So going through lease 101 contract breakdown, and I have a lot of questions. Capitalized cost reduction. It includes mfr incentives, down payment. For the sample deal, Section 9.A.1, 3k is coming from their trade in, what is the additional $90.35 from? The total, reflected in section 9.B.3, …

Residual is off of msrp (except for tesla who does some weird stuff)

Tesla bases off selling price, making any discount less significant

To see if I understood anything I took a random contract on the board, and am trying to break it down: [image] edmunds: MF: .00091 Elite RV: 61% 36/12k Dealer math: MSRP: $45,100 Pre-incentive discount (before dealer fees):10% or 4,629.51 (does not include the mfg rebate) incentives from mf…

[image] Stonksonlygoup: Thanks! Next question, residual is based on sticker or adjusted cap cost? You really need to read the articles on this site such as Leasing 101 and How to Calculate Payments

[image] Stonksonlygoup: Negative Equity: $2,000 Check with other buyers, dealers, Carvana, vroom etc in the value of your trade. Make sure you’re getting something very similar to the highest offer (without a purchase just a straight sale), or it’ll just be more worth it to sell to another bu…

[image] Stonksonlygoup: In this contract I have the base MF, Adjust cap, residual. While I can calculate the rent how would I determine whether the mF is marked up besides asking the dealer? Is their way to calculate this via hand? A lease contract will have the rent charge amount listed. Fro…

[image] HersheySweet: You wouldn’t close on a house without learning your interest rate, if it’s fixed or non fixed, closing costs and what not; why do a comparable action when leasing a car. Preach it [BetterReflectingEyra-max-1mb]

I appreciate the advice. BTW all contracts listed in my posts thus far are not mine, the BMW is from Leasing 101, while the Honda is another members.

Thanks for clearing up the confusion on that one. I guess I was wondering that while you can read and understand every single detail on the contract sheet, how does one look at an offer sheet and get the complete picture?

You keep asking until the answers make sense… deal sheets aren’t meant to make sense to the buyer - they’re to sell the car :slight_smile:

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HersheySweet December 7, 2020, 3:28am 28

Might find this useful.