For another example, let’s take a look at this offering from a dealer on a 2020 Volvo XC40. This time, there’s a particularly interesting tax complication as the deal at hand is in Chicago. The city of Chicago charges an additional use tax on top of the Illinois sales tax, so this deal doesn’t fit in under the normal state tax options in the calculator.
Here’s the information provided by the dealer:
First section is fairly self explanatory
Vehicle is volvo, MSRP is as listed, and there is nothing extra being added in to the selling price as listed.
The lease terms are also fairly cut and dry.
We can, however, use this as a good example of how the miles per year button works. Notice how the dealer quote lists the residual value as a base rate of 54% and then adjusted 4% for the 7500 miles?
The same could be done in the calculator by inputting the base rate at 15000 miles
and changing the mileage selection to 7500.
Again we start with the downpayment set to $0.
Incentives added as listed in the deal sheet.
If you independently verified the incentives and found that the dealer had rolled some of the incentives into the dealer discount, you’d want to separate them out here and make sure the sales price was adjusted accordingly.
Taxes and fees are the interesting one on this deal, particularly the government fees
Acquisition fee is as listed.
Dealer fees consist of the dealer doc fee.
Government fees are the sum of the extra fees:
as well as the Chicago tax
9% sales tax is ALSO applied to the monthly payment
(Don’t live in Chicago if you ever want to lease a vehicle)
As a result, the calculator outputs
This is a good bit off of the $507.87/mo with $808.87 drive-off that the quote offered.
Never fear… when the drive-off amount differs, we can adjust the down payment figure to shift money from the drive-off to the monthly. In this case, with a little trial and error, changing the down payment amount to:
changes the output to just about perfect