For those good at Math and Finance...pls help fill in the blanks
#2
Super Moderator
![](https://staticssl.ibsrv.net/autocomm/Content/MB/mbwambassador2.gif)
Join Date: May 2002
Location: Land of 10,000 lakes
Posts: 10,100
Received 3,303 Likes
on
2,049 Posts
AMG GTC Roadster, E63s Ed.1, M8 Comp. Coupe
Vehicle Lease value: $164,980 ($146000+13% hst tax)
Downpayment: $20,000
Capitalized cost: $144,980 (vehicle lease value - downpayment)
Lease Term: 36months
Annual Percent Rate:
Implicit Finance Charge:
Lease payment per month: $1750
Total Cost of Lease:
Hst on each payment per month: $227.50 (13% of $1750)
please help me correct whichever one i have wrong and fill out the blank on the rest. Hst is 13% for calculation purposes. Does vehicle lease value include cost plus tax as i did it? Is capitalized cost simply as i did it? Implicit finance charge am guessing is just a cashgrab. If so, lets assume its $500. If not, please tell
me what it means and help with calculation where applicable.
Thanks
Downpayment: $20,000
Capitalized cost: $144,980 (vehicle lease value - downpayment)
Lease Term: 36months
Annual Percent Rate:
Implicit Finance Charge:
Lease payment per month: $1750
Total Cost of Lease:
Hst on each payment per month: $227.50 (13% of $1750)
please help me correct whichever one i have wrong and fill out the blank on the rest. Hst is 13% for calculation purposes. Does vehicle lease value include cost plus tax as i did it? Is capitalized cost simply as i did it? Implicit finance charge am guessing is just a cashgrab. If so, lets assume its $500. If not, please tell
me what it means and help with calculation where applicable.
Thanks
But why in the world would you do a down-payment on a lease? Worst thing you can do. Money lost in case of an accident and money tied up for nothing.
Just do multiple Security deposits to lower payments (MSD's).
Good luck!
#3
Member
Never leased a car but.... Your calculation is taxing the car twice. As you don't own/buy the car you are only taxed on the service provided ie the use of their car and the monthly payment. No tax on the whole vehicle.
The 20K downpayment is used by dealers to lower your lease cost and make sure you have more skin in the game should your financial status go seriously sideways. They are protecting their interests not yours. Not sure on taxes on down payment. Agree with others money is likely at risk if car totalled
The 20K downpayment is used by dealers to lower your lease cost and make sure you have more skin in the game should your financial status go seriously sideways. They are protecting their interests not yours. Not sure on taxes on down payment. Agree with others money is likely at risk if car totalled
Vehicle Lease value: $164,980 ($146000+13% hst tax)
Downpayment: $20,000
Capitalized cost: $144,980 (vehicle lease value - downpayment)
Lease Term: 36months
Annual Percent Rate:
Implicit Finance Charge:
Lease payment per month: $1750
Total Cost of Lease:
Hst on each payment per month: $227.50 (13% of $1750)
please help me correct whichever one i have wrong and fill out the blank on the rest. Hst is 13% for calculation purposes. Does vehicle lease value include cost plus tax as i did it? Is capitalized cost simply as i did it? Implicit finance charge am guessing is just a cashgrab. If so, lets assume its $500. If not, please tell
me what it means and help with calculation where applicable.
Thanks
Downpayment: $20,000
Capitalized cost: $144,980 (vehicle lease value - downpayment)
Lease Term: 36months
Annual Percent Rate:
Implicit Finance Charge:
Lease payment per month: $1750
Total Cost of Lease:
Hst on each payment per month: $227.50 (13% of $1750)
please help me correct whichever one i have wrong and fill out the blank on the rest. Hst is 13% for calculation purposes. Does vehicle lease value include cost plus tax as i did it? Is capitalized cost simply as i did it? Implicit finance charge am guessing is just a cashgrab. If so, lets assume its $500. If not, please tell
me what it means and help with calculation where applicable.
Thanks
#4
Au contraire mon friere. Some states require you to pay tax on entire vehicle on a lease. My state of Georgia does. Which creates a massive disincentive to lease. Consequently, I bought my car outright.