Got into my first vehicle lease and would like some feedback on the contract I signed and advise on what to do (and not to do) moving forward as I intend on leasing my vehicles moving forward. I would like to know how the taxes were calculated (as I thought it was 6.6% of the total loan payments in GA). I also calculated my money factor to be 0.00203399 which is ~4.9% APR, is this correct?
I tried submitting my contract via the https://share.leasehackr.com/ link but it’s giving me an error so hopefully am able to upload the png file directly here.
Contract Details:
Gross Cap. Cost: $35,479.19 (the agreed upon value of the vehicle was $32,175.00)
Cap. Cost Reduction: $8,953.43
Adjusted cap. cost: $26,525.76
Residual value: $19,868.25
Depreciation & any amortized amounts: $6,657.51
Rent charge: $3,407.01
Total of base scheduled payments: $10,064.52
Lease payments: 36
Base scheduled payment: $279.57
Sales/use tax: N/A
Total scheduled payment: $279.57
Itemization of Gross Cap Cost:
Agreed upon value of vehicle: $32175.00
Taxes: $953.19 – not sure how this was calculated??
Title, license, and registration fees: $44.00
Lease acquisition fee: $650.00
Documentation fee: $699.00
Georgia Lemon Law fee: $3.00
Excess Wear and Use Protection: $495.00 (Optional: waives up to $5000 of wear/tear at lease end)
GAP: $460.00 (Optional: but I think I should have declined considering I put so much money down)
Amount due at Lease Signing/Delivery: $8953.43 + $279.57 (first month payment) = $9,233.00.
The deal required $3800 due a signing that I don’t believe could be avoided.
I expect to get chewed out for that decision (as I should), as I had read it’s not a good avoid putting anything down on a lease prior) but was concerned about having a high monthly payment. In hindsight, I won’t do that again.
Ouch OP. It feels worse than usual because the CX5 isn’t a bad lease at the moment.
Hope you really enjoy driving it! (very, very gently, because if you get into any kind if situation where the car is totaled, you’re out $9,233) Lots to learn for the next lease.
OP one way to think about this - you’re paying 10K in scheduled payments plus the 9K DAS = $19K to drive a $33k vehicle for 36 months. Effectively, you’re assuming 58% of the depreciation of vehicle when the lease is structured to only cost you 38% of the car’s worth (19.9k RV over 32k sales price = 62% residual) So you are overpaying at the front end, and if you want to buy the car when the lease is up, you’ll overpay again! Here’s an approximation of your deal that i generated based on the numbers you shared:
I didn’t know about this site before I signed the deal. Also want to use this as a learning moment to grow from as I do intend on leasing again. So please let me know what I should do better in the future.
So what about the deal is terrible (please don’t think am trying to be smart, I would just like some explanation so I can take notes and know what to look out for next time).
As others have said, it is a bad deal with all that DAS money. Hopefully you will do much better next time after learning from here. On the positive side, just think of yourself as putting someone’s child thru 4 years of Ivy League and medical school.
