Lease price on X5 4.8i

[chris24]

I'm looking at a lease on an '07 4.8i and I'm being quoted around $1039/month on a 30 month, 15k miles per year lease with sales tax paid up front and no down payment (other than required bank fees, security deposit, etc...). The MSRP of my spec-ed out 4.8i is $71,120, and I'm being told that lease price is after a $2500 discount off the MSRP, and that the car is residualized at 63%.

If I'm doing this correctly, that means the finance rate for the lease is about 23% based on the following math:

$71,120 - 2500 = 68,620
$68,620 * .37 = 25,389
payment of $1039 = (25,389 * (1 + Rate) / 30
total payments of $31,170 = 25,398 * (1 + Rate)
31,170/25,398 = 1.23, rate therefore = 23%, which seems very, very high to me. I'm not sure if I'm calculating this correctly or if some of the information I have is off.....

Can anyone tell me what lease rates in the US they're seeing, or if I'm missing something here? Trying to figure out if I'm really getting the discounts I'm being told I am, and just trying to understand how lease calculations are done...

Thanks!

[genemish]

Originally Posted by chris24

I'm looking at a lease on an '07 4.8i and I'm being quoted around $1039/month on a 30 month, 15k miles per year lease with sales tax paid up front and no down payment (other than required bank fees, security deposit, etc...). The MSRP of my spec-ed out 4.8i is $71,120, and I'm being told that lease price is after a $2500 discount off the MSRP, and that the car is residualized at 63%.

If I'm doing this correctly, that means the finance rate for the lease is about 23% based on the following math:

$71,120 - 2500 = 68,620
$68,620 * .37 = 25,389
payment of $1039 = (25,389 * (1 + Rate) / 30
total payments of $31,170 = 25,398 * (1 + Rate)
31,170/25,398 = 1.23, rate therefore = 23%, which seems very, very high to me. I'm not sure if I'm calculating this correctly or if some of the information I have is off.....

Can anyone tell me what lease rates in the US they're seeing, or if I'm missing something here? Trying to figure out if I'm really getting the discounts I'm being told I am, and just trying to understand how lease calculations are done...

Thanks!

Payment of $1,039 mo means you are paying $31,170 over 30 months for the car. $25,389 is depreciation and $5,781 is interest. This interest is over 30 months which means $192.70 per month. Now, the car will be worth $43,231 at the end of 30 months.

Here's the proper formula to calculate interest rate payment on a lease.

( Sale price $68,620 + PRICE AT END OF LEASE $43,231 ) * money factor = Monthly Interest $192.70.

Hence money factor in your case is .00172.

Now, here's how money factor is calculated.

Interest Rate / 2400 = money factor (.00172)

This means your ANNUAL interest rate is 4.13% (which is prob. 4 1/8)

congrats, it's not bad.

[chris24]

Thanks!! I thought my formula had to be way off for that to be the rate...

[genemish]

Originally Posted by chris24

Thanks!! I thought my formula had to be way off for that to be the rate...

no prob.. which dealer is giving you 2500 of msrp? and is it custom order or stock unit?

[chris24]

Custom order from a dealer in the Northeast, friend of a friend kind of thing. Best deal I've come across, just wanted to understand the math to see if the lease rates are fairly good right now or if it would be better to wait...

[genemish]

Originally Posted by chris24

Custom order from a dealer in the Northeast, friend of a friend kind of thing. Best deal I've come across, just wanted to understand the math to see if the lease rates are fairly good right now or if it would be better to wait...

would he be able to do one more in about 12-16 months? I am in NJ

[Thunder22]

Here is the edmunds lease calculator...

http://www.edmunds.com/apps/calc/CalculatorController

[chris24]

I haven't met the guy yet, but you never know... I would also guess, by that time, it won't be as tough as it is right now to get that discount, since they'll have been out for a while by then.