Hello Hackrs! So thankful for this forum it has saved our family literally thousands of dollars.
I have been working on an Escalade IQ lease for the last couple weeks($130k MSRP, 36/10k, Texas). I haven’t signed yet but plan to on Tuesday but I am a little confused on the deal sheet.
If I trade in my car the total cost of the one pay lease is about $55k ($31k trade in and $24k one pay lease).
If I don’t trade in my car the total cost of the one pay lease is $59k.
The Escalade IQ has tax credits so I don’t think the difference is taxes. Am I missing something?
Most of the 2024 Escalade Sports are gone. The best deal I could find on an ICE Escalade was $1,371 a month on a 48 month lease. That was for a $98k MSRP. The IQ was closer to a 1% lease deal abd we are fans of EVs generally.
Based on rough numbers in the LH calculator, adding the $32K trade-in equity reduces the rent charge by about $3000. Somebody smarter than me can explain better, but in the trade scenario the vehicle equity essentially reduces the adjusted cap cost, which lowers the rent charge.
Better question is why pay $1640 effective per month for an iQ? Wait a few months and it’ll be significantly cheaper if you can. Or just lease a gas escalade for $500+ cheaper per month
I would recommend holding that 32k equity that is a ton. I can almost guarantee you this. At in December or end of the first quarter will be cheaper. Once these get stocked up and they will sit you’ll have a better shot. Just look at the qx80 2025, I’m seeing a ton of price drops and with negotiations and this forum supporting you there’s no doubt you can do 1% or close to it without any trade in. Best of luck.
Yup. What is the residual value and the discounted money factor for the one-pay? I need this so I can calculate the one-pay. I assume the 225 admin fee is the dealer doc fee. Is that correct?
Also, FYI-
Tax with trade…
Inventory tax = .0014011 x (124490 + 895) = 175.68
Finance tax = .012 x (93885) = 1126.62
Total tax = 1302.30
Tax w/o trade…
Inventory tax = .0014011 x (124490 + 895) = 175.68
Finance tax = .012 x (125385) = 1504.62
Total tax = 1680.30
The IQ is $1,538 a month. I have never seen an ICE Escalade lease in Texas anywhere close to $1,100 a month (but would be all over it if I could get that). The best deal I could find was $1371 a month for 48 months on a $98k MSRP.
The trade should not impact the RV nor the MF. I once had a Honda Dealer tell me that they had to use a higher MF because I had a trade. I told them that either they are misinformed or they’re lying. I further stated that Honda Finance couldn’t care less whether I had a trade or not. If anything, a trade would lower the MF because their risk is lower due to a lower adj. cap. I went to another dealer. I won’t tolerate stupidity.
Also, you should know that the amount shown under lease options (e.g., 23881.54) is, in all likelihood, not the one-pay amount. It’s more likely to be the one-pay plus fees and taxes. It’s very important to know EXACTLY what the one-pay amount is as it is used to compute your adj. lease balance in the event that you wish to exercise your purchase option or early term out of your lease at some point during the term of the lease. Don’t let some moron tell you differently.
EDIT: If you qualify, you should get the MF buy rate which has zero markup regardless of whether you have a trade or not.
BTW, assuming your LH Calc RV is accurate and a .00370 MF, this is as close as I can get using the LH Calc which I typically do not use as I have my own programs that I’ve written…
The total amount due at signing is 58879 v. the dealer’s 58902, a difference of 23. The one-pay is 56778 according to LH Calc. Note that GMF no longer has an acquisition fee. Also, the 895 dealer add-on must be added to the sell price to get 125385 which is the SP in the LH Calc so that tax can be correctly calculated.
Below is the LH Calc with the trade. An MF = .00374 assuming a 68% RF gets you close (about a $12 difference)…
Apparently, we need to get a grip on the correct MF and RV. Also, it’s very important to structure a cost-minimizing lease. This can be accomplished by deducting the trade value from the gross cap with all fees/taxes paid at signing which I believe the dealer has done.
