How is dealer markup ($3,000) calculated in a lease payment? Does the residual value apply to the markup? Does the residual value apply to the accesories/addendum added to the price?
It all depends on what you are doing with it. 24 or 2400. If you converting a rate given by the dealer into the Money Factor, use 2400. If you are converting the Money Factor into a rate, use 24. Also, he added the term to the formula because you could just change it when you know the residual for the particular term.
@@XxAlexanderProxx question for you, is there any tax savings benefit from paying off your entire lease two to three months into the life of the lease?
Hey Duane. Yes, you're correct in that dealers typically recommend putting down a down payment. The reason they do this is because it's an incentive for them and as a small added bonus, its peace of mind for you. I typically dont recommend putting any money down because if you calculate the savings over the term of your lease, it doesnt make sense. Additionally, if something where to happen to your car, if it got totalled for example, you would lose your down payment!
@@DriveSteady I haven't seen one that doesn't require it, except brands nobody wants. It also includes the taxes fees first-month payment, and in some cases, options you don't care to finance.
@@DriveSteady do some math for me,86k lease for 36 months. 2020 GLC 63. 7K DOWN OR NOTHING DOWN EXCELLENT CREDIT RATING. How much should I be paying? 8.63% tax rate as of today
There is no requirement for a down payment. Sometimes dealers will require you to pay the first months payment, taxes, fee's, etc. However, i've leases cars before where i have literally signed on the dotted line and walked out. All of the fee's and taxes can be rolled into the price of the car.
Assuming the SUV (not the coupe), 12k miles a year, and a 4k discount, my estimate is $1,200 including tax. It may be +/-$30 because i dont know what the dealer and local fees are.
The interest cost of the lease is supposed to be subtracted from the selling price. Your formula is wrong. The correct formula is =(B5-B7)*B3
That's what I thought too. Why would you pay interest on the entire selling price and also on the residual value? Double dip
How is dealer markup ($3,000) calculated in a lease payment? Does the residual value apply to the markup? Does the residual value apply to the accesories/addendum added to the price?
Question. Where does a down payment or rebate/discount factor in? Would it help reduce the Interest cost??
I’m curious of this too! Hopefully he gets back to us
QUESTION: IF DOC FEE + TAX + TAX & REGISTRATION ARE PAID WHEN SIGNING THE LEASE CONTRACT ..LEASE PAYMENT WII COMPRISED OF DEPRECIATION + INTEREST COST ...CORRECT ???
Where do you calculate pwner cash component?
I got the excel all set up and cannot find any of the details I need to get these figures calculated
I found this helpful in calculating lease rate for a factory equipment, thanks!
Thank you so much!🎉
What about the down payment?
You multiply by 24 not 2400 to get interest rate. Also you should add an input for term, which comes into play with depreciation cost
It all depends on what you are doing with it. 24 or 2400. If you converting a rate given by the dealer into the Money Factor, use 2400. If you are converting the Money Factor into a rate, use 24. Also, he added the term to the formula because you could just change it when you know the residual for the particular term.
@@XxAlexanderProxx question for you, is there any tax savings benefit from paying off your entire lease two to three months into the life of the lease?
Nice video. What is the interest for?
really great video ? after a few times I really got it
Thanks! I'll try this out
Let us know of you have any questions 👍
What about down payments? They always want down payments.
Hey Duane. Yes, you're correct in that dealers typically recommend putting down a down payment. The reason they do this is because it's an incentive for them and as a small added bonus, its peace of mind for you. I typically dont recommend putting any money down because if you calculate the savings over the term of your lease, it doesnt make sense. Additionally, if something where to happen to your car, if it got totalled for example, you would lose your down payment!
@@DriveSteady I haven't seen one that doesn't require it, except brands nobody wants. It also includes the taxes fees first-month payment, and in some cases, options you don't care to finance.
@@DriveSteady do some math for me,86k lease for 36 months. 2020 GLC 63. 7K DOWN OR NOTHING DOWN EXCELLENT CREDIT RATING. How much should I be paying? 8.63% tax rate as of today
There is no requirement for a down payment. Sometimes dealers will require you to pay the first months payment, taxes, fee's, etc. However, i've leases cars before where i have literally signed on the dotted line and walked out. All of the fee's and taxes can be rolled into the price of the car.
Assuming the SUV (not the coupe), 12k miles a year, and a 4k discount, my estimate is $1,200 including tax. It may be +/-$30 because i dont know what the dealer and local fees are.
nice job
How about the vehicle rebate ?
what about the fees they charge you at lease start
Why go through all that to figure this .it’s over kill.
this was so confusing you were all over the place.....SMH...u literally left out important parts