I live in New Jersey and just started working with a dealership in PA to lease a Mazda CX-90 PHEV Premium. Attached is a photo of their preliminary offer—but I know we can do much better. Hoping to get down into the 400s, which I believe is doable via security deposits and a few other moves. Any advice is deeply appreciated!
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I could be totally wrong here but isn’t your total cap cost (selling price) net of cap fees $57,540, which is higher than MSRP. Did the dealer add a market adjustment fee on top of the MSRP or other useless dealer add-ons?
Also, paying 7.9% APR equivalent is not helping your bottom line.
Why not? Isn’t total cap in any lending transaction the total amount financed. In the case of auto lease financing it would be the total selling price, plus any capitalized fees. Given the worksheet already showed the capped fees the difference would be the actual sale price before any gov and manufacturer rebates.
I look at any rebate as someone else (gov or OEM) making a cash payment on your behalf at signing, as opposed to a reduction of the actual sale price.
The gross cap cost is the selling price plus any capitalized cost. The adjusted cap cost is the gross cap cost less any cost cap reductions (be it down payment, trade equity, or applied incentives).
In this case, the gross cost is over the msrp (simply meaning that the sum of all the capitalized fees and taxes exceed the discount amount) but the selling price isn’t over msrp.
How do you know the taxes and other fees are capitalized if they are not spelled out as such? The dealer could have added a bunch of dealer add-ons to increase the cap cost.
Edit: Nm, I manually added all the fees and they add up to cap cost. Why would anyone want to pay 8% interest on taxes and fees?
Generally, it would make little difference if the fee is capitalized and then the whole incentive is applied as a cap cost reduction vs having the fees paid upfront out of the incentive and the balance applied as a cap cost reduction.
In some situations there is a tax differences between those situations and it can make a big difference on a one pay, but for monthly leases they’re pretty much one in the same.
