[tvmendoza]

All right I did my own re-search but I still don't know understand a bit of the math.

Assuming a 43k Final price:

MF: .0013 Residual: 60%

Then I do: 43000 x .40 = 17200

17200 / 39 payments ~ 441

MF is .0013 x 2400 = 3.12

From my understanding the 3.12 becomes the APR that I will be paying?

Then I can just plug into a loan calculator as:

Loan amount 17200.
Month: 39
interest rate: 3.12
Calculator gives me: ~464

Therefore, the difference is 23 dollars monthly(in this scenario) from no taxes to taxes.

Does the MSDs serve to lower those 23 dollars? To this I need to add Taxes do you usually recommend just paying the taxes up front or monthly. I a min WA so I have ~ 9% tax.

Did I misunderstood anything?

Thanks in advance
Tona

[BoomWasabi]

You need four numbers (I picked nice round numbers for illustration):
- net price - $45000
- residual price - $30000 (or MSRP and percentage to calculate it - MSRP $50000 * 60% = $30000)
- money factor - 0.0013
- length - 39 months


You lease payment is sum of
- depreciation, i.e. difference between net price and residual, per month
($45000 - $30000) / 39 = $384.62
- Lease charge, i.e. interest on financed amount. Financed amount is net price. Money factor is a simplified (but confusing) representation of the interest rate used for lease calculations.
($45000 + $30000) * 0.0013 = $97.50

Total Payment $496.58

If you pay tax upfront, it will be added to net price.
If you decide to add tax to the payment, it will be $496.58 * 0.09 = $43.39

MSD will lower you money factor, and as a result you monthly payment.

7 MSDs will result in MF 0.00081, and lease charge $60.75.
Total including tax will be $485.45, you save $40/month.

[tvmendoza]

All right so with my calculations it comes up as:

Assuming a MSRP of 45,000
Net paid 43,000
residual price: 45000*.60 = 27000
Depreciation = 43000 - 27000 = 16000
Payment(without tax and interest) = 16000 / 39 = 410
Lease charge = 43000+27000 = 70,000 * .0013 = 91
Total payment = 410 + 91 = 501
Payment with tax 501 * 1.09 = 546

Lease charge with MDS= 54.7 savings of $34.3

34.3 * 39 = 1337 savings for 3500 in MDS.

[BoomWasabi]

Originally Posted by tvmendoza

Total payment = 410 + 91 = 501
Payment with tax 501 * 1.09 = 546

Lease charge with MDS= 54.7 savings of $34.3

34.3 * 39 = 1337 savings for 3500 in MDS.

This looks correct to me.

[tvmendoza]

Thanks for your time man I appreciate it!