math help on leasing deal?

Blueberry415 · 12-28-2005, 03:51 PM

Sorry if this is the wrong place, please let me know if this posting should be elsewhere.... anyhow, I need someone smarter than I to check the leasing deal....

This is my 1st time leasing a vehicle, so please bear with me on the mathematics of this lease deal. I'm going for a 2006 BMW 325xi, partially loaded at 3yrs/15K. The MSRP when configured with Auto, Heated Seats, Xenon, Nav and Premium = 40970. My offer price for the above is 38580 or 1000 over invoice. Would someone smarter than I please check if my math is correct?

BMW 3yr/15K = 61% / .0025
Residual = (40970* 61%)= 24991.70
cap reduction = 4684.32
tax - pay upfront = (430*35month)=15050 * 6%= 903
tax - cap reduc = (4684.32* 6%)= 281.06
add to net cap = (903+281.06)= 1184.06

net cap cost = (38580-4684.32) +(1184.06) = 35079.74
Depreciation = (35079.74 - 24991.70) /36months = 280.22
Finance = (35079.74 + 24991.70) *.0025 = 150.18
monthly = (280.22 + 150.18)= 430.40

I was ask by the dealer if I wanted the Taxes to be included in the calculations. So I said yes, and not realizing what it would do? But this is how it came out in their printout. So my final payment per month is $430 for this car. Any thoughts?

MIKEYMIKE · 12-28-2005, 05:06 PM

How much are taxes? The percent?

How much down?

Blueberry415 · 12-28-2005, 05:43 PM

the taxes in NewJersey is 6% and I'd paid $4684.32 for capital reductions. So I guess that is the same as down payment. For this 325xi configuration, my monthly was over $530+, and I wanted to bring it down to a manageable monthly amount which I could handle.

SteveMD · 12-28-2005, 06:21 PM

I get $394 per month for the car before taxes. $419 with 6% tax.

You will also pay 6% on that down payment since it is considered a payment. My only advice would be to save the down payment. You should put ZERO down on a lease. In 36 months, you have nothing.

Payment with no CCR is $568

Take a look at a comparative 330. The MF is much lower and I'm looking at about $500 before taxes on a 43K car, nothing down.

YV1 · 12-28-2005, 06:38 PM

If you wregke your car or if the car is stoeln you may lose your dow payment or cap reduc. Ask your dealer.

YV1 · 12-28-2005, 06:44 PM

Sorry for the type error. "Wrecked"

Blueberry415 · 12-28-2005, 07:34 PM

thanks all, I do agree it might be a poor business decision to put $$ down. But I need to manage the monthly closer to $400. And getting the monthly down to $430 was what I was looking for. To me, it's an gamble.

As for the math, the dealer put the tax inadvance on to the calculation of the "net cap cost". Is this a normal practice? So now, my monthly is just depreciation & finance. No tax which means it's just $430 a month.

Personally, I would've gone for the 330xi, but it was a bigger car than I need. And the options really raise the lease cost. Thankyou for the answers.

YV1 · 12-28-2005, 08:37 PM

I did the math and it came 418.19 with tax. I have an excel spread sheet that does all the math. You just input the values. I'll try to email it to you.

YV1 · 12-28-2005, 08:41 PM

I can't emal it. Go to
http://www.bimmerfest.com/forums/sho...ase+calculator

Blueberry415 · 12-29-2005, 12:51 PM

I did the math manually using a $2 calculator, and I also come up with $418 per month. I think the discrepancy here is the dealer place all 36 month's worth of taxes and roll them into the "net cap cost" calculations. what's wierd is that i'm not paying taxes on the down payment upfront. this tax portion was also roll into the "net cap cost". So in the end, if I see it their way, it's a difference of $12/month or difference of $432.

Blueberry415 · 12-29-2005, 12:52 PM

btw, nice bike. my other ride is a ducati 749.

E90AW · 12-29-2005, 01:30 PM

where do you get the residual from?
i used to be in the business, not for long but what dealerships do is use a program where they plug in numbers for selling price, monthly payment, money down, etc. then a screen comes up with hom much money they want to make, this was at nissan and the biggest profit i saw was like $7000. about quarter of that goes to salesperson's pocket. when it comes to leasing people really have no idea and they end up overpaying.
but anyhow, the managers try not to teach the salesperson how to do anything because of experience and they are the shot callers. i lost a 4k dollar deal one day jus because the manager didnt want to go from 6K to 4K in profit.how stupid is that!

i also know that carsdirect.com can get you a lease quote, not sure if it's free or not. a lot of dealerships accept carsdirect.com prices. so to get a really real figure i would suggest to do that.

12-28-2005, 03:51 PM	#1
Blueberry415 New Member 1 Rep 12 Posts Drives: 2003 X5 4.4i Join Date: Dec 2005 Location: Montvale, NJ iTrader: (0)	math help on leasing deal? Sorry if this is the wrong place, please let me know if this posting should be elsewhere.... anyhow, I need someone smarter than I to check the leasing deal.... This is my 1st time leasing a vehicle, so please bear with me on the mathematics of this lease deal. I'm going for a 2006 BMW 325xi, partially loaded at 3yrs/15K. The MSRP when configured with Auto, Heated Seats, Xenon, Nav and Premium = 40970. My offer price for the above is 38580 or 1000 over invoice. Would someone smarter than I please check if my math is correct? BMW 3yr/15K = 61% / .0025 Residual = (40970* 61%)= 24991.70 cap reduction = 4684.32 tax - pay upfront = (43035month)=15050 6%= 903 tax - cap reduc = (4684.32* 6%)= 281.06 add to net cap = (903+281.06)= 1184.06 net cap cost = (38580-4684.32) +(1184.06) = 35079.74 Depreciation = (35079.74 - 24991.70) /36months = 280.22 Finance = (35079.74 + 24991.70) *.0025 = 150.18 monthly = (280.22 + 150.18)= 430.40 I was ask by the dealer if I wanted the Taxes to be included in the calculations. So I said yes, and not realizing what it would do? But this is how it came out in their printout. So my final payment per month is $430 for this car. Any thoughts?
	Appreciate 0 Tweet Quote

12-28-2005, 05:06 PM	#2
MIKEYMIKE Lieutenant Colonel 63 Rep 1,516 Posts Drives: 330i 6mt Join Date: Oct 2005 Location: SoCal iTrader: (3)	How much are taxes? The percent? How much down?
	Appreciate 0 Quote

12-28-2005, 05:43 PM	#3
Blueberry415 New Member 1 Rep 12 Posts Drives: 2003 X5 4.4i Join Date: Dec 2005 Location: Montvale, NJ iTrader: (0)	the taxes in NewJersey is 6%. the taxes in NewJersey is 6% and I'd paid $4684.32 for capital reductions. So I guess that is the same as down payment. For this 325xi configuration, my monthly was over $530+, and I wanted to bring it down to a manageable monthly amount which I could handle. Last edited by Blueberry415; 12-28-2005 at 05:44 PM.. Reason: double-checking grammar
	Appreciate 0 Quote

12-28-2005, 06:21 PM	#4
SteveMD Colonel 195 Rep 2,485 Posts Drives: 2016 F10 535i MSport Join Date: Dec 2005 Location: Raventown! iTrader: (3)	I get $394 per month for the car before taxes. $419 with 6% tax. You will also pay 6% on that down payment since it is considered a payment. My only advice would be to save the down payment. You should put ZERO down on a lease. In 36 months, you have nothing. Payment with no CCR is $568 Take a look at a comparative 330. The MF is much lower and I'm looking at about $500 before taxes on a 43K car, nothing down. __________________ 2006 E90 330i (retired) 2009 E90 335i (retired) 2012 E70 X5 50i M Sport (retired) 2016 F10 535i M Sport
	Appreciate 0 Quote

12-28-2005, 06:38 PM	#5
YV1 Private First Class 9 Rep 138 Posts Drives: 325 354 LCSW ZSP ZPP ZCP Join Date: Nov 2005 Location: Raleigh, NC iTrader: (0) Garage List 2006 325 [0.00] 2006 X6 [0.00] 2000 Saab 9-3 SE [0.00] 2001 GS 650 [0.00]	If you wregke your car or if the car is stoeln you may lose your dow payment or cap reduc. Ask your dealer. __________________ 325 silver black ZSP ZPP ZCP PDC CA XENON Saab 9-3 SE 2000 C240 1999 sold e36 328 touring 1998 sold e39 540 1997 sold Toyota Supra Turbo 1994 sold Porsche 911 1989 sold
	Appreciate 0 Quote

12-28-2005, 06:44 PM	#6
YV1 Private First Class 9 Rep 138 Posts Drives: 325 354 LCSW ZSP ZPP ZCP Join Date: Nov 2005 Location: Raleigh, NC iTrader: (0) Garage List 2006 325 [0.00] 2006 X6 [0.00] 2000 Saab 9-3 SE [0.00] 2001 GS 650 [0.00]	Sorry for the type error. "Wrecked" __________________ 325 silver black ZSP ZPP ZCP PDC CA XENON Saab 9-3 SE 2000 C240 1999 sold e36 328 touring 1998 sold e39 540 1997 sold Toyota Supra Turbo 1994 sold Porsche 911 1989 sold
	Appreciate 0 Quote

12-28-2005, 07:34 PM	#7
Blueberry415 New Member 1 Rep 12 Posts Drives: 2003 X5 4.4i Join Date: Dec 2005 Location: Montvale, NJ iTrader: (0)	thanks all, I do agree it might be a poor business decision to put $$ down. But I need to manage the monthly closer to $400. And getting the monthly down to $430 was what I was looking for. To me, it's an gamble. As for the math, the dealer put the tax inadvance on to the calculation of the "net cap cost". Is this a normal practice? So now, my monthly is just depreciation & finance. No tax which means it's just $430 a month. Personally, I would've gone for the 330xi, but it was a bigger car than I need. And the options really raise the lease cost. Thankyou for the answers.
	Appreciate 0 Quote

12-28-2005, 08:37 PM	#8
YV1 Private First Class 9 Rep 138 Posts Drives: 325 354 LCSW ZSP ZPP ZCP Join Date: Nov 2005 Location: Raleigh, NC iTrader: (0) Garage List 2006 325 [0.00] 2006 X6 [0.00] 2000 Saab 9-3 SE [0.00] 2001 GS 650 [0.00]	I did the math and it came 418.19 with tax. I have an excel spread sheet that does all the math. You just input the values. I'll try to email it to you. __________________ 325 silver black ZSP ZPP ZCP PDC CA XENON Saab 9-3 SE 2000 C240 1999 sold e36 328 touring 1998 sold e39 540 1997 sold Toyota Supra Turbo 1994 sold Porsche 911 1989 sold
	Appreciate 0 Quote

12-28-2005, 08:41 PM	#9
YV1 Private First Class 9 Rep 138 Posts Drives: 325 354 LCSW ZSP ZPP ZCP Join Date: Nov 2005 Location: Raleigh, NC iTrader: (0) Garage List 2006 325 [0.00] 2006 X6 [0.00] 2000 Saab 9-3 SE [0.00] 2001 GS 650 [0.00]	I can't emal it. Go to http://www.bimmerfest.com/forums/sho...ase+calculator __________________ 325 silver black ZSP ZPP ZCP PDC CA XENON Saab 9-3 SE 2000 C240 1999 sold e36 328 touring 1998 sold e39 540 1997 sold Toyota Supra Turbo 1994 sold Porsche 911 1989 sold
	Appreciate 0 Quote

12-29-2005, 12:51 PM	#10
Blueberry415 New Member 1 Rep 12 Posts Drives: 2003 X5 4.4i Join Date: Dec 2005 Location: Montvale, NJ iTrader: (0)	I did the math manually using a $2 calculator, and I also come up with $418 per month. I think the discrepancy here is the dealer place all 36 month's worth of taxes and roll them into the "net cap cost" calculations. what's wierd is that i'm not paying taxes on the down payment upfront. this tax portion was also roll into the "net cap cost". So in the end, if I see it their way, it's a difference of $12/month or difference of $432.
	Appreciate 0 Quote

12-29-2005, 12:52 PM	#11
Blueberry415 New Member 1 Rep 12 Posts Drives: 2003 X5 4.4i Join Date: Dec 2005 Location: Montvale, NJ iTrader: (0)	btw, nice bike. my other ride is a ducati 749.
	Appreciate 0 Quote

12-29-2005, 01:30 PM	#12
E90AW New Member 2 Rep 20 Posts Drives: 07 si Join Date: Jun 2005 Location: NJ iTrader: (0)	where do you get the residual from? i used to be in the business, not for long but what dealerships do is use a program where they plug in numbers for selling price, monthly payment, money down, etc. then a screen comes up with hom much money they want to make, this was at nissan and the biggest profit i saw was like $7000. about quarter of that goes to salesperson's pocket. when it comes to leasing people really have no idea and they end up overpaying. but anyhow, the managers try not to teach the salesperson how to do anything because of experience and they are the shot callers. i lost a 4k dollar deal one day jus because the manager didnt want to go from 6K to 4K in profit.how stupid is that! i also know that carsdirect.com can get you a lease quote, not sure if it's free or not. a lot of dealerships accept carsdirect.com prices. so to get a really real figure i would suggest to do that.
	Appreciate 0 Quote