Negative Depreciation on Car Lease Calculation

Ask the Hackrs
1

Is it possible to end up with negative depreciation charges?

I was quoted a selling price that with incentives, takes it below residual value.

So the monthly depreciation ended up with a negative value, is this possible?

2

The lease wont fund with negative depreciation

2 Likes
3

Thank you!

4

Does that mean their discount is too aggressive? How would I get it funded?

5

You will have to raise the cap cost by adding something like a maintenance plan (if allowed to be included in lease like Audi does with Audicare). Another option is to reduce the discount by taking a lower MF that keeps the payment the same.

1 Like
6

You can increase your mileage allowance even if you don’t need the miles

1 Like
7

Didn’t someone post a deal on LH where the dealership actually returned cash to the lessee to get the depreciation to zero? Basically a negative DAS.

Edit, here’s the deal.

I got distracted by the girl from Stuttgart. Thanks @Dany1122

8

Do everything possible to get positive depreciation, roll taxes, fees, 1st payment even if you have to.

1 Like
9

What kind of car?

10

The same one I asked you about.

11

Best thing to do would be to cap all of your fees so that the cap cost is above selling, you don’t want them to just raise the price

12

Yes, I am ending up rolling everything in and doing a one-pay. Thank you.

3 Likes
13

Hyundai is currently advertising a lease with negative depreciation - How will this fund? Special Finance Offers: Hyundai Auto Finance Car Loans/Car Leases | Hyundai

14

Its only negative because it hasnt yet rolled in the rest of the capitalized costs. Bu the time youre done with that giant asterisk, it won’t be negative.