Okay, I'm new to the leasing thing and I'm about to embark on it so please bear with my newbie questions.

For those of you who are accountants or use your leased vehicle as a business vehicle, how much and how do you go about writing it off? I know you can but I'm curious what the magic formula is.

I do not want to put any money down because conventional wisdom tells me not to. I fear that if I do put money down and the car gets totalled the next day I'm out the money. Besides, why pay up front when you can keep your money until it's due. Any thoughts on putting money down?

I went to my dealer today and talked to the sales manager. He's a very straightforward guy, low pressure, and was good with my X5 purchase from him. I have also sent a couple of people to him and they were treated well. Here's the lease he threw down for me.

2006 E90 330i (To be built for late May/early June delivery.)

-Black Sapphire/Terra (A hot, hot, hot combo!)
-Steptronic (I think given my circs, this is the better option than manual. I know, I know....)
-Premium
-Navigation (Don't care for the iDrive but the the screen is good for all other features like BT.)
-Sport
-Comfort Access (Very cool and convenient!)
-Fold down rear seats with ski bag (For hockey sticks and larger items.)
-PDC (It's a slick system and only a few hundred bucks.)
-Satellite radio prep (Just in case.)
-Metallic paint

Here are the numbers:

-Lease term: 36 months
-Mileage: 15,000 per year (I live in SoCal and 12,000 a year is rare.)
-Money factor: 0.0021 (That is pretty close to cost; 0.0004 above at most.)
-Residual factor: 62%
-Bank fee: $625 (Dealer cost, supposedly.)

-Selling price: $44,340
-MSRP: $46,370
-Dealer cost: $42,495
-Residual value: $28,671.90
-Total depreciation: $16,293.10
-Capital reduction: 0

-Drive off: $1,060.52 (License, registration, doc fees, first payment, $0 security deposit)
-Monthly payment: $654.28 (Including sales tax)

I know the dealer is making $1,845 on the deal. That's when the dealer costs are added up. He's telling me that it's the best he can do considering his "other costs". I went through it with him on the X5. There are things like advertising fees, etc. Most people say they're BS fees. Whatever. I only know that when I was pricing my X5 my dealer's price was only a couple or three hundred more than the best fleet price I could get through contacts. That difference wasn't enough to make me drive hundreds of miles and spend the time to save that money. Plus my dealer only gives loaners to those who bought from them so there's some good will to be had. They are the only BMW dealer within 90 miles.

I went to Leasecompare.com and the lowest lease for 36 months and 15,000 miles is $752. (MF: 0.0023; Residual value: $23,850; higher fees up front; $395 turn-in fee) That sounds like crap. It makes the numbers look good.

What do you think?

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