Looking at leasing now

[3.0 hero]

Lease vs. Buy CPO

I got cold feet about my upcoming purchase this weekend. I am going to be pricing out a lease. I see some people posting huge lease payments. Granted, it is not for the 3.0 that I want. I have a few contacts that work at different BMW dealerships. I am going to shop around. For a base idea, BMWUSA's website offers this lease: http://www.bmwusa.com/vehicles/X5/30...=4&duration=36

I am going to see waht I can do reducing the down payment and upgrading a few options. I was originally against leasing, but then I started thinking about the pros. The lease appeals to me over the CPO program because:

1. The X5 is covered the length of the lease.
2. The X5 is new.
3. I can walk away at the end of the term.
4. The buyout is cheaper than getting a 3 year old CPO X5, and I have no real idea what that vehicle's history is.

I have no trade in to worry about. I should be able to get a good deal. Wish me luck.

[3.0 hero]

How does this deal sound to you all:

2006 X5 3.0 w/Premium package

$1025 drive off (includes all tax, license fees etc + first month's payment)
$625/mo
36 mo. lease
12K miles per year

[Thunder22]

what's the purchase price of the car?
what's the lease factor?
what's the residual?
what's the bank fee?

[gatchalian]

hello

[gatchalian]

new member trying to post...

[Thunder22]

Originally Posted by gatchalian

new member trying to post...

there's a test forum

http://www.xoutpost.com/test-forum/

and welcome

[3.0 hero]

Originally Posted by gresch

what's the purchase price of the car?
what's the lease factor?
what's the residual?
what's the bank fee?

I went on AAA to look at all this stuff (see below). It is Friday. I have a headache , and all the stuff below is only going to make it worse. My friend at the dealership said I'd be paying $400 over their cost. I know that leases can get confusing, especially to people like me who had to take calculus three times to pass. I'll study up over the weekend (or not) and hopefully I'll get a decent deal regardless if I understand this stuff or not.

Oh...Thanks gresch for trying to help.



Here's The Algebra Part!

• Depreciation Portion - Required to be disclosed on all contracts, this amount is applied to the principal balance. Subtract the residual (end value) (Y) from the initial cost (CAP Cost) of the car (X). Divide (/) the balance by the number of months in the lease (W).
  (X - Y) / W = monthly depreciation.
• Lease Charge Portion - Equivalent to an interest rate, the lease rate must be known to figure out a lease paying. It is usually disclosed as a factor beginning with two zeros (e.g. .00375, .004). This is the cost of using the leasing company's money until the lease is terminated. Add the initial cost (X) plus (+) the residual value (Y). Then multiply (·) the total by the lease rate factor (z).
  (X + Y) · z = leasing charge per month (added to the depreciation = your base payment).
• Sales/Use Tax Portion - Tax is paid monthly and calculated on the base payment (depreciation + lease charge). When added to the base payment, you arrive at the total monthly lease payment.

Need an example? Let's pretend you want a four-year (48 month) lease:

• MSRP - Manufacturers Suggested Retail Price = $20,500 (before any discounts)
• CAP Cost - (Negotiated price!) = $18,900
• Residual Value - (Based on the MSRP · 45%. 20,500 · 45% = $9,225) = $9,225 (residual end value)
• Lease Rate - .00375 (.00375 · 24 = 9% interest)

$18,900 - $9,225 = $9,675/48 = $201.56 (Depreciation)
$18,900 + $9,225 = $28,125 · .00375 = $105.47 (Loan charge)
$201.56 + $105.47 = $307.03 (Base Payment)
$307.03 · 7.75% (tax; your tax rate may vary) = $23.79
$23.79 + $307.03 = $330.82 (Total Payment)
Whew! If you've made it this far, you are to be congratulated

[Thunder22]

ok, i'm good with the algebra, i've been leasing for years

Good luck with the deal, and congrats on the new wheels!

[Eric5273]

Originally Posted by 3.0 hero

How does this deal sound to you all:

2006 X5 3.0 w/Premium package

$1025 drive off (includes all tax, license fees etc + first month's payment)
$625/mo
36 mo. lease
12K miles per year

Just so you know, $1025 drive off does not include sales tax. It looks like they rolled your tax into the payment.

I just got a 2006 X5 3.0 w/Premium Package, Sports Package, Navagation, Xenon, Auto Dimming Mirrors, and 6-speed manual. MSRP was $52,045.

My lease was based on $1000 over dealer invoice. Details were:

$0 down, $586/month + tax
10k miles per year
36 month lease

As for fees due at inception, I paid $625 bank fee, $600 refundable security deposit, $586 first monthly payment, $188 doc & motor vehicle fees + $1687 sales tax (8% sales tax here in NY)

Hope this helps....

Edit: BTW, the residual value on my lease was 60%, but that was based on an April promotion which is when I ordered the car.

[3.0 hero]

2006
Black on Black
Premium package (Sunroof, Dakota Leather)
Rear climate package
Xenons
3.0i

My wife is totally stoked. It was worth it to sell my old sports car to see her this excited. I have no buyers remorse with this one. No mods planned for this one- besides chrome exhaust tips, since the stockers are a tad on the ugly side. See you on the road!