Cap cost reduction is a down payment. You’re paying off some of the lease amount up front.
Disposition fee is listed because it gets itemized in the contract.
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Formally, it’s a combination of ypur down AND any fees / taxes you roll into the lease. Can be below 0, which makes it a cap cost increase.
Well, if we’re going to be formal, let’s be correct.
A cap cost reduction is an amount that is being applied, either directly in the form of a cash payment from the lessee or an applied incentive, to reduce the gross capitalized cost and establish the adjusted capitalized cost. The gross capitalized cost is the sum of the agreed upon value (selling price) of the vehicle and any capitalized fees/taxes.
The cap cost reduction, when made up of cash due by the lessee, is often referred to as a down payment, with non-capitalized fees/taxes being referred to as drive offs. The sum of the drive offs and the down payment would establish the amount due at sale. Sometimes “down payment” is used instead to describe the amount due at sale, conflating these terms. It’s not unusual for the dealer or lessee to establish a specific due at sale amount and the cap cost reduction to be back calculated from that value by subtracting out all of the drive offs.
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When I plug in the quoted numbers into the lease calculator, the monthly payments are off by $70. It shows only 379 (post-tax amount) as opposed to 448 in the quote. Am I missing something?
Post your filled out calculator and we can help diagnose.
Please see the calculated numbers - I didn’t find comparable fields for total capped fees and total initial fees in the calculator. So, I put them under dealer and government fees, respectively.
Your calculator shows a due at sale amount of $4315. The dealer offer shows a due at sale amount of $2000. You always need to make sure you’re matching due at sale amounts when trying to match monthly payments. You can’t have one without the other.
This goes back to the discussion a minute ago regarding “down payment” vs “due at sale”. You entered $2000 in as the “down payment”, which the calculator treats as a cap cost reduction. The dealer sheet has $2000 listed as the “due at sale”, which is the sum of any cap cost reduction and drive offs.
If we take your calculator and make the due at sale amount math, the monthly comes out to $448.
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Looked at your calculator. Thanks for that clarification. It kind of makes sense now. Why is the pay dealer fees upfront ticked, but not the acquisition and gov fees?
Without having the breakdown of fees from the dealer to know exactly what they’re applying up front, it’s hard to do that exactly. I unchecked enough to bring the DAS down under $2k and tweaked the down payment amount to make it equal out to $2k.
It makes sense now. So, the numbers that can be asked to be tweaked at the dealership to bring the monthly payment down would be MF, dealer fees, and any reduction in the sale price, right?
You’re unlikely to make much headway on the dealer fees. Easier to just target the selling price.
MF might be able to be reduced. It depends on if the mf mark up you’re seeing is the dealer marking it up over buy rate or if the higher mf is credit dependent. It largely depends on your cosigner’s credit.
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I understand now. Thank you!
I was never able to, or heard of anyone being able to negotiate dealer fees, those are usually written in stone.
Have you tried a broker from this site?
Everything is negotiable. Just account for the dealer fees in the discount that you are asking for.
Haven’t yet considered getting the service of a broker. Thought I would try and have the dealerships bring the numbers down by myself first. Any that you can point me to here?
How far are you from Florida? AutoLeaseNinjas has a Mazda thread in the Marketplace.
I am just saying, dealer fees are going to stay in the contract as they are. The sell price is negotiable.
I live in NOLA.
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