Guys,
This forum has inspired to attempt my first lease.
Planning to lease a pathfinder until the market correction happens
Here are the details,
PathFinder SV AWD
MSRP : $42,340
Selling price: $40,340
RV : 94
Money factor : 0.00339
North Carolina tax : 3%
I have put these numbers in the leasehckr calculator and selected 9 MSDs and Single pay option. But the effective monthly and total is coming higher than other similar deals .
Here is the calculation. Can an experienced lease hacker help me put these numbers correctly…?
I get the same numbers as the calculator except the MSD total seems to be inaccurate. The base payment is 229.57 (excludes tax). I believe Nissan rounds the base payment to the next whole 50. Therefore, your MSD total should be 250 x 9 = 2250. It appears that the calculator rounded the effective payment of 347 to the next whole 50 to get 350. so that your MSD total is 9 x 350 = 3150.This makes no sense. I know of no fund provider, finance captive or otherwise, that computes an effective payment for purposes of calculating the required MSD. Details of all calculations are shown below…
MF adjusted for MSD’s = 0.00339 - 9 x 0.00010 = 0.00249 … more about this later
RV = 0.94 x 42340 = 39799.60
Base payment = 0.00249 x (40340 + 39799.60) + .(40340 - 39799.60) / 18 = 229.57
Payment, including sales tax = 1.03 x 229.57 = 236.46
Single pay = 18 x 236.46 + 1.03 x (695 + 700) + 150 = 5843.13
Total Cost = 5843.13 + 395 = 6238.13… NOTE: you may not have to pay the 395 disposition fee.depending upon whether you lease or purchase another Nissan…
Effective payment = 6238.13 / 18 = 346.56 round to the next whole dollar gives 347.
A few things to note…
(1) You may want to vet the 0.00339 money factor. Is it the buy rate for the single-pay option? I know it has been discounted to 0.00249 to reflect 9 MSD’s. However, does 0.00339 include the discount for a single-pay lease? You want the single-pay buy rate less the adjustment for 9 MSD’s.
(2) You may want to vet the MSD total. As stated above, unless I’m mistaken, I believe it should be 2250, not 3150. Not sure what NMAC’s policies are for MSD’s.
Thank you very much for chipping in.
I believe this calculator is doing something weird.
For example, this below deal for a pathfinder SL…a fellow member posted has only 91% RV which is 3% less than my example (mine is 94%) and his sale price is $1k more.
His numbers using 7% tax rate ended up $279 effective including $395 disposition fee, He also posted his contract partially, which makes me believe his calculation must be true.
Though Nissan’s money factor has been 0.00339 since January, he used a different number in the calculation.
When i use his calculator and enter my numbers such as 94 RV , 0,0039 MF and my sale price…i am getting $181 effective per month.
But if i start building a new calculator starting with entering the MSRP, the calculator takes me to $349 effective.
Here is his calculator and the contract for reference.
I’m not really following what you are trying to do, but when I take your calculator, zero out the tax, and up it to a 9% discount like the signed deal, I get $232 effective with your higher MF and lower MSRP.
You aren’t, however, going to get 9% off because that takes you well below the RV. We’ve seen on these forums a number of times where contracts are kicked back because the lender does not want to accept an RV higher than the sale price.
That $239 calculator and the controller is posted by another member of the forum based on 91 rv for a SL version of pathfinder. His sale price is $1 more than SV version and his RV is 3% less than SV version, which I am considering to lease.
However his calculations /contract ended up at $239 whereas my calculation (posted in the first post of this thread) is coming out pretty high in comparison despite my RV being more and sale price being less.
I am just trying to seek help to double check if I have done anything wrong in my calculations.
You are overlooking the MSRP difference. If you get 9% off MSRP and the RV is 91%, that means $0 depreciation. Yours still has depreciation in the cost. If you get your sale price to within $1 of the RV, you’d have the same depreciation as him, which would bring your calculations much closer. There is nothing wrong with the calculator.
Hi,
Thank you for correcting the MF.
However the calculator is behaving weird.
For example, keep the sale price same at $40,340 , just add $1 to the MSRP …as $43,340.
Now the effective monthly is coming to $249 from $300 .
Aren’t the OTD numbers be based on the sale price but not on the MSRP?
On the other hand, if I take the other member’s (who posted his contract on pathfinder SL) calculator and adjust my sale price, RV …then it’s coming out as $181 effective monthly.
Why would a rv be based on sales price? If a bank is setting estimates of lease end value, would it make sense that two identical vehicles would have different values in 3 years because one driver got a better deal up front?
I’m not seeing the calculator do that. If I add a dollar to MSRP the due at signing only goes up by $1.
Sounds like some more reading should be done on leasing. I will say this deal is pretty decent. The closer you can get the cap cost down to RV the better the deal, the thing with Nissan is that you have to have cap cost at least $100 more than RV. So the SL trim deal you keep referencing got a bigger discount because of lower RV
Yes, I am a newbie at leasing knowledge and I have to learn a lot from experienced members here.
Thank you very much for clearing my confusion.
It’s funny that, though the SL is expensive and the sale price is more, RV is less…due to the Discount percentage he ended up with less Effective monthly OTD.
I will now try to put my offer more in line with his.
Read this topic as well. It’s on the frontier but the lease structure is exact same that you are looking for. I’m trying to get a Pathfinder right now as well and found this topic super helpful.
I looked at the contract and all my numbers agree with the contract except (1) the MSD of 3600 (item 4c), and (2) the sales tax of 300.05 (item 5j). The only taxable amounts shown on the front page are the base payment of 3352.50 (item 5g) and the acq fee of 695 (item 4h). 300.05 / (3352.50 + 695) = 7.41% Something is amiss.
I would need to see page 2 of the contract but prefer the dealer’s lease worksheet. I don’t have a crystal ball and I can’t begin to guess. I’m not even sure of the sales tax rate that was used. All I know is that something is missing.
Finally, 9 MSD’s amounting to 3600 seems extraordinarily excessive meaning each security deposit is 400. Good grief, the contractual base monthly payment is 186.35. Rounded up to 200, yields 9 MSD’s of.9 x 200 = 1800
I won’t comment any further on the lease calculator because I prefer to use only programs that I’ve developed.
mllcb42 states:
“MSD amount is based on the base payment as calculated prior to the mf reduction, so it’s off a much higher base payment amount”.
Even with an MF of 0.00390 prior to mf reduction, the monthly base equates to 346.91. Rounding up to 350, yields 9 MSD’s of 9 x 350 = 3150.
I think we both know that the MF “prior to mf reduction” is nowhere near 0.00390. So, with all due respect, what you’re saying doesn’t make sense to me. What’s the point of using mf’s to compute MSD’s before the discount is applied. To incentivize, MSD’s are calculated using the discounted mf. Am I missing something?
In order for 9 MSD’s to total 3600, the mf would have to be at least 0.00394. For this deal, unless I’m wrong, that doesn’t seem even remotely possible. So, now I’m wondering what NMAC actually did or what mf they used.
All I’m suggesting is that the poster vet the 3600 as it still seems unrealistically high. BTW, many thanks for the NMAC information. I didn’t realize that they computed MSD’s based on the current mf and not the discounted mf. Even so, one would need an mf of at least 0.00394 (an interest rate of about 9.46%) to get 9 MSD’s of 3600. This seems highly unlikely but, again, I could be mistaken. Don’t most fund providers use the discounted mf to compute MSD’s? Is NMAC an exception?
It doesn’t really matter. As long as NMAC accepts the lease, whatever dollar amount is on the “security deposit” line of the contract will be returned to the lessee.
If the foregone interest on $450 worth of deposits over 18 months is material to the lessee, we have much bigger fish to fry.
.
