I got this ‘deal’ from a dealer in Florida. They’re trying to tell me that they included the $14,950 in rebates. I see it on the sheet, but, I’m not seeing it in the savings. I’m trying to figure out what is wrong.
It should definitely not be $1200/month 
Maybe I’m wrong? I’ve been so before, and I will be again…but, I put this into the calculator and my payment with $0 DAS was in the $500’s.
Thanks in advance.
For starters they did it as a one pay.
Here is what I got from the calculator. Also on the dealer screen there is no acquisition fee that I believe is $995.
The rebates should reduce cap cost. It’s still showing $62,844.92. The cap cost should be selling price - rebates or $46,398.22
To start with, the discount is very weak on a 2024 4xe. If they really gave you this, I would find a different dealer because these guys don’t know what they are doing.
Oh, it’s very real. I told them multiple times that their paperwork is wrong, the manager insisted it was correct. Also, you are completely correct, the dealer discount is terrible. Based on what I have been seeing, a dealer discount of around $10k before incentives is more in line with the current market.
The sales manager must be completely clueless if he looked at a quote on a $65k Wrangler with $20k of discount and incentives and said “that looks normal” when the computer spit out a $1200 payment.
At the end of the day just make them an offer based on 10% (or whatever) pre-incentive discount and all the rebates calculated correctly.
They did. Let’s take a quick look…
Single pay including tax = 24 x 1206.20 = 28948.80
Due at Signing (DAS)…
Sigle pay including tax 28948,80
Rebate 14950.00
DAS 13998.80
A few things…
??? Let me know.
The ‘Net Cap Cost’ of $62,844 - that’s a problem for your deal. That number should be about $15k lower. Your payment calculates exactly right using their net cap cost listed.
The question is how does the dealer discount of ~$4k and ~$15k of rebates equal a net discount of $3k. That tracks if you add back an acq fee and a dealer fee, IF you had zero rebates. They are either intentionally or unintentionally swallowing the rebates in the calculation.
Huh??? The 14950 rebate is applied upfront. See my post above. Don’t know the tax treatment given to rebates in FL. I do know that IF the 14950 rebate was used as a cap reduction, it would be subject to tax. If applied upfront, it may not be subject to tax in FL. But, again, I’m not sure. I know that the dealer did not tax the rebate. I agree that the dealer discount is very weak at best.
You don’t have to apply rebates as cap cost reduction. Net cap cost isn’t at discussion, you can have a due at signing amount covered by rebates.
The 28,948 advanced payment is the 1206.20 ‘monthly’ payments as a one pay or lump total sum. Then the desker is taking the rebates of 14,950 out of that to get to the 13998.80 figure. The 1206 is a left over number throwing people off.
With that, this comes out to 583.29 / month effective. Now if there’s a mistake in how this is desked, as a one pay when its meant to be a monthly could result in a mf bump/drop depending on the bank used (in this case SFS, I’d need to double check) or the manager being… different. I’d have to look at the programs and reverse engineer the deal in order to tell you that, and it’s a tuesday so I don’t feel like that.
I think that’s the issue here, the dealer desked the deal as a one-pay but it doesn’t sound like that’s what the OP was after.
Well SFS is basically not charging rent charge on this at 0.02% APR / 0.00001. SFS one pay reduction is IIRC 0.00035 or 0.00036, with a minimum MF of 0.00001 (what is used in this desk as a ‘one pay’) so if the dealer doesn’t mark it up when looking at it as a monthly lease we can just divide this one pay by 24 to find the actual lease payment, and they should be exactly the same.
Suprise: I’m bored and broke it down anyways 
As @delta737h mentioned previously, the rebates here are being used to reduce the due at delivery amount in the one pay and are not being taxed, they’re ‘not’ being treated in the software as capitalized cost reduction subject to tax. If that changes during the shift to a monthly, like being shifted to a capitalized cost, then the payment would indeed change, so I’m thinking the dealership made a mistake here on the tax treatment.
That would be my guess. It’s hard to imagine that a rebate would escape tax in FL regardless of whether it is used as a cap reduction or applied upfront.
The net cap is exactly right according to their payment. The rebates are getting swallowed somewhere. The note/loan balance owed on that contract would be $62,844.92. I don’t know the system they are using, but at the end of the day, the deal is written where the customer owes 24 payments of $1206.
What should it be?
Post a calculator link for what your target is.
Attempting to catch someone’s mistake or reverse engineer their numbers is a waste of time.
Agree! Let’s look at the math… Note that the capped fees are 989.00 and 507.70.
Base Monthly Pay = .00001 x (62844.92 + 35629.20) + (62844.92 - 35629.20) /24
= 1134.97
Monthly payment = 1.06276 x 1134.97 = 1206.20
Single pay including tax = 24 x 1206.20 = 28948.80
Rebate = 14950.00
DAS = 28948.80 - 14950.00 = 13998.00
No, they’re not. How do you think they started with an initial payment of 28948.80 and ended up with 13998 due at delivery? They are deducting the rebate from the 28948.80 upfront. This is a single pay lease. There is no cap reduction although the rebate could have been used as such. The Gross Cap = Net Cap = 62844.92.
No, it’s not. The MF has been discounted to .00001 applicable to a single-pay lease. The single pay amount is determined by calculating the discounted monthly payment and then, multiplying it by the term of the lease as calculated above.
Not to be a nitpicking jerk, but it was already 0.0001 on a monthly term, and on one pay since it’s already at the floor.
Yes, it’s a waste of time but an educational experience, doubly so to that OP should find another dealer.
Agree to disagree. I leased this exact same Jeep at a .00001 money factor 2 weeks ago for $350 per month. That has nothing to do with a one pay. Argue with the lease calculator I posted. The dealer is expecting this dude to pay 24 payments at $1200. Feel free to keep doing calculations.
I never asked for a one-pay lease.
Money factor on this lease is .00001 without paying it down and it doesn’t need to be a one-pay. I am not disputing that if I owed $62,844.92 coupled with the RV that the payment would be $1200, but the price was $62,844.92 BEFORE incentives ($14,950)which should bring the cost down to around $47k. Which should bring that monthly number down considerably.
