Is it adjusted cap cost?
I use this calculator to convert the rent charge to mf
https://www.alphaleasing.com/Calculators/MoneyFactorOnLease.asp
Yes, $31,042.65 is the ACC right off the Agreement sheet
Are you overpaying by $20/mo? No. I come up with about $13/mo. ;b
Not sure where your $800 came from. $51,103.25 x .00056 = $28.62 x 36 = $1030.32
Looks like they used about .00082
That’s why you don’t trust car dealers and double check everything and make sure the numbers match. Someone mentioned leasematic on here, cool app and great way to double check everything when your in the box, aka the finance guys office. MF are never printed on contracts, so they can tell you whatever they want, if you don’t check the math, they keep your money. They could even show you a screen shoot with the MF on it with the payment you agreed upon, but unknown to you they have some padding worked into the payment that you can’t see. Always get a break down and total cap cost, then check it for yourself.
"90 days ago I closed on a 2018 Subaru Outback. I had agreed to a MF of .00056 to accommodate an 18K mile per year term. There was nowhere on my P&S agreement where it indicated MF as a decimal point numerical value, it just had the cash amount."
Your situation is exactly why I always insist on having the dealer’s lease worksheet which discloses the money factor used. Your money factor on this deal, assuming your ACC and RV are accurate, is 0.00082, not 0.00056. Apparently, they marked-up the MF. Unfortunately, the Federal Reserve Board’s Regulation M does not require that MF’s be disclosed in lease contracts.
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You keep referring to this. Are you in finance?
Nope. I teach math and economics so, I’m well acquainted with the FRBB… I used to consult with attorneys many years ago on matters involving truth in lending disclosures (Reg Z).
What you said is so true. Amen to that!
Did you agree to the final monthly payment of $XXX,XX before signing? When you signed - was it the same payment and DAS as agreed? If all stayed the same - why do you care if they marked up MF on you? In the end you got what you agreed to, but with marked up MF. So you are not overpaying.
Maybe he agreed to a payment of $XXX.XX and DAS with the understanding that the MF was 0.00056. So now, perhaps he thinks he agreed to a higher payment than it would have been had the MF been 0.00056.
It’s so important not to be a payment buyer like most people. You don’t want to leave money on the table. The only way to guard against it is to accurately calculate the payment, taxes, and residual using vetted data. A lease worksheet is the place to start. And, then, those numbers, both input and output, must be validated.
Duh… Of course it was his understanding, that’s what he said. And of course he should have calculated everything with the correct numbers and compare to the final numbers that he signed. And this is my point - if he did that and signed the numbers that he calculated and agreed to - then everything else is irrelevant now.
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If you don’t go over every number and review everything, shame on you. Don’t whine about months later. You can save my comment too, but then again I worked in the car business for 7 years, I’m already a lost cause. Oh and this was for @delta737h
It’s all good guys; no butthurt here. It was my first lease. Lessons learned. The sales manager agreed to the terms I set forth which included MF of triple-zero 56. Looks like I got burned. It’s OK. I’ll be less trusting and better prepared next time. Appreciate the analysis and critique.
When I was doing my own math in preparation for the close, and then I saw their math and the additions and subtractions added up, I just figured I had made a math mistake. The good news: that $20 extra I’m paying every month will be a monthly reminder that I’ll carry with me right in to my next lease: these dealers are sleazy scumbags and you can’t trust them for a second.
Just got it. Very nice. Thanks for the rec.
Sorry that happened to you. Just make sure you calculate all the numbers before signing next time.