Deal Check: Mitsubishi Outlander PHEV Platinum

Looking for input on this offer sheet for 15k mi/yr x 48 mo. I’ve always paid cash or financed to this point and am a rookie with leasing. Doesn’t look like the $8k lease rebate is worth it, especially when 0% financing is available for 48 months.

Vehicle is a 2024 Mitsubishi Outlander PHEV Platinum in AZ. Thanks all.

Go to Wiki here and learn how a lease payment comes together using the LH calc.

PS, a 50% RV is pretty bad.

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Not too pretty. Ned a lot more in discounts…

Agree that it’s important to know how a lease is structured, and… are you wedded to this specific model? What are you priorities in a car?

The posted worksheet is a good example of why you should never trust a dealer’s calculations. I’ll use the 1st of the four columns.

The tax calculation of 280.13 is wrong. Here is how it was done…

8.05% x (2884.86 + 595) = 280.13

And, here is why it is wrong… The 595 acq fee is capped and taxed again when the tax rate is levied on the base payment which is also wrong. This means that the contractual payment is wrong as well. We have a comedy of errors. Many of these clowns can’t seem to populate desking software fields correctly.

Moral of the story… learn how to do the calculations manually. Don’t rely on calculators because they won’t teach you a thing.

Here is what I get using the formula below…

For those states that levy tax on individual payment streams (AZ) with the goal that DAS = 1st payment plus CCR, consider the following (CCR Tax is capitalized).

image

Lease Inception Fees
1st Payment 615.19
CCR 2884.81
DAS 3500.00

Commentary…

I have no idea what market value means. It’s not necessarily numerically equal to the MSRP. As such, I have no idea if the 3760 discount is any good or what it includes. You need to get some clarity. The doc and license fees seem high. As @gohawks23 stated, the residual is not good for only 36 months. But the dealer has no control over the RV. What they can control is the money factor. Did you check to see if the .00265 is the buy rate and, do you qualify for it? Did you check to see if you’re getting all the rebates for which you’re entitled?

Why are you paying 3500 out of pocket? With an 8000 rebate, you should be paying the 1st payment, license fees, doc fee, and CCR tax at lease inception. Use a portion of the 8000 rebate to pay for those inceptions fees and use the balance as a CCR so that your DAS = 0. Or structure the lease so that DAS = 1st payment leaving more for a CCR. There are a multitude of ways to structure a lease.

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Among the Outlander PHEVs, Platinum is the only trim with light-colored seats and parts of the interior, a plus here in the desert. We also appreciate that it’s the fully loaded model with heads-up display, etc. If we don’t get the Platinum, we probably won’t get an Outlander PHEV.

Priorities include a PHEV that can deliver 25+ miles of range to cover daily commuting with a bit of softroading capability. We’ve looked at the Grand Cherokee 4xe, RAV4 Prime, and even the RAV4 Hybrid Woodland (albeit not a PHEV). These have different missions of course but would all be in our wheelhouse.

Check out the Kia Sorento and Mazda CX90 for a traditional lease

RAV4 Prime for lease followed by immediate buyout.

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Market value here is MSRP for the car plus tonneau cover and a some floor mats, cargo mat, touch-up paint, etc.

It seems the majority of car dealers here in the Phoenix area slap a bunch of add-ons on the car like window tint, paint protectors, door guards, and even nitrogen-filled tires (lol) with a fat mark-up. (Different from my last buying experience back in the Midwest.) The dealer said they’re giving me a “deal” by throwing in the “$2500 worth” of such accessories into the deal. They spun this as a “discount” off their asking price.

I asked about the MF. They said what they entered into the offer was the buy rate (which I’d qualify for). However, I went on the Edmunds forums and got a lower MF for the same trim and lease term/mileage. I’m thinking about either just buying the car with the 0% or walking away altogether.

Best decision

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