lease question
Thread Starter
Junior Member
Joined: Mar 2012
Posts: 69
Likes: 0
2012 E63 Wagon, 2007 E63 Wagon
lease question
I am doing a one-pay lease. basically the math is
After-tax capitalized cost
Less: residual value
Add: capitalized cost * (money factor * 2400 / 100) ^ 3
Add: other fees
right?
what are:
1. "annual fees"
2. "initial fees"
3. why does the "Total Monthly Payment" not match the one-pay amount divided by the lease term in months? what is it supposed to match?
thank you
After-tax capitalized cost
Less: residual value
Add: capitalized cost * (money factor * 2400 / 100) ^ 3
Add: other fees
right?
what are:
1. "annual fees"
2. "initial fees"
3. why does the "Total Monthly Payment" not match the one-pay amount divided by the lease term in months? what is it supposed to match?
thank you
Administrator
Joined: Nov 2001
Posts: 12,263
Likes: 901
From: THE Orange County, California
2024 C8 Z06- 2025 BMW CS- 2022 Porsche 992 GTS
Im a little lost on your flow chart... here is how I would calculate a lease:
Net Cap minus residual divided by term gets your monthly depreciation payment
Net Cap plus residual times your money factor gets your interest monthly equivalent payment.
Add these two and you get your base monthly payment. Take this times your state sales tax and you get your monthly payment. Now this is for non upfront (sales tax not added into cap states). You can figure out your cap if you live in an upfront state.
Your One Pay can be derived from this because a one pay's only benefit is an adjusted money factor (reduced rate) so do the same math above but use the new lower 1 pay money factor. Im not sure what benz is currently offering but it used to be .0008
Annual fees could be license renewal.
Initial fees could be MBFS bank fees, initial license fees, possible security deposit, first payment, etc
Net Cap minus residual divided by term gets your monthly depreciation payment
Net Cap plus residual times your money factor gets your interest monthly equivalent payment.
Add these two and you get your base monthly payment. Take this times your state sales tax and you get your monthly payment. Now this is for non upfront (sales tax not added into cap states). You can figure out your cap if you live in an upfront state.
Your One Pay can be derived from this because a one pay's only benefit is an adjusted money factor (reduced rate) so do the same math above but use the new lower 1 pay money factor. Im not sure what benz is currently offering but it used to be .0008
Annual fees could be license renewal.
Initial fees could be MBFS bank fees, initial license fees, possible security deposit, first payment, etc
