@Jon what approach did you use on your last lease deal? How did you get them to send you a breakdown that they trust? Is going in person a better idea? I’m open to ideas and suggestions
I just negotiated sales price before incentives. Once was agreed upon, I asked for a lease worksheet and confirmed the buyrate MF. The numbers matched the calculator, so I went in to sign. I got a Lexus though and they only have the captive. You need to confirm which bank the dealer is going with on your deal.
I used the numbers you provided and plugged them into LH calculator. I’m getting $446/month (tax included) and zero drive off. My guess is they’re adding xtra fees and not all $8250 rebate can be applied to lease.
Hey @JAD1497 thanks for running numbers. I am still not getting anywhere close to $446/month when I plug into calculator. Any chance you could send me your breakdown on how you plugged those in to the calculator? I think I must be doing something wrong…
Here is my breakdown for calculator inputs:
MSRP:52560
Sale Price: 38498
MF: .00015
Doc Fee: 0
Acq Fee: 0
Mi/Yr: 12k
Months: 36
Down Payment: 0
Taxed Incentives: 0
Untaxed Incentives: 0
Post Sale Rebate: 0
Zero Drive Off: Unchecked
Residual: 50%
License Reg Fees: 0
Sales Tax: 8%
Levied on lease payment
These variables in calculator give me $377 total payment including tax. Where my hand calculations (pictured above in thread) give me a total payment (depreciation + finance charge) of $349.11.
You have to account for doc fees, tax on rebates if applicable, acquisition, and license/registration. I’d say that’s close to $1,000 right there.
Aquisition fee is $595, TTL and doc fees close to $800, tax on $8250 rebate is close to $800.
I understand that I need to account for fees (doc, acq, title/reg, taxes on rebates and tax on payment) but all I’m trying for here is to see the total payment prior to all that. In other words (depreciation + finance charge) for total base payment prior to all fees.
Why am I wanting to omit fees/taxes right now?
Because I want to trim away all of these variables and ensure I am calculating the base monthly depreciation and base finance (with numbers above) charge correctly. I’m looking for someone to walk through my hand calculation (pictures on thread) and say: “Yep I put those numbers and calculated by hand also and I got the same monthly payment a you did”
My major uncertainty is my MF finance charge calculation of $9.71 per month. I don’t know if I did that correctly.
Those are part of the cost so I’m confused why you wouldn’t include them, it’s like not including the destination charge
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I think you are really overcomplicating this. Hand calcs are irrelevant to a sales person. If you try to show them hand calcs, they will just stare at you and then say "my computer is telling me this payment. What you need from the dealer is a breakdown of fees ( registrstion, acq fee, tax on rebate) these are non negotiable. Then you need to verify the MF is not getting marked up. If all that is in place then it’s just the sale price of the vehicle that can really change the payment. If you want a sub $400 lease everything included you need to put money down or the dealership needs to knock off more money. It’s that simple.
BTW, your hand calcs are mathematically correct. Without all the fees and taxes you have a base of $349
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Awesome thanks a bunch for answering my question @JAD1497.
I know I’m going OCD on this but I was having trouble moving on to the next stage of dialing in fees & taxes if I did not have full understanding of the equation for calculating finance charge. As much as I am driving forward to make a deal and get a truck my first priority is education and learning as I’m going through this. Thanks again.
By the way the dealer that said “We have computer programs to do that, sorry I cant help there.”
got back to me saying he would give me a lease detail breakdown on Monday.
Alright after working with this dealer for over a week and almost walking off - they were able to get me a quote worksheet. This is for a $0 Down lease on a 2018 RAM 1500 BigHorn Crew Cab 4x4 EcoDiesel.
I thought I understood how to calculate a lease but now after seeing this sheet I’m even more confused. It is vague and I can’t tell how they came up with their numbers.
MSRP of 52,560
Discount of 5812
MF: Is consistent with what I’ve been using
Residual is also consistent
Rebates are also consistent with numbers I’ve been using at 8250
Item #8: (A.M.O./WeOwes) - What is this?
Item #10: (Ttl Capped fees) - What is this - is this the lease acq fee?
I cannot figure out how line 14 Ttl Cap Reduction of $6398.57 was calculated and Adj Cap Cost of 42,634.43. I’ve tried calculating out numbers a few different ways but getting nowhere.
Here’s a LH calc with your numbers. Looks like they marked up your acq fee from 595 to 895. Are you having them install anything aftermarket which would total $1390? [I added 1390 to your selling cost to make the numbers work out.]
Nope not adding anything aftermarket.
I’m going to reach out to them today to get some clarification on lines 8, 10, 14 and 26
Also for understanding, does anyone know how they calculated the Adj Cap Cost 42,634.43? I’ll keep studying and trying to sort out and post when I find out.
If it helps you at all, last week i got into an '18 Ram 1500 Big Horn Crew Cab with the 5.7L MSRP of like $48k for 349 before tax. Figure out what the difference in cost is between eco diesel and the 5.7 package, divide that by the amount of months in the lease, and use that as a goal price or try to beat it. I’m sure there may be some extra room on it. The dealers near me were advertising $299 no money down on '18 Big Horn Crew Cabs with the V6 and i just shopped the deal to other dealers that had better inventory. The '19s are starting to roll in so Im seeing a lot more dealers advertise aggressive leases on the '18 stock.
Last bit of advice with where you are in the deal process; counter the dealer with the monthly payment you want to be at. Doesn’t matter at this point how they get to the number as long as the duration of the lease doesn’t change. Good luck!
Nice thanks for the advice. Was that $349 for a $0 down deal and no trade in?
I’m still waiting for dealer to get back to me on some clarifications on the lease quote worksheet and I’m getting ready to counter with my monthly payment offer.
Not a ram but got this offer for an F-150 last month. I know Rams usually lease better than 150s. My wife’s dad also just leased a big Horn v6 for 272 sign and drive last month as well. The f150 was 36 15k a yr and the ram was 36 12k a yr
Random question - is it possible to lease a new 2017 truck? My thought process is that there are still some brand new 2017’s that are on dealer lots and dealers would be more motivated to moving them at a lower price.
I think @305Hackr mentioned that they would not lease a 2017. But some dealers I’ve talked to have been open to it but discourage it for vague reasons “you are better off getting an 18, its a better deal” which I do not necessarily believe.
No chance on a '17, probably no factory support on leases and a terrible residual.
Yeah a lease on a 17 will not work. Probably no rebates and a residual that is much lower.