EDIT: We are picking up the car this Thursday. Following is just a stupid question before anyone gets triggered.
I have tried to understand the lease contract given to me in the leasehacker calculator terms.
In the lease contract:
We have separate entries of
CCR: 2316
Doc fee: $490
Agreed value: $54,710
Acquisition fee: $925
In the lease calculator, agreed value price is $53,910. Dealer said contract $54,710 includes $799 dealer fee of leasehacker calculator. So now, that CCR $2316 includes acquisition fee + dealer fee + 500 dealer contributed rebate on corporate.
There is no calculation consistent with that doc fee compared to leasehackr calculator. Government and title fees match up.
I still donāt understand $490 doc fee on contract and how the monthly and upfront fees are still the same between lease contract and leasehacker calculator.
They added the other $500 of loyalty/corporate back to the selling price because itās dealership contribution, and the contract must show $1,000 in the rebates or the dealership will get charged the other $500. Other than that, it appears they padded the doc fee and added it back into the selling price.
The ādealer feeā section in your calc is being marked up from $490 to $799 to account for internal costs of doing a deal. While I didnāt do this deal, that can happen sometimes, especially on a very high discount deal where there is a hard loss, like this would be. The dealer needs to cover detail, gas, etc, however, if the state is regulated, they canāt literally put $799 on the contract.
Youāre getting 13% off and buy-rate on an X3, just sign it. It sounds like youāre getting exactly what you agreed to, how they get there, especially on a deal like this, shouldnāt really matter.
Keep in mind, you agreed to $799 total of dealer fees in that calculator. Nowhere does it say exactly how that gets distributed.
Donāt lose the forest for the trees on an extremely good deal.
I understand, like u said whatever gets there, this is what dealer is telling me:
I can break this down fully tomorrow when we are back in the office but we have to pay a messenger fee to process out of state DMV docs. On the hacker links Quentin shows that as part of the doc fee. Thatās how everything matches up. PA is a $490 doc fee and we have a $300 messenger fee that we get charged to process out of state - you will not need to go to the DMV for this.
Yup. That makes sense. There is no place on the LH calc to break down all the little fees in a deal. Thatās why itās cumulative ādealer feesā. You should sign it and move on.
I am gonna sign the lease tomorrow, only thing is everything matches up with lease calculator except doc fee so am curious how it is not magically affecting the monthly, can someone please dumbify this
Letās take a deep dive. The doc fee = 490 and is not being marked up. Youāre chasing after the dealer and allowing them to control. Bad idea! The dealer is capitalizing the 34.30 sales tax levied on the 490 doc fee. Thatās idiotic as youāre paying tax on tax not to mention interest on the tax and tax on the interestā¦ whew! Youāre also paying a pretty hefty cap reduction = 2316.90 which is unnecessary. Conservice your cash. If you total the car, you risk losing all or some portion of the 2316. A car is a depreciating asset and is an expense, not an investment. Create your own target deal and one-page lease proposalā¦ Hereās a good startā¦
It doesnāt actually answer his question, which I did answer. It does maybe make suggestions on the overall structure, but it doesnāt answer his question.
The dealer has other costs to cover clearly on a bottomed out deal and the leasehackr calc doesnāt have a way to display a title service/messenger fee, so itās baked into the doc fee on the calc but cannot be displayed on the contract as such.
The horror! A few dollars of tax and interest on $34.30!
@delta737h I have a lot of respect for your mathematic ability and the help you try to give, but you miss the human element here. Heās getting a crazy good deal. Itās not worth it for the dealer to argue with him about $2.38 in taxes.
Also, in your suggested structure, are you not also capping everything which would accomplish the same thing that you said was idiotic?
EDIT: Nevermind on the last point, it doesnāt if you use the rebate to cover CCR but again on a human level good luck specifically requesting that of an F&I whose making nothing on this deal so that you can save $10 in taxes and interest.
This is the sell price. You should research sell prices in your local market to establish sell price and include it in your lease proposal. Then, let the negotiations begin., Nothing should be added or deduction from the sell priceā¦ it is virgin territory. EVERYTHIN MUST BE ITEMIZED.
Youāre allowing the dealer to control. Again, nothing should be added to the sell price.
The 490 doc fee is charged by the dealer for preparation of documents and other services. The acq fee is charged by the fund provider for booking the lease, billing, etc.
BTW, forget the calculator for now. It wonāt teach you squat. Learn the terminology and how to do the math so that you will understand leasing and how the different fees interact.
Iām not sure what he is even asking. He seems confused and would benefit by reading my post as well as the posted document. I was trying to give hime the big picture in very organized and consise manner. It think my format is much easier to folloow than the lesse contractā¦ at least that is what Iāve been told. Iām a stickler for itemizing everything. The doc fee was not addedc to the sell price. It is the acq fee that gets added to the sell price to give the gross cap. Thatās how it should be structure. The doc fee is paid st lease inception.
I have no problem with hat. That should be part of the doc fee.
My point is that it should not have been capped in the first place. I do agree with you to the extent that I wouldnāt change it now.
Nope. The only thing Iām capping is the acq fee. Look at my structure. All else is paid up front so it is not subject to an interest charge and some fees not subject to tax (e.g., TLR).
huh? What doesnāt? Iām using the rebate to cover a portion of the upfront fees. I have used rebates as a CCR and to cover upfront fees and never had a problem. Not sure what youāre getting at.
It is ādisplayedā on the contract as agreed upon value via an add on to his 13% discount. So, his 13% discount price of 53910 plus the 799 to get to the 54709 in 10A. I think you guys missed thatā¦
This appears to be a broker deal, not one OP is negotiating on his/her own. They are paying a broker to not have to deal with controlling the deal etc.
