I agree, but I don’t really know how to calculate it manually.
After talking to several dealers I see that they’re not fond of giving out these low deals, one of them just told me that the advertised discount was a mistake and they’re in the process of updating it on their website, I told him it’s false advertising.
It’s a huge waste of time to pay attention to advertised deals. There is always some BS and ambiguity built into them. Establish a well-researched target deal and pursue that. The only thing a dealer website is useful for is looking at inventory options.
Atta boy! There ya go! Awesome!
Yes, it does. Online calculators can be confusing. I’ve seen posters confused with regard to inputs and so have you. If you build your own calculator, spreadsheet, etc., you’re not likely to encounter nebulous, confusing situations. Equally important, is understanding the output which leads me to ask whether you have any intention of answering my question regarding the one-pay amount that I posted above.
PM me and I’ll be happy to help you.
If the dealer isn’t transparent or is uncooperative or showing signs of incompetence, WALK AWAY AND MOVE ON!
Leasing is time-consuming and requires a good deal of study and attention to detail. If you don’t have the time to commit, perhaps your best alternative is a good broker. There are some outstanding brokers on this website. However, if you’re willing to commit your time and resources, always be sure to control the deal. That can only be achieved with education which breeds confidence and increases the likelihood of success.
Let’s look at this example. You have a dealer worksheet showing a mf of .00055 and the OP acknowledging it. They still opted to use the .00016 mf in the calc. That’s recognizing what the input needs to be to match the deal and still opting not to use it. The tool being used would make absolutely no difference there.
You’re correct that if one takes the time to learn and understand the inputs that that will go away, but that’s about learning how a lease is structured. Again, the tool makes no difference there. This is an understanding problem, not a tool problem.
That’s just a silly mistake that anyone can make. Nothing confusing about that.
Let’s consider a much more challenging scenario. Use the calculator to fill in the blanks…
MSRP 49620.00
SP 42195.00
Acq fee 995.00 (CCAP’s is 595- is this a CCAP lease?)
Capped Add-ons 692.53 (needs to be itemized)
Gross Cap 43882.53
CCR _______________
Adj. Cap _________________
MF = .00055
RV = 31260.60 (63%)
Term = 24
Sales Tax Rate = 8.125%
Rebates = 10000.00
1st Payment ___________________
Sum of the Payments Tax (NY) _________________________
CCR (partial rebate) __________________
CCR Tax __________________
Dealer Doc Fee 477.00
Doc Fee Tax 38.76
Title/License 215.53
Total Due _______________________
Rebate Credit 10000.00
DAS ________________
The big question is how much of the 10000 rebate should be allocated to the CCR so that the balance EXACTLY covers all upfront charges except the first payment. Lots of luck!
I’m not talking about advertised lease rates, but rather advertised MSRP and dealer discounts, once they add all rebates and see that the payment is so low they suddenly claim that the advertised discount is wrong.
I think I might have figured it out by now, otherwise I’d be okay to deal with a broker, as long as he/she is fair.
Like I said, ignore dealer advertisements.
They love to show big discounts that have incentives already rolled in or are contingent on including their $3995 protection package, etc.
“[quote=“mllcb42, post:23, topic:652018”]
Establish a well-researched target deal and pursue that.
[/quote]
Understood. So what’s your approach to researching it and working out a deal?
Identify a vehicle I want, establish a well-researched target deal, make the dealer an unambiguous and immediately-actionable offer. Most will say no, and that’s ok.
There are lots and lots of data points available here between broker listings and shared deals to work out what an aggressive, but feasible, dealer discount target is. Can build out the deal from there using either the LH calc or formulas by hand if you want without add ons/mark ups. Up to you if you’d rather make an offer that breaks down all details of the deal or just monthly payment/due at signing about, but nothing in between those two extremes should be done. Either every detail or only monthly/das. Anything in between leaves room for ambiguity.