First off, thanks again Hackrs for bringing me up to speed. This site has been a wealth of information.
One of the dealerships sent me a quote - and while I can use the Hackr calculator for all the other quotes I’ve received and get within a few dollars of what’s on the quote, this one just isn’t working. No matter what I put in the Leashackr calculator I’m not coming up to the dealers number. Being blind on several fees makes it hard to negotiate.
What are these amounts?
Also, what’s your recommended approach to strip down this quote to something that can be negotiated?
Definitely. I’m receiving minimum 8% off MSRP with most everyone at the base MF (0.0008). But the problem is even when upping the discount the payment still comes out higher than cars with lower sales prices and the same rebate and MF. It’s not adding up.
Some of the stuff that doesn’t make sense:
Aftermrk/Due Bill: $269
DMV Amt/ADD of $573
Cap Reduction Tax $848.68
Total Inception Fee of $3,620.22
Rebate as Cape Reduction: $8279.78
Aftermrk/Due Bill: $269 - that’s an add-on.
DMV Amt/ADD of $573 - that’s normal for CA.
Cap Reduction Tax $848.68 - tax on incentives
Total Inception Fee of $3,620.22 0 - total cash due at signing - first month, tax on incentives, and fees
Rebate as Cape Reduction: $8279.78 - they’re using the rebates as a drive-off, rather than reducing the selling price. That’s totally normal. They’re taxable either way.
Negotiate the selling price, rate (MF), and ensure there are no dealer add-ons. That’s all you need to do. Everything else on the sheet you posted looks normal.
Selling price - looks like you’re currently getting 7% off, I’d aim for at least 10%
Rate (MF) - ask for the base without markup and have them confirm what they’re using
Add-ons - have them confirm no dealer products / accessories / add-ons are being added; once they confirm this, they won’t be able to sneak anything in on you in the contract
If you have any other questions, feel free to text, happy to help: 818-314-1456
So is it using the rebates as a drive-off instead of reducing the selling price what is leading to a jacked up monthly premium by nearly $100? I get $710-720 vs. the $805 they’re quoting.
And why would it matter to a dealership whether they use them as a rebate as a drive-off or reduce the selling price? Trying to understand how to negotiate on this point.
No. Of the 11900 rebate, 8279.78 is used as a cap reduction and the 3620.22 balance is used to offset all of the lease inception fees so that you owe nothing upfront. The CCR tax of 848.68 is computed as follows…
10.25% x 8279.78 = 848.68… you sales tax rate is 10.25%.
Can’t do a thorough analysis… too much info missing (term, money factor). Can’t even reverse engineer. These idiots didn’t disclose the term.
And sales tax is off. I’m at 9.75 not 10.25. But that’s not enough to lead to an almost $100 difference in what I get when I plug in the numbers to check their work.
The dealer used 10.25% sales tax rate. No where do I see 7500 unless it’s included in the 11900 rebate. I’m just trying to reconcile the dealer’s worksheet which is what you are questioning.
Base Pay = .00080 x (63204.07 + 39886.60) + (63204.07 - 39886.60) /36
= 730.18
Monthly Pay = 730.18 x 1.1025
= 805.02
Are you absolutely sure that the MF the dealer used is .00080? If I don’t have accurate data, I can’t help you. The capped amount of 152.85 does not seem right assuming the sell price = 71331. If the MF = .00080 and the term is 36, then the adjusted cap must be 63204.07 in order to end up with an after-tax monthly payment of 805.02. I believe the dealer used an MF other than .00080.
I think you’re chasing after the dealer and allowing them to control the deal. Bad idea. You might find this helpful…
You won’t get accurate results with any online calculator including LH. The reason is that the 11900 is allocated as I explained above. There is no online calculator that can perform the allocation. Also, you did not account for the capitalized amounts.
So this is the primary difference that is leading to the much higher payment? What is the alternative way for dealers to make the allocation? Clearly the alternative is to advantage of the buyer of a lower payment.
I should also ask what do you mean by “owe nothing?”
If you use the entire 11900 as a CCR, you’ll lower your payment. However, you will owe big bucks at lease signing.
The amount due at lease signing (DAS) = 0.00
If your MF is truly .00080 (about 1.92% APR), I would cap all taxable fees and pay your first payment plus all non-taxable fees a lease inception. You can do a rebate allocation based on this strategy which would be optimal for your situation.
It can but you need to be smarter than the calc and know how to finagle the DAS!
This is close…personally I don’t do this as I have my own spreadsheet but I manipulated the ‘down’ to get DAS to 0…it’s close enough if you aren’t spending the time to put your own spreadsheet together.
I’m talking about an online calculator that can take a rebate and calculate the rebate CCR so that the balance is used to offset the DAS fees… DAS = 0, for example.
I’m not talking about doing guess and check or using a value from an already calculated rebate balance (3616) … How did the dealer calculate the 3616? You’re using their calculated result as an input. That’s like cheating on an exam (lol). Can’t do that. The Calculator must be able to calculate it without any input or manipulation from the end-user.
No need to manipulate or guess and check. Use the formula that I’ve posted many times in other threads. You may want to put that in your spreadsheet.
Prof, dude, you still think people coming here will read all your papers and formulas. Lol! They so don’t/won’t once they see all your equations. They will just wait for you to do or continue on their uneducated path…
My spreadsheet can handle all that but I’m an engineer…I get things to work my way and not just the theoretical. Haha!
Since I don’t know the inner workings of the LH calc I manipulated the ‘down’ to get to his chosen DAS to zero and the internal formulas of the LH calc spit out something close to theoretical.
Again, most people coming here will do none of this on their own but a way greater chance they use an already created and somewhat flawed tool than create a spreadsheet from your 4 pages of equations. All simple but most people’s heads explode. Lol
