Hi,
Can someone help me with my questions. For my leases/finance in Canada the numbers were never this complicated. As an example, no where on my lease agreement can I find the agreed upon money factor or interest rate other than the 'rent charge' noted here. Frankly, I wouldn't have cared much but now that I may end up buying it, I'd like to understand where have I over-payed.
Please see screenshot below.
MSRP was $106,295. Agreed upon pricing was $84,925 ($925 being acquisition fee). I'm in state of California where the tax is 9%.
1. Rent charge is $5,384.75. How do I calculate the interest rate on it? I did a high level calc and it came to around 3.46%. I'm not sure if I did that correct?
2. Does $66,965.85 include sales tax? If i print out my payout document today, it shows sales tax as $0.00 which I'm not sure why.
3. The document shows $9,500 on delivery out of which $7,500 was a rebate (I did pay $2,000 down to cover first month payment, registration etc.). If I was to buyout the car, do I end up losing the $7,500?
4. Continuing with (3) above. If I was to look at my lease payments of $735.85 x 24 + Residual of 66,965.85 gets me to $84,626 (let's round it to $84,925). So where did the $7,500 rebate go? Is that being offset by the "rent charge" of $5,384.75?
5. Capitalized Cost is the agreed upon price. But I feel like if I buy it out, how does the capitalized cost reduction of $7,141.74 completely disappear?
Thanks for your help!