How-to Calculate Zero Drive-Off

How do I calculate Zero Drive-off?

Currently my Drive-off fees are $1779, not horrible but I want to see what difference it will make in my monthly payment if I roll everything into the lease.

Basically just take the $1,779, divide by the number of payments, and add that to your existing monthly quote. Should be within a few dollars of actual.

Cool thanks, adds $49 to my payment. Lease Guide’s calculator comes up with a similar number of $364 vs adding $49 to $319 = $368

I imagine the answer is somewhere in-between.

Rolling the drive-offs into the monthly payments will expose them to interest charges, so the final additional amount paid will be more than the amount being rolled in.

FYI (at least for GM Financial leases), if you pay off the balance of the lease payments early, you save on the interest charges! On my recent '16 Cruze lease, the total rent (interest) charges would have been around $1,100 if I made all monthly payments according to schedule. Because I sold my Cruze to Beepi shortly after leasing, the final payoff amount was around $1k less than the residual + remaining lease payments, basically the result of not having to pay the remaining interest.

edit: I called GM Financial…you only save on interest charges if you (or a dealer) purchase the car outright. If you just send in a lump payment to cover the rest of the monthly payments, they’ll just hold onto the money and deduct the monthly payment each month until all payments are made. So no interest savings that way.

1 Like

Yup. I made the mistake of estimating the payoff on a BMWFS lease as residual + remaining monthly payments. The actual payoff was lower, as it doesn’t include rent charges.

Bump! We’re looking into incorporating zero drive-off into Leasehackr Calculator. Any formula suggestions?

All the lease contracts I’ve seen have the drive-off fees covered by rebates. But I assume one could also add up the drive-off fees (registration, doc fee, etc.), and add them to the cap cost?

2 Likes

I would imagine the easiest way is to just add the drive off costs to the cap cost like you mentioned. The result should be very close to what a dealer might do.

I’ve observed what you mentioned though…I recently did a $0 due at signing and to get to the correct monthly price the dealer increased the selling price, applied rebates to cover most of the drive offs, and then the dealer just covered the rest of it. I didn’t quite understand the methodology but it resulted in the same monthly price had I just added the drive offs to cap cost (the two methods were within a $1 of each other).

I thought I saw someone do this once, but with the current calculator I’ll take the drive offs shown and then put that into the down payment part of the calculator as a negative number (hard to do on mobile version though - I have to type a negative number elsewhere on my phone and then cut and paste). It takes a few attempts to get it to exactly offset the drive offs, but once the calculator shows the drive offs at $0 then the monthly price shown is pretty accurate.

Yep, I did it on my last lease.

Sorry to resurrect this, but could someone fill me in on a basic point here please:

If leasing a car with 0 down and 0 DRIVE OFF fees (aka, walking out without paying anything and the keys to the new car), does that mean that the first month lease fee is covered and the remaining 35 payments (assuming a 36 month standard lease) are the responsibility of the lessee?

Thank you for the help in advance.

You are correct. If that is the way your deal is structured then you’d be responsible for 35 payments. In some cases, only the first month is due at signing meaning lessee is responsible for all 36 payments on that car.

1 Like