Gross cap cost w/ federal credit?

Ask the Hackrs
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1

I kinda feel I am dumb about this, and hesitated asking this question until now, but well, I guess showing my ignorance and learning should be better than doing nothing :slight_smile:

So I got a sheet from dealer for e-tron, and tried to understand the number I got, but it was way off from the calculator. Since the dealer verified below numbers twice and said they were indeed correct, so I should be the one who is wrong or … well, I don’t want to think about the other reason.

  • MSRP 77360
  • Selling price (pre-incentives) $67303
  • Month 24
  • Miles 7500
  • Residual 57%
  • MF 0.00173 (w/ MSD, 0.00128)
  • $7500 federal credit
  • $7500 dealer marketing allowances
  • ~$2900 drive off, including $895 acq fee, first month, tax, dmv fee … + MSD

And the calculator based on above numbers is here.

I thought the gross cap cost on the sheet should be $77360 (MSRP) - $7500 (federal credit, non-taxable) - $10056 (13% off) = $59804, but the number on the sheet is about $2k higher. I understand that any fee (doc, DMV … ) could be rolled in here, but since I pay them upfront (drive-off), I thought above amount was pretty much it. Maybe I am wrong here.

Anyway I double checked the gross cap cost with the dealer, and got an answer that the number on the sheet is correct. At this point I didn’t want to waste his time anymore and started researching the way to calculate the gross cap cost, but no luck.

In short, I think I am missing some factors or miscalculating here for the gross cap cost - maybe related to the federal credit, or something very obvious that you guys can quickly notice :slight_smile: What am I missing here?

Thank you for your help.

1 Like
2

For EV leases the federal credit is assigned to the seller. They can then share as little or as much of it as they want to.

Should they share it with you it should be non taxable to you. Where they list it on their form shouldn’t matter. Other incentives from the OEM are probably taxable to you.

3

what’s the monthly they quoted you?

4

They share it via lease cash ncentive, so it is taxed. Dealer cash incentives are not taxed.

5

$554.68 before tax, which exactly matches with the calculator’s monthly payment if I put their gross cap $61882.39 to the selling price, and remove one of $7500 incentives.

6

Post the dealer’s lease worksheet.

7

Thank you. I hope this portion is enough … Maybe I am just too cautious, but not trying to show which dealership I am working with, since I don’t want to cause any trouble for them because of my mistake. Of course they would know who I am if they see this though :slight_smile:

worksheet
worksheet741Ă—503 52.3 KB

You may notice that MSD seems high, which I asked already and was told that it was the right number (10x MSD) Other dealers said 9x MSD max, so that’s another one that I wasn’t sure, but I didn’t mind too much since it’s refundable anyway.

1 Like
9

There’s something up. If they stack all the incentives as they should then your initial calculator should be correct. You can look at my post for comparison.