|
|
|
|
|
|
BMW Garage | BMW Meets | Register | Today's Posts | Search |
|
BMW 3-Series (E90 E92) Forum
>
math help on leasing deal?
|
|
12-28-2005, 03:51 PM | #1 |
New Member
1
Rep 12
Posts |
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 = (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? |
12-28-2005, 05:43 PM | #3 |
New Member
1
Rep 12
Posts |
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
|
12-28-2005, 06:21 PM | #4 |
Colonel
198
Rep 2,485
Posts |
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
|
12-28-2005, 06:38 PM | #5 |
Private First Class
9
Rep 138
Posts
Drives: 325 354 LCSW ZSP ZPP ZCP
Join Date: Nov 2005
Location: Raleigh, NC
|
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
|
12-28-2005, 06:44 PM | #6 |
Private First Class
9
Rep 138
Posts
Drives: 325 354 LCSW ZSP ZPP ZCP
Join Date: Nov 2005
Location: Raleigh, NC
|
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
|
12-28-2005, 07:34 PM | #7 |
New Member
1
Rep 12
Posts |
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
|
12-28-2005, 08:37 PM | #8 |
Private First Class
9
Rep 138
Posts
Drives: 325 354 LCSW ZSP ZPP ZCP
Join Date: Nov 2005
Location: Raleigh, NC
|
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
|
12-28-2005, 08:41 PM | #9 |
Private First Class
9
Rep 138
Posts
Drives: 325 354 LCSW ZSP ZPP ZCP
Join Date: Nov 2005
Location: Raleigh, NC
|
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
|
12-29-2005, 12:51 PM | #10 |
New Member
1
Rep 12
Posts |
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
|
12-29-2005, 01:30 PM | #12 |
New Member
2
Rep 20
Posts |
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
|
Bookmarks |
|
|