I understand what you did with the numbers. What I am struggling with is how to make the LH Calculator line up with what I see from a dealer. I am generally good with numbers and it is frustrating that I can not resolve the different to a couple of bucks or less. This means I am either not understanding calculator inputs or what is presented by the dealer. I also can not tell what the MF is on the dealer site, but I am getting close enough.
I am taking your advice and sent some proposals to dealers for what I would like to pay. My struggle is the color combo is limited with only 2 in the region. The pricing I have is for my second choice.
New question - Why would a delaer price similar cars so different. The dealer has 12 cars on the lot all with very similar price since just the accessories vary. Most of the cars have a discount listed on $750-1000, but 2 have large discounts of over $3000 & 4000. I asked and am told they are all new with no real miles. If I look at Vin numbers these 2 have the lowest number, so I guess have been on lot longest. Still it seems funny that the discounts are so different, any logic to this that would be useful knowledge?
Not gonna happen because the dealer capitalized the first [payment. The capped payment of 709.66 is wrong as it does not match the 733 payment. Consequently, both are wrong. When I looked at the posted dealer worksheet, I knew it right away. This is why I usually take a dealer’s worksheet with a grain of salt and only use it to extract useful input data to vet and then, create my own target deal. To that end, here is my LH Calc in which the payment is $2 lower than my manually calculated target deal posted above… it’s the best I can do with this calc and is why I prefer to do my own calculations using programs that I developed.
According to my calculations, the dealer is using .00265.
BTW, If you haven’t done so already, you should check Edmunds to ensure you’re getting the MF buy rate (.00265 seems high) and that the residual factor is accurate. I used the Dealer’s 50% but forgot to change the percent from 58% to 50%. However, the residual I calculated was based on 50%.
I agree and is the only thing I can think of. For some reason, the dealer hasn’t been able to move them for whatever reason (color, part of a different delivery lot, equipment). Did you compare window stickers? Do these two have dealer-installed options?
I think I have a deal I am going to accept on a car as follows. I could save another $1000 with the dealer with the deal at the start of this thread, but I this car is my #1 preferred color choice and my local dealer, so that is worth the price difference of $1000 to me.
PS - The dealer told me the rebate is paying all of the taxable fees. If the payment does not matter much is there any reason to put down more than 0 on the car? How about 33 vs 36 mo. Is the lower money factor worthwhile?
Taking the 33 month lease is the no-brained decision here. It will mean you need to get another car a few months earlier, but you were probably going to do that at the end of the lease any way, right?.
Actually the only reason I am leasing is the huge CRC. Normally I would buy a car and keep it 8 + years. I had my RX300 for 16 years. If I were buying I would buy a GV70 3.5.
The plan with the lease is I get to try an EV for 3 years and I will also see if the value plummets and I return it or if I like it and the value stabilizes so I keep it.
I think your ides of trying for 3 years is a good one, but I doubt you will want to buy at end of the lease. The technology is changing so quickly that today’s EVs may be obsolete in 3 years. This is one of the things driving the big depreciation in EVs. Look at the out of pocket costs for 33 vs 36 months. You are paying thousands more for the extra 3 months. I would not assume you are going to buy at lease end. That extra money will also earn interest in the bank.
Not true. The 20000 rebate is used entirely as a cap reduction. Look at the dealer WS. All taxable fees have been capitalized. So, tax is being levied on the base payment which captures all taxable fees as well as non-taxable fees (Gov. fees.). BTW, your contract payment should be 684.19 based on the info in the dealer WS.
No reason to pay anything upfront except the 1st payment if you choose to do so. I would have selected the 33-month lease.
I am going to do the 33mo deal after reading Wtmeyer logic. The why pay the 3% extra depreciation if I do not keep the car hit home with me to do the 33.
I see what you are saying and will make sure the paper reads correctly. I do wonder if the reason you are a few bucks higher is because he did that in the background.
Does a single pay lease ever make sense. I was wondering if I should consider that option.
Many people do one-pay leases on EV’s with the intent of purchasing it within 30 days or so. They do it to take advantage of the large discounts and the 7500 EV credit.
I did the 36-month lease with the higher money factor and lower residual. So, that could be the reason. My 36-month payment was 684 which is the same payment that you got using the LH calc. Just make sure we’re comparing apples to apples.
Actually not true for 33mo. I thought about that, but as others have said the pace of technical change is causing people not to keep cars. I like to think of myself as a guy who keeps a car for a long time, but we shall see for this and I think it is a coin flip, so I want to get the miles close.
Here are the numbers and for a 33 it does not save $.
People say and echo this all the time. However
I’ve yet to see any real evidence that EV obsolescence happens any faster than ICEV obsolescence.
What we are seeing currently is demand was overestimated when it was projected 3-4 years ago. It became obvious around 2023 and it takes a while for an industry with such fixed costs to pivot. Eventually they’ll realign supply with demand.
Rebates are a myth here. What’s the difference between buying a $50k car at sticker or paying $50k for the same car structured as $70k MSRP with $20k rebate.
Buy an RX or a GV70 or whatever you want. Buy the EV immediately after leasing it (defined as within 30 days) if you like it. But it’s almost guaranteed that you’ll not buy it if you take the lease to term. The optics just won’t allow it. You’ll look at the lease payments on a new lease and the finance payments on buying out your existing lease and you’ll choose the former.
I am not sure what the difference is. Clearly I am willing to try an EV as a 50K vehicle, but would not pay 70K.
You could be right about not buying it at the end, but I get 33 mo to decide. We leased our G70 because it had 7K incentive, with a low MF, and then bought at end of the lease, so it is possible.
Does this calculator look correct for a one pay?
What is the advantage of paying off withn 30 days or so. Seems everything is paid up and I could wait the full term to make the payment. Do you get interets refund for the fast payoff?
Your buyout will be the residual value minus the unearned rent charge, so it starts out well below the residual value and increases each month as rent charge is earned.
I calculated the one-pay manually and got the same payment. I would vet the money factor. Also, the dealer discount looks weak. I would research the sell price in your market.
I answered that question in my post above.
You need to read your lease contract regarding the calculation of the lease balance in the event of early termination. However, most lease agreements grant a credit for the unearned rental charge. Let’s look at some details as to how lease balances for the single-pay option are calculated in most lease agreements…
You can also use the PV function in Excel to find the Adjusted lease balance (ALB) for the single pay option…
ALB = PV(RATE, # of months remaining, 0,-rv,1)
Use the Excel RATE function to compute the monthly rate with the following syntax:
RATE = RATE(term, -(ACC - Base Single Payment Option), Res Value, 1)
so that
Annual Constant Yield Rate = 12 x RATE
ACC = Adjusted Capitalized Cost
As a follow up here is the deal paperwork I got today. Looks like everything is as expected. They took all fees and first months payment out of the 20K lease incentive rebate.
I know it was said the dealer discount looks week, but I am happy with it. I could have gotten another 1250 discount at a different dealer about 2 hrs away, but this was the best I could do for the color combination that was my number one choice. I could not move him on price but I did get about $600 of accessories that we desired (did not need) thrown in. So all in all I feel happy and it is a local dealer so easy service. I will also note that I offered another dealer (1.5 hr away) more for the same car with desired accessories and they rejected it.
I could have saved about 2K but would have had to ship the car or fly and bring it home, and it still would not have been my preferred color combo.
