I received the below lease from a dealer in Northern California. My dad (former car salesman) used to always help me with ensuring I don’t get taken advantage of on car leases, but he’s since passed.
I wanted to get a ‘deal check’ to see:
Is the dealer is trying to ‘hide’ anything in this lease?
Is my LeaseHackr calculator setup correctly (link provided)?
Terms:
2024 MB EQE 350+ Sedan
Prior courtesy vehicle (6,104 miles)
36 months/7,500 miles a year
$0 Down
Eligible for the $7,500 EV credit
Original MSRP: $86,300
Purchase price: $55,971
Lease protection: $1,895
Residual: $40,198
MF: .0013
Monthly payments: $450/month & $511/month with the lease protection package.
Don’t use online calculators. I can tell you that the MF = .00140, not .00130. I did all the calculations manually, including the 6355.48 CCR, and the dealer’s calcs are accurate.
Suggest you research selling prices in your market and that you take @max_g advice regarding incentives and discount as well as the lease protection package which is a huge rip-off IMO.
I just signed a lease for a MB EQE. I think I got a great deal on it & would like to share it in Signed, but I can’t get the calculator to align properly. Could someone help setting up the calculator & sharing the link?
Terms:
2024 MB EQE 350+ Sedan
Prior courtesy vehicle (6,104 miles)
36 months/10,000 miles a year
$0 drive off
$4,500 in MSD (total of 10)
Received the $7,500 EV credit you will see the $7,500 EV credit + the $4,500 in MSD as the $12,000 due at signing … but it was $0 drive off
Original MSRP: $86,300
Purchase price: $55,971
Residual: $39,361
MF: .0013 (I think)
Monthly payments: $435/month
the KY dealer incorrectly calculated the payment tax. As you had stated, OH tax is levied on the sum of the base payments, not the individual payment streams as shown in the lease agreement. This is what usually happens when an out-of-state dealer computes taxes for another state. This means the payment calculations are inaccurate as the CCR is wrong as well. The CCR is a calculated number. BTW- The dealer used a sales tax rate = 7.75%.
The MF = .000140. The discounted money factor, according to LH, is .00010 for 10 MSD’s. Not sure if this is accurate or how MBF adjusts the MF for MSD’s.
You owe 4500 for MSD’s at signing. So, it is not, strictly speaking, a zero drive-off lease. See 5(b)(3)… amount to be paid in cash. However, b/c of the tax calc error, 10 MSD’s are likely to be 5000.
I can do all the calculations manually if you like. I’m not a fan of online calculators preferring, instead, to use my own programs that I’ve created.
Strongly suggest you formulate a target deal and then, create a one-page lease proposal and email it the dealer SM.
This is great feedback & you are correct … I did so $4,500 in MSD so it’s not technically a $0 drive off. This car is in California so I believe the tax rate is 7.5%.
I’d greatly appreciate it if you could take a try at a calculator? I’m beginning to think the deal wasn’t all that great based on all of the errors you are finding with the financials. Here is my best attempt at the LH Calculator which is wrong:
Note that here is 7500 of lease cash. A portion (6432) is used as a CCR and the balance (1068) is used to pay all upfront fees excluding MSD’s. The 6432 is a number that must be calculated. The LH calculator cannot perform this calculation unless you do rial and error or guess and check.
According to m LH calc, you owe 3500 MSD’s at signing following by 35 payments of 445 each. I have not verified these calculations manually.
I manually confirmed the most recent lease contract calculations, and they are correct. The dealer used a sales tax rate of 7.75%. OP will need to verify. Not sure how MSD.s should be calculated. The LH calc shows 9 MSD’s for a total of 4500 suggesting that the payment is rounded up to the next whole 100. Dealer may have done the same OR, rounded up the payment to the next whole 50 triggering 10 MSD’s for a total of 4500.
