lease deal

[mavic1010]

The calculation is more than just the residual. Their are a few moving pieces. MSRP, Cap Cost, Cap Cost Reduction, Residual, Money Factor and Terms. Ask the dealer for all these and you can easily determine your lease rate. I have a spreadsheet model that does this, and at most it is off by $.01 on the monthly rate. And yes, it frustrates the sales person when I walk in with my laptop.

[2007-x5]

yeah its a pain in the ass all the bs that goes with leasing but to answer you question on why i dont prefer financing vs leasing ...listen at the end of the day its the same shit,i mean u still gonna lose money on both cases;if i finance for 60 months and after those 60 months i paid well over $60,000 on the x5 and lets say i wanna sell it because i dont wanna have a truck for more than 5 years; how much could they possibly give me for that truck? $20,000 or 25,000 at the most? i mean u still be losing like $40,000....so u get the point why i dont prefer financing?

[BGM]

Over the same 5 year period on a finance at $900/month costs you $54K. If you lease for 36 months on one car and then do another lease for 24 months (to make it apples to apples in timeframe) for $900 you spend that same $54K. But at the end of the finance you have probably $25K in equity and no car payment. With the lease you have nothing. That's why with the .9% financing you don't have to chew down the interest rate over time or have to put down a payment to bring the payment down--it's a great deal. I could see it the other way around when rates were at 6%--you could lease the same car and have a smaller payment vs. finance.

[2007-x5]

well yeah you do have $25k at the end of the finance but thats because u allready paid the full cost of the truck wich was 60k and if you lease you dont have to pay the full cost of the truck cuz you pay just about a little less than $40k and the other 25k you didnt even pay it and just about the lease term is over after 36 months,you get another brand new car so....

[BGM]

Well when you are comparing on a per vehicle basis yes you are only paying for what you drive on a lease---but the time value of money over 5 years is the same if you have to turn around and get another one for 24 months when comparing to the same 60 months. $25K equity and no payment sounds better than $900 every month with nothing to show. You keep the financed car for months 60-72 with no payment now you have $10K in payment savings vs. leasing that same period--and it would have depreciated maybe to $20K. Yes you get a new car everytime you lease--I guess that's one of the advantages/reasons people like to lease.

[2007-x5]

yeah it depends if you wanna keep the vehicle for a long time or not...i wish i was very rich so i could pay full msrp in one payment but im not...i know it sucks to be poor...

[Thunder22]

Originally Posted by 2007-x5

wow, i think no dealership would lease a $60,000 x5 for 700 a month...thats like 44% residual wich is crazy low..not even bmw's own residual is that low

I just leased an 08 X5 3.0, $52,500k sticker, $46,500, nothing down, paid taxes and fees up front, $650/month, 3 year lease, 10k miles a year.

[JCL]

Originally Posted by 2007-x5

yeah i know about the 0.0 special but thats for the 2008 models and im looking to get a 2009 ...to answer your question the residual is figured like so: monthly payment x lease deal term + down payment / msrp

so in my case is 960 x 36 + 4000 divided by 57000 wich is 67% residual

That is not the definition of residual. Residual value is what figure is used in the calculation for the value at the end of the lease. We don't have all the lease calculation variables for your example, but your calculation above is not correct. A closer calculation is (57,000-4000-(PM*36))= residual. The payment (PM) then has taxes added back onto it as well. There are other factors, but that is a starting point.

You can't use your (payment including tax) in the calculation. But if you could, using your numbers, your figures would show a residual of 33%, not 67%. Your total payments equal 67%.

Leases are often used to hide the true cost of a vehicle.

[alewifebp]

Running the numbers, I see that with NO money down, and paying MSRP for the car, your payments, with a 57% residual and money factor of 0.0021, the monthly payment not including tax is $868 or so, well below your deal, which I would barely call this a deal.

Adjusting that to $2,000 over invoice, that would bring you down to $809. With a $4,000 cap cost reduction, that would bring you down to $689. For the sake of bumping it up a little further, we are talking about $725/month max you should be paying for this car with that large of a cap cost reduction. Horrible, horrible deal. Run away from this dealer.

[2007-x5]

Originally Posted by JCL

That is not the definition of residual. Residual value is what figure is used in the calculation for the value at the end of the lease. We don't have all the lease calculation variables for your example, but your calculation above is not correct. A closer calculation is (57,000-4000-(PM*36))= residual. The payment (PM) then has taxes added back onto it as well. There are other factors, but that is a starting point.

You can't use your (payment including tax) in the calculation. But if you could, using your numbers, your figures would show a residual of 33%, not 67%. Your total payments equal 67%.

Leases are often used to hide the true cost of a vehicle.

so in my case the calculation is the result of 57,000-4000-34560x36 divided by 57,000? correct?