09-28-2009, 01:23 PM
Freedom isn't free!!
Location: Chicago, Edgewater (via Tennessee & Texas)
Join Date: Nov 2005
Mein Auto: '06 Sonora/Beige 330i :-)
Here's a balloon note calculator you can use. http://www.bretwhissel.net/cgi-bin/amortize Just on the lease the interest/rent is going to be over $7k, based on the numbers you provided.
Originally Posted by jhu321
the 14,600 rent is very stiff even for financing the entire sum.... @ 4% over 5 years the entire sum would probably net about a 6~7k total interest paid...
One benefit to leasing as opposed to a simple interest balloon note is that with the lease the interest/rent is applied to the payoff equally each month, which may reduce the payoff faster than with a simple interest balloon would after about the first half of the lease. Another possible benefit to leasing is that if market rates for the car are significantly lower than the contracted residual, it may be possible to buy the car for less than the contracted residual. But this is a relatively rare situation and should not be counted on.
Here's a good lease calculator.http://www.autoleaseadvisers.com/calc/calc.php
You should also read the sticky in this forum about Multiple Security Deposits, which bring down the money factor and you get back at the end.
The base MF for your deal would be 0.00255, which equates to a little over 6%. This is the "buy rate" and the dealer can mark it up .0004, which equates to almost 1%. http://www.bimmerfest.com/forums/sho...d.php?t=397877
Lease Payment Calculation Formula:
(Cap Cost – Residual Value) / Term = Depreciation
(Cap Cost + Residual Value) X Base Rate = Interest
Depreciation + Interest = Base Monthly Payment
Terms Used in Lease Formula:
CAP COST = Vehicle Purchase Price (amount financed)
RESIDUAL VALUE = MSRP (window sticker) X Residual %
TERM = Length of Lease in Months (3 years = 36 months)
BASE RATE = Dealer's Buy Rate (dealer can mark this up for profit)
Present - '06 E90 330i sport; Past - '04 E46 ZHP, '00 E46 328i
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Last edited by tturedraider; 09-28-2009 at 06:10 PM.