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BMW 3-Series (E90 E92) Forum > BMW E90/E92/E93 3-series General Forums > New & Preowned BMW Ordering / Pricing / Tracking Information Forum (including European Delivery) > If someone could figure this out for me ....(lease question)



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      02-14-2006, 12:20 PM   #1
NJjustin
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Red face If someone could figure this out for me ....(lease question)

I would be extrememly grateful and in debt to that person!


My current lease is up and need to order a car ASAP. I have been trying to figure out this whole lease thing (last car I just went in there with a monthly payment that i wanted to pay) ...I just cant figure out this whole residual -money factor- invoice price thing.

If someone can tell me the price of the car i could get with this monthly payment ( ie. 35,000...or 36,000, etc. etc)

I can afford 420 dollars/month 12kmiles 24month lease . 2000 total out of pocket at signing. Can someone tell me the price of vehicle I can get for that deal. PLEASE!!! im lost here.
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      02-14-2006, 12:23 PM   #2
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go to their website and use their caculator. after you pick out the car you want, you will go to a page with a caculator to either lease or finance. punch in your numbers and see if you could afford it.
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      02-14-2006, 12:24 PM   #3
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Quote:
Originally Posted by longtran
go to their website and use their caculator. after you pick out the car you want, you will go to a page with a caculator to either lease or finance. punch in your numbers and see if you could afford it.

I heard never use the bmw lease calculator.
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      02-14-2006, 12:32 PM   #4
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NJjustin, see if this lease calculator that a member created helps you.

E90 Lease Calculator Here
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      02-14-2006, 01:19 PM   #5
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Not trying to be smart but if you don't understand the mathemathics/process of leasing you are lamb entering wolf territory. Even if you figure out how much car you can afford, the dealer will surely sweet talk you into paying much more money than you should.

The calculation is really quite simple.....

First go to the sticky page on bimmerfest.com "Ask A Dealer forum" and figure out the residual and MF for the car you want. Note that the residual increases if you choose less miles/year.

Residual value: What BMWFS calculate the vehicle is worth at lease end. This value is ALWAYS calculated as MSRP*residual_rate.
For example a 3 yr/12K residual might be 64%. If your MSRP is 50K then your residual value is 50*.64=$32K
NOTE: Destination charge $695 is NEVER included in MSRP for purpose of this calculation, neither is MACO/TRAINING. The MSRP for lease calculation purposes is the sum of base MSRP + all options MSRP.

Money Factor (MF): Equates to interest rate. The actual interest rate is 2400*MF, so for a money factor of .00195 the actual interest rate is 2400*.00195 =4.68% (some dealers try to imply that a MF of .00195 is an interest rate of 1.95%, so make sure you understand the difference).


Next is Gross Capatilized Cost which is....
Capatilized Cost + whatever else you want to roll into lease...
For example..
Gross Capatilized cost=Agreed Sales Price + $695(Destination)+ $625 (Lease Acquisiton fee) + $480 (MACO + Training) and so on.

One piece of advice, pay security and DMV+Doc fees up front, i.e do not roll them into the lease, this will make the lease calculation much cleaner.

The Adjusted Capitalized cost=Gross Cap Cost - (any trade in + down payment)

I don't recommend reducing the Adjusted Cap Cost by either downpayment or trade in. This is money you may not be able to recover if your car is totalled. So in general
Adjusted Cap Cost=Gross Cap Cost.


Next the monthly calculation...
Here I assume residual 64% and MF .00195 (36 month lease)
MSRP $50K, Adj Cap Cost $45K (picked these out of my head)

There are two terms here, Depreciation and Rent Charge.
Depreciation is the amount you pay to cover the loss of value in the car over the lease period.
Rent Charge is the cost of BMWFS purchasing the vehicle and leasing to you.

Depreciation=Adj Cap Cost - Residual value..
45000-(50000*.64)=45K-32K=13K.

Rent Charge=(Adj Cap Cost + Residual Value)*MF*LeaseTerm
(45K+50K)*.00195*36=$6,669

Total you pay over the lease period = Depreciation +Rent Cost
13K+6,669=$19,669.

Per month 19669/36=546.36

Including Sales tax...546.36*1.xxx where xxx is the sales tax rate in your area. For 7.75% sales tax the number is 1.0775

545.36*1.0775=~$588/month.

Note: Some states require you to pay sales tax on full value of car EVEN for lease, I have not considered that case in above calculations.

If you search these forums of online you will find plenty of good spreadsheets to simplify all this even more. You should workout your numbers and bring a printout or laptop into the dealer when you go for lease signing.

Good Luck
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      02-15-2006, 10:57 AM   #6
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Thank you Paddy..i just wish you could have plugged 37k in there instead of 50k.
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      02-15-2006, 11:54 AM   #7
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lease question

I'm not exactly sure what my residual value was or the money factor... but can some please tell me if I got a good deal on this lease!
2006 325i, graphitte, sports and xenon - $34545 msrp
$4000 down payment
$445 monthly payments (with 6% tax already included) for 36 months and 10k/year.

Is that what everyone is paying too?
Thanks a lot.
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      02-15-2006, 12:11 PM   #8
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Your down payment is too high. Need more info... what you paid for the car,drive off break down, go back to dealer and get all the info on the deal.
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      02-15-2006, 12:30 PM   #9
Beto Pereira
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do you think its too late to renegociate? the only thing i've done is... put down the $1000 do hold the car.
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      02-15-2006, 02:03 PM   #10
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I don't know the laws in florida but in cali you could get your money back.
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      02-15-2006, 04:00 PM   #11
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Like Paddy says. If you don't know what a lease is or how it works, please don't do it. Or if you do, take you favorite personal lubricant to the dealership. You'll need it.
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      02-15-2006, 04:07 PM   #12
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yeah... you're right. and you know what the worst thing is? i do know about lease, money factor, residual value. it was a stupid moment. i'm kicking myself here.
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      02-16-2006, 01:02 PM   #13
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Quote:
Originally Posted by SteveMD
Like Paddy says. If you don't know what a lease is or how it works, please don't do it. Or if you do, take you favorite personal lubricant to the dealership. You'll need it.


lol.
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      02-16-2006, 08:30 PM   #14
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Hey Justin, This stuff is real easy...go to bmwusa.com or edmunds.com and build your car it will give you the MSRP (Edmunds will also give you the invoice price). Go to the other site and get all the info you need (residual value, money factor..)input all that information in my calculator (Jason provided a link for you already). In the negociated price enter like $1000 or $1500 over invoice. Bank acq. fee is between $600 and I've seen up to $850. Print a copy of the calculation and take it to the dealer. Don't let them change your number because that is 100% accurate.
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      02-17-2006, 02:48 PM   #15
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Quote:
Originally Posted by DavE90
Hey Justin, This stuff is real easy...go to bmwusa.com or edmunds.com and build your car it will give you the MSRP (Edmunds will also give you the invoice price). Go to the other site and get all the info you need (residual value, money factor..)input all that information in my calculator (Jason provided a link for you already). In the negociated price enter like $1000 or $1500 over invoice. Bank acq. fee is between $600 and I've seen up to $850. Print a copy of the calculation and take it to the dealer. Don't let them change your number because that is 100% accurate.


thanks...im going to try that calculator out right now.
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      02-17-2006, 03:28 PM   #16
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Justin...I can do it for you, but I need the term(how many months), your down payment and your sales tax %
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      02-17-2006, 04:00 PM   #17
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Quote:
Originally Posted by DavE90
Justin...I can do it for you, but I need the term(how many months), your down payment and your sales tax %



24months/ 1500 total at signing, im not sure how much of that is fees./ I believe nj sales tax = 6%
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      02-18-2006, 02:54 PM   #18
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Quote:
Originally Posted by NJjustin
24months/ 1500 total at signing, im not sure how much of that is fees./ I believe nj sales tax = 6%
Justin, this is the calculation with $500 down payment (cost reduction). Enter these numbers in the calculator and play with them. I didn't include the inception fees (out of pocket besides the $500 I entered in the formula). Common inception fees are: first month payment, tag, dealer fees..etc

Term 24
Sales Tax % 6
Residual Value % 76 of MSRP
Money Factor 0.0025
1 MSRP $36,105.00
2 Base Cap Cost $34,500.00 (Negociated price)
3 Other Costs $695.00 Destination
4 $650.00 Bank Acquisition Fee
5 Cap Cost Reduction $500.00 (Down Payment)
6 Adjusted Cap Cost $35,345.00 (2+3+4-5)
7 Residual Value $27,439.80
8 Depreciation $329.38 (6-7)/term
9 Finance Charge $156.96 (6+7)money factor
10 monthly $486.35 8+9
11 tax $29.18 10 * tax%
12 Monthly Payment $515.53 10+11
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      02-18-2006, 03:28 PM   #19
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hmmmm, so if the salesman told me 450/mo for 24 mo/12k miles with 1500 out of pocket total thats a pretty good deal then right?
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