Need help on Lease Payment Calc.

[wohooo]

All,

I am considering to lease an 08. Money factor is way too low to pass up. I am looking at a Sedan and the MSRP is around 62,500k. The dealer is willing to sell it at 56k. Here is my calculation based on 36 months/ 10k miles:

Depreciation Fee=

62500 X .55=34375

Inception fees ~1800
Down payment = 2500

Cap Cost= 55,300


(55,300-34,375)/36= $581

Finance Fee = (55,300 + 34,375) X .00025= $22

=$603 +TAX

Does $603 + TAX sound correct?

Thanks in advance!

Wohooooooooooooooooooo

[shakan]

The formulae look right, you might check it here http://www.autoleaseadvisers.com/calc/calc.php

[wohooo]

Thanks Shakan! What a steal!

[shakan]

Originally Posted by wohooo

Thanks Shakan! What a steal!

If I were you, I'd stick the down payment in the bank or pick 2 MSDs to lower the money factor. You can only lose a down payment (if a car gets totaled) and never gain from it.

[wohooo]

How low can you reduce the money factor by?

[shakan]

Originally Posted by wohooo

How low can you reduce the money factor by?

You can reduce it by 0.00014 on the sedan by putting 2 MSDs.

[nasa60]

Originally Posted by shakan

You can reduce it by 0.00014 on the sedan by putting 2 MSDs.

Yep, that's what I did. Final MF is .00011. I'm only paying $10/month for the financing.

[SCCAForums.com]

I believe you have to do the residual .55 off the purchase price ($56K) not the MSRP.

??

Dave

[fq1]

Originally Posted by SCCAForums.com

I believe you have to do the residual .55 off the purchase price ($56K) not the MSRP.

??

Dave

Incorrect. He has computed the residual correctly but I don't know how he arrives at the cap cost of 55,300.

[wohooo]

Actually...55,300 is the Cap reduction

price negotiated 56,000 + 1,800 (fees)- 2,500 (down payment)= 55,300

[fq1]

Originally Posted by wohooo

Actually...55,300 is the Cap reduction

price negotiated 56,000 + 1,800 (fees)- 2,500 (down payment)= 55,300

That is correct as long as you are not paying the fees upfront. I thought you were going to pay the fees upfront.

[shakan]

Originally Posted by nasa60

Yep, that's what I did. Final MF is .00011. I'm only paying $10/month for the financing.

What is the best dealer in Alabama to negotiate with? I live in Atlanta but may cross the border for Christmas shopping.

[nasa60]

Originally Posted by shakan

What is the best dealer in Alabama to negotiate with? I live in Atlanta but may cross the border for Christmas shopping.

I got mine from Century in Huntsville. I was also negotiating with Jim Tompkins of United and Adrian Avila of South Atlanta. Jim had several M3s left when I last talked with him. I think Century only has 3 left. Two are verts (both about $72k) and they have a White Sedan with Fox Red leather but it only has Premium pkg and Sirius. The stripper MSRP is only $58k. You could probably lease that one for about $580 before taxes.

[shakan]

Originally Posted by nasa60

I got mine from Century in Huntsville. I was also negotiating with Jim Tompkins of United and Adrian Avila of South Atlanta. Jim had several M3s left when I last talked with him. I think Century only has 3 left. Two are verts (both about $72k) and they have a White Sedan with Fox Red leather but it only has Premium pkg and Sirius. The stripper MSRP is only $58k. You could probably lease that one for about $580 before taxes.

Thanks, I only care about the tech package, so I'll check the other guys you mentioned.

[Driver72]

Wow you got .00025 money factor (0.6%) on the M3?

That's fantastic.
What's up with the $1,800 "inception fee" however.