Current Lease
MSRP: 22,040
57% of MSRP lease cost is rough, what kind of ride is this? Seems like would have been a better purchase.
Probably something Korean based on the list price, and rent charge.
@69gto update the title with year, make, model and trim
I’m placing my bets on a Kia Soul.
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Deal is from 2021. We are a little past checking deal.
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2021 Nissan Sentra SV
I’m trying to understand every line item before I go out in a few months to negotiate a lease on a new car.
One line item I’m confused about is section 4, line g: “Sales Tax Paid in Advance”
Also, though the GSM told me it was a closed-end lease, no where on this copy does it state that. Strange…
Thanks for the help!
Instead of doing it this way, go to the main set and lookup Leasing 101.
You are worrying about things you cannot change and need to worry about things that are choosable (MF mark ups, RV by model, Discount on price, etc)
What is your sales tax rate and to what does it apply (you didn’t tag your state).
There’s no tax added to your monthly payment.
It’s a closed-end lease because the residual value at the end is guaranteed and not subject to then-current market conditions.
I’m not aware of any major manufacturer who does open-ended leases.
New York State/City: 8.875%
I put $1,000 down. I “believe” I payed just the first month and DMV upfront, maybe the $75 doc fee, too.
Overall, was this lease a poor, fair, good, or excellent deal?
Thanks for the info about the closed-end lease, good to know.
Without knowing what the market conditions were for that particular vehicle when you got it, this is a very difficult question to answer.
Poor, from the perspective that your payments were $11k+ for a car selling for below 22.
How did you benefit from paying such a high percentage of its price for such a short percentage of its useful life (before it becomes essentially worth $0)?
That’s like paying $500 for a $1,000 TV or a $1,000 handbag… to use it for six months.
And the trade makes it even worse. If you didn’t know what you were doing they probably ripped you off on that too.
Can someone calculate the MF for me?
Have you tried putting your deal to LH Calculator? Put all your number there and adjust the MF until you find your monthly payment. Voila.
If you still can’t do that, post the link for your LH calculator so other can help you easier.
Mf=(rent charge/lease term in months)/(adjusted cap cost + residual value)
0.00164 x 2400 = 3.94% MF – with 792 credit score.
One line item I’m confused about is section 4, line g: “Sales Tax Paid in Advance”
Looks like tax on the rebates/upfronts
Can’t tell you whether your deal was good or bad. What I can tell you is how each line item in your lease agreement was calculated. For example, let’s look at the sales tax…
Unfortunately, NY computes tax on tax…
Section 4, Line (g):
(1087.40 + 117.33) x (.08875/(1-.08875)) = 117.33
The dealer’s desking software incorrectly computed this tax per NY Pub 839. It is paid upfront and not capitalized. The tax should be:
.08875 x (1087.40 + 75.00 + 12.50) = 104.27
Perhaps the end-user incorrectly input the wrong data. I doubt that there is an issue with the software.
Section 8, Line (b):
First, you must calculate the base payment which includes only taxable capped charges. The base payment is 244.77. Next, compute the total base payments…
36 x 244.77 = 8811.72
Finally, compute the Section 8, Line (b) sales tax…
8811.72 x (.08875/(1-.08875)) = 858.21
This is NOT sales tax paid upfront as it is being capitalized.
Questions? Let me know.
So many people in NY seem to misunderstand what this implies. “I pay my sales tax monthly” or “I didn’t pay anything upfront.”
The bank paid it upfront on your behalf. You borrowed it and are paying it back monthly with tax and interest.
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