Help with hand calculation of lease payments

Ask the Hackrs
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1

I am trying to understand the mathematical formula when calculating a lease on total lease payments. (e.g. NY, NJ, MN, OH, GA)

I found a formula in another thread and tried to punch in the numbers but I keep getting the wrong values. Would like to better understand the mathematics behind this.

Sample Lease (values taken from actual lease sheet):

MSRP - 33,995
RV - 16,997
Sale Price - 22,817
Fees - 1096.40
Reg - 365
DP - 1000
TaxR - 6.625
MF - .00225
Term - 36

From lease sheet:

Tax - 667.84
Monthly 294.00

Formula found in another thread:

base payment = MF x (sell price + taxable fees capped in the lease - cap reductions + RV) +
(sell price + taxable fees capped in the lease - cap reductions - RV) / Term

264.xx = .00225 * (22,817 + 1421.40 - 1000 + 16,997) + (22,817 + 1421.40 - 1000 - 16,997) / 36

sales tax = base Payment x term x sales tax rate

629.64 = 264 * 36 * 6.625%

Monthly = 281.49 = 264 + (629.64 / 36)

WTF - AM I DOING WRONG :slight_smile:

Calculator with correct values.

2

Are you mixing up the DAS amount and CCR? Shouldn’t the CCR amount be taxed as well?

3

Matches my calculator if I tax dmv fees, which probably equates to tax on the doc fee, whatever it is

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4

I dont doubt the payment ant tax are correct, im looking to the actual formula to calculate those numbers.
I think i have something funky going on calculation my NCC

5

Are you in NY? New York has a very weird formula for taxes. I’ve posted it several times if you look.

6

NJ, and yes i have seen that page. I based some of the above calculations off of it.

7

Leasematic. Great app.

1 Like
8

You’ll need to build an iterative loop to back into the final net cap cost. I don’t think there is a single formula you can write to get to the exact payment and tax.

Dealer Science has the best calculator widget for the dealers that use them. With selling price, RV and MF locked it allows you to pick a monthly payment and it tells you what the DAS will be or you pick the DAS and it tell you what the monthly payment is.

9

The dealer tools are great, they can roll whatever they want to get to a certain payment, price, rate, cash down, aftermarkets.

10

I’m trying to figure out how this dealership got the pricing for the cap reduction tax? And is this always charged?