change… hence, they are fixed. The payment, CCR, CCR Tax are variable fees or fees that are calculated. C - K = 6676.31. M = 925 and is the total of all capped fees.
If you cap non-taxable fees in states that compute tax on the payment streams, you will pay tax on them when the tax is levied on the base payment. This is why I prefer to pay non-taxable fees at lease inception such as sales tax and TLR fees.
hmmmmm. Then what do you plan to do with the 7500 rebate? I can do a CCR = 0 calc… but, how do I account for the 7500 rebate?
That’s what results when CCR = 14,000.
after re-reading your document, I would have to correct the way I worded and say that I would like to use entire rebate as CCR, then Adj. Cap would be 63,550. Yes, I will have due at delivery. I will keep analyzing your formulas and calculations to keep educating myself. Using LH calc at lease helps me to see LH score, so I would be ok to use it first as base then re-check with your method. This is the similar signed deal i was trying to replicate with my local dealer.
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Sounds good. ??? Let me know.
@delta737h do you mind re-checking my calc. This is for a different car and here are the inputs:
Tax Rate 7%. MSRP: 71539 Selling Price: 61539. Capitalized Fees 0, Non-Capitalized Inception Fees: Dealer Doc Fee: 367.70, Title / Registration/ERT: 351. Term: 24/10, MF 0.0019, Residual 78%. Rebate 2000. Using you CCR formula I am getting following result:
Lease Inception Fees
• 1st Monthly Payment: $458.55
• CCR (Partial Rebate): $768.92
• CCR Sales Tax: $53.82
• Government Fees (title/registration): $351.00
• Dealer Doc Fee : $367.70
• Rebates/Credits: $1,999.99
• DAS: $0.00
When i enter same numbers to LH calc, I get lower payment (yes, i know DAS here is 1286). But I am interested to see what you would get if you changed your numbers so it also has same DAS to match LH, and what monthly payment be in that case. I am trying to understand if my interpretation and math is correct here using your methods. Thanks
LH calculation
Here is what the LH Calc is doing…
MSRP… 71539.00
Sell Price… 61539.00
CCR… 2000.00
Adj. Cap… 59339.00
RV… 55800.42
MF… .00190
Term… 24
Tax Rate… 7.00%
Base Pay = .0019 x (59539 + 55800.42) + (59539 - 55800.42) /24 = 374.92
Pay with Tax @7.00% = 401.16
Lease Inception
1st Pay… 401.16
CCR Tax @7.00%… 140.00
Doc Fee… 367.70
Doc Fee Tax… 25.74
TLR… 351.00
DAS… 1285.60
The LH calc is spot on.
Change my numbers? What numbers?
Let’s look at your posted numbers above v. mine. Here’s mine…
MSRP… 71539.00
Sell Price… 61539.00
GCC… 61539.00
CCR Partial Rebate… 743.76
Adj. Cap… 60795.24
RV… 55800.42
MF… .00190
Term… 24
Tax Rate… 7.00%
Base Pay = .0019 x (60795.24 + 55800.42) + (60795.24 - 55800.42) /24 = 429.66
Pay with Tax @7.00% = 459.74
Lease Inception
1st Pay… 459.74
CCR Partial Rebate… 743.76
CCR Tax @7.00%… 52.06
Doc Fee… 367.70
Doc Fee Tax… 25.74
TLR… 351.00
TOTAL DUE… 2000.00
Rebate Credit… 2000.00
DAS… 0.00
DAS = 0.00 followed by 23 monthly payments of 459.74 each.
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so one think you confirmed, that my calculations were within 1$ from yours. What I was trying to say comparing to LH, is that since I am not confident how correctly to work the LH calculator to try to get 0 DAS, I was trying to see what payment you would get with your formula if you wanted to have $1286 and not 0 DAS, so it is apples to apples. Hope this make sense. THanks
That’s because you didn’t include the tax on the doc fee. I will provide a formula for the desired DAS in a few hours.
No problem. The CCR formula had to be altered to accommodate a pre-determined or targeted DAS. Here’s the formula…
Hope this helps. ??? Let me know.
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So here is my comparison of calculation results:1) with 0 DAS, LH has 458 and based on your formula 459, 2) with 1286 DAS, LH has 401 and your formula has - 402. So I can say it is pretty darn close for estimation purposes. Thank you for your input and assistance in learning on leasing.
You’re very welcome.
I think getting an iX at under $500 a month with $0 DAS sounds like a very good deal.
Deal check please for 2025 BMW ix50 demo/loaner:
MSRP 98350, Sale price 77000 (21.71% off), Rebate 7500, Term - 36/10k. Residual 50.43% (adjusted due to miles on demo car), MF 0.0007, doc fee 367, acquisition fee 959, gov fee 451. 0 MSD. Monthly $782 with 0 DAS. Looking more feedback on deal value vs re-checking the payment calc. Thanks in advance
It is a good habit to post an LH calc for each deal check…easier for review.