Signed: 2024 Lucid Air Pure. $2,256.60 DAS. Zero down, 36 months/15K, $690/month (incl. CA taxes all in)

mxp0 · September 20, 2024, 6:24am

This is the first time I am leasing a vehicle. So pls excuse any errors below.

Promo: Lucid September $549/mo lease deal on lowest base model (Ends Sept 30th 2024)
$7500 Pure credit ; $7500 Lucid EV credit ; $5000 onsite model = $20K in manufacturer credits
Plus, used a random owner Referral code for $750 referral credit
Total incentives = $20,750

2024 Lucid Air Pure base “onsite” model, White ($59,900), Surreal Sound Pro option ($2900) = $72,800 MSRP. A $500 deposit was paid to secure a VIN number. (Original deposit)

Zero down; 36 months/15K miles computes to a $690/month incl. CA taxes all in.

I have no idea what the Money Factor is. Can someone pls help?
Also, there are 2 identical $7500 value credits which I cannot tell which one is used where in the math calculations. I am simply hopeful the math all adds up taking into account credits totaling $20,750 fully amortized in this lease deal. Pls help to verify the math.

HELP: Also don’t know how to input all the numbers in the Lease Calc Can someone please describe the steps to input into the respective fields?

The Lease Math looks like:
72800 MSRP + 1500 Destination Fee = 74,300
(Q: Why did they add the dest fee to the MSRP??)

7500 Pure credit (Cap Cost Reduction) + 5000 onsite credit + 750 referal = 13,250
(74,300 subtract 13,250) = $61,050 which is the “Agreed upon value of vehicle”
NOTE: The Gross Cap cost is $62,120 ($61,050 + 995 acq fee + 75 doc fee)

Now, applying:
7500 EV credit ; 61,050 - 7500 = 53,550
+995 acquisition fee and +75 doc fee = $54,620 which is the “Adjusted Cap Cost” - the amount used to calc the base monthly payment.

Residual Value = $32,469.10
Depreciation & any amortized amounts = $22,150.90
Rent charge = $407.42
Total of base monthly payments=22150.90 + 407.42 = $22,558.32
(Divided by 36 months) = $626.62
(Add Sales Tax) = $64.23
Monthly payment = $690.85

Purchase option end of lease = $32,469.10 and purchase option fee of $450 plus official fees and taxes.

The math for the “Amount due at signing”:

Cap cost reduction = $7500
1st month pmt,rego,cap cost reduction tax, filing fee, lic fee, tire fee = $2,256.60
Rebates and non-cash credits = $7500

I am total confused with this section, but he said $2,256.60 which is DAS (-) $500 original deposit = $1,756.60. Just make a cashiers check for this amt $1756.60, due at Delivery.

Thanks for any insights and any explanations, and help with data input into the Lease calculator.
I have no idea what the Money Factor is. Can someone pls help?

UHTLAF · September 23, 2024, 2:26am

See the following which has a great explanation:

calihackr · September 23, 2024, 6:04pm

Upload a copy of your contract and we can help.

mxp0 · September 24, 2024, 5:41am

hi @calihackr , here are my finance papers, this is my first vehicle lease. I tried to connect the dots but it was just too confusing. I have also the original screenshot of the Lucid website calculator.

hopefully you can help me understand why the $20,750 worth of credits/rebates are distributed around in the various steps of the finance calculations. and I’d also like to attempt and input the correct numbers into the Leasehackr calculator.

thank you again for all your help.
First Page

Second Page

Third Page

Lucid website calculator, original screenshot. In the downpayment field, we used the value of $5,750 to simulate the $5k onsite credit and the $750 referral credit to make the calculator output a monthly payment estimate.

calihackr · September 24, 2024, 11:44am

Here’s my attempt. The rebates are distributed as such because the $7500 plug in credit is taxable in California.

anique · September 24, 2024, 7:12pm

My attempt at calculator which is similar, I just divided the rebates accordingly with 0% dealer discount:

mxp0 · September 26, 2024, 5:34am

Hi @calihackr , many thanks for your help.

Some questions if you don’t mind…

So, the residual value is 43.7% ; which I thought was a bit lower than most Lucids lease deals that I have seen. I would love to get your thoughts, especially if the buyout option price is reasonable after 36 months?
The money factor is 0.0001265 (or APR 0.3%) Does this even sound right? It can’t be a almost zero percent finance rate? Can you pls help to explain this number a bit more? I am happy if it is, but it sounds too good to be true.
The selling price in the formula ($61,050) does not take into account the other $7,500 credit. Why did the finance accounting do this?
But, it does show up in the calculations later, in the paperwork to get down to $54,620. aka the Reduced Capitalized Cost.

Thanks again for your help!

mxp0 · September 26, 2024, 6:10am

hello @anique , thanks for your example of the “other method” of data input in the lease calculator.
couple of questions if you don’t mind…

You split the $20,750 in rebates/credits into one portion which is $7500 “taxed incentives” and the rest which had the other $7500 in “untaxed incentives”. So, the “taxed incentives” $7500 was the one that was used as part of “Capitalized cost reduction” in section 7 of the paperwork, correct?
Would it be fair to state that, the simple % discount off MSRP should be calculated as:
MSRP = $72,800 and total discounts = $20,750
Price after discount = $52,050 and so, 20750 divided by 72800 x 100 = 28.5% discount. Would this be an accurate representation?

I see the lease calc can work with this way you’ve used…

calihackr · September 26, 2024, 1:55pm

That’s the residual for 36/15k, and that’s the MF (is actually 0.00013) for September. Programs can and normally do change each month. Normally captives tweak these variables (plus incentives) to achieve an intended outcome. For example, next month the RV may improve but MF worsen, etc.

The $7500 plug in ev credit is taxable in california, and the tax on that is included in your DAS under “capitalized cost reduction tax.”

Hope that all makes sense.

anique · September 26, 2024, 4:29pm

Yes and Yes. But usually on this website when people are referring to % discount off MSRP, they are more interested in finding out the % dealer discount off MSRP.

mxp0 · September 27, 2024, 6:20am

Hello @calihackr,
Thanks for your reply.
I am sorry for more questions… But learning much from my first lease.

Q1:
So, the Sept Promos, if not leasing, was 1.99% for up to 72 months for a Loan.
Just wondering why these car leasing deals when marketed, don’t usually show the leasing “finance rate” aka. MF until we get all the paperwork later? (Basically, is there a way to know the lease finance rate from the calculators? without the finance paperwork)

Q2:
Since my MF was computed only at 0.3% finance rate, can you pls help me with applying simplified “reverse math” to show IF, I had paid for the car with cash outright (And, assuming I was eligible for the full credits $20,750) that the Outright Purchase price is close to the Lease (with little or zero finance rate)?

Like this below, for comparing total cost?

Outright buy scenario (assume we full credits) = 72,800 plus dest fee $1500 plus acq fee $995 plus $75 doc fee minus all credits ($20,750) plus sales tax (10.25%) = approx $60,218.55
[In reality, cash buy or Loan routes had one of the $7500 credit revoked, because it’s only applicable if you lease]

Lease option (36 monthly payments of $691) = DAS $2,256 + $797 govt fees + (36x$691 is $24,876) + $32,469.10 purchase option RV at end of lease term = $60,398.10

(Please tell me if I am wrong with the simple estimate math)
From the above approx calculations, its shows that the “lease finance rate” was indeed, approximately zero (~0.3% MF) , kinda like getting a zero interest loan.

Now, assuming in 3 years, and IF the car at the future time is worth more than $32K and assuming I do want to keep the car; should I buy it out (and add the $450 buy out fee)?

IF the market value is way less than $32K, I should just return the car. Correct?

Is the simplified math to compare buy vs lease reasonably accurate, since both set of numbers ~$60K are reasonably close to each other?

Thanks in advance for your insights…

anique · September 27, 2024, 7:07pm

LH ratefinder has it. They don’t share it because most people and many salesman don’t understand MF. But if you ask your salesman to contact their finance department to release the MF to you, they can.

This MF is for leasing. Financing the car would have a different APR.

These rebates are for lease only. You would have to see what rebates apply for financing this car.

Just look at the calculator I shared earlier. Total cost to buy at the end of the lease would be: TOTAL COST + RV = 26,886 + 32,469 = 59355

The calculator also has a lease vs finance section. Just fill out the finance details and then compare your costs.

You have three options in total:

Finance the car. You would have to figure out what APR and what incentives/rebates you are getting for financing the car.

If you want to take advantage of the rebates/incentives from the lease (assuming financing do not have good rebates) then you can lease and buyout the car using:
2) Lease the car and then do an immediate buy out in a month or two once paper work is done.
3) Lease the car and then buy it out at the end of the lease.

I would personally do the Math for all three scenarios. Given that the MF is low, #3 might be a good alternative. If in three years, you no longer want the car, you can just return it.

I would also consider not getting 15k miles if not needed. E.g., if you drive 13k miles an year, it might be better to lease for 12k miles an year and then pay the additional 1k overage at the end of the year. I would do the math here again to see at what mileage the breakeven is and then plan accordingly.