Calculator link - from the dealership
The contract:
page26.pdf (116.9 KB)
I’m curious about the rebate number in the contract (15.b - 4244$) is less than the one in calculator link (7500$). All other numbers I think the same. However, monthly payment in the calculator link is 499$ (tax included), but in the contract is only 469$. I’m very confused, what am I missing?
Really appreciate if someone can help pointing out the reason.
15B is showing how much of the rebate is being used as a cap cost reduction. The rest is covering driveoffs.
Here is a quick synopsis of what’s transpiring with the dealer’s lease worksheet…
Sales tax is being levied on the cap reduction rebate of 4244.20 @10.5% = 445.64. This is your only sales tax liability according to the worksheet.
7500.00 – 4244.20 = 3255.80. This amount is used as a rebate credit to pay the upfront fees as @mllcb42 mentioned.
1st pay 469.06
Acq. Fee 1095.00
Sales Tax 445.64
MSD 5500.00
License Fee 1097.10
Doc Fee 115.00
Trip Permit 34.00
TOTAL DRIVE-OFF 8755.80
Rebate Cr. 3255.80
BALANCE DUE 5500.00
Therefore, you owe 5500.00 (MSD’s) at lease signing (DAS)
Except for lines 29 & 30, which makes absolutely no sense, all worksheet calculations are correct as I did them using a computer program, I developed years ago. I never use on-line calculators. However, after reviewing your calculator inputs and outputs, the 451 and 499 payments are inaccurate. This is likely due to your input (e.g., only the 4244.20 cap reduction is taxable and not the entire 7500 EV credit). Also, you are not capitalizing all the fees. They are all paid upfront using the balance of the 7500 EV credit (3255.80) to offset the total drive-off due as shown above.
BTW, your base payment is calculated as follows…
Base payment = 0.00025 x (47637.60 + 33082.35) + (47637.60 - 33082.35)/36
= 424.49
Lease payment = 424.49 x 1.105 = 469.06
Therefore, no fees are being capitalized in this lease. They are all paid upfront.
Hope this clarifies things. If not, please let me know.
Wow your explanation is so detailed!
Thank you for taking time writing it down, it helps me very much to understand the lease sheet.
Thanks! Glad to help. BTW, here is a calculator link… had to get a little creative.
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