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  #1  
Old 08-26-2005, 05:32 PM
BayAreaBMWFan BayAreaBMWFan is offline
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Exact formula for prepaid leases

It has been made clear that a prepaid lease is not a cap cost reduction and hence there are not gap insurance issues. For people living in high tax rates, it may make sense to prepay the lease since the post tax interest on the money you are paying up-front is going to be less than the interest you are paying for the lease.

Can a dealer post the exact formula used for prepaid leases?

I am thinking of the following algorithm:
a) Use the standard Money Factor
b) Use (residual * 2) * MF to calculate the monthly interest cost. This is in place of (residual + purchase price) * MF.
c) Add the interest costs to the depreciation costs to come up with the monthly payment
d) Multiply the amount in (c) with the length of the lease
e) Add 8.25% Sales tax on the amount in (d)
f) Take home the car without having any payment to make for three years.

From what I have heard, instead of using the above formula, BMWFS, provides a lower money factor. Do people have an idea about whether that MF is equivalent to the price generated by the algorithms above?
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  #2  
Old 08-26-2005, 07:01 PM
Bill97Z Bill97Z is offline
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MF should be zero? Why are you paying interest on money you are paying all upfront and not borrowing!
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Old 08-26-2005, 07:41 PM
BayAreaBMWFan BayAreaBMWFan is offline
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Quote:
Originally Posted by Bill97Z
MF should be zero? Why are you paying interest on money you are paying all upfront and not borrowing!
You are still borrrowing the residual. Hence the MF. The MF will be zero if you pay the entire cost of the car upfront and then BMWFS returns you the residual value after you turn in the leased vehicle (sort of you financing BMWFS).
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  #4  
Old 08-27-2005, 08:47 AM
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Quote:
Originally Posted by Bill97Z
MF should be zero? Why are you paying interest on money you are paying all upfront and not borrowing!
My understanding is that with a lease you are paying the interest no matter what, even if you make all the payments in one shot they still charge you. BMWFS will allow you to make extra payments on a traditional finance if you want to save interest charges but how much you save, I'm not exactly sure.
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  #5  
Old 08-27-2005, 01:33 PM
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Quote:
Originally Posted by BayAreaBMWFan
It has been made clear that a prepaid lease is not a cap cost reduction and hence there are not gap insurance issues. For people living in high tax rates, it may make sense to prepay the lease since the post tax interest on the money you are paying up-front is going to be less than the interest you are paying for the lease.

Can a dealer post the exact formula used for prepaid leases?

I am thinking of the following algorithm:
a) Use the standard Money Factor
b) Use (residual * 2) * MF to calculate the monthly interest cost. This is in place of (residual + purchase price) * MF.
c) Add the interest costs to the depreciation costs to come up with the monthly payment
d) Multiply the amount in (c) with the length of the lease
e) Add 8.25% Sales tax on the amount in (d)
f) Take home the car without having any payment to make for three years.

From what I have heard, instead of using the above formula, BMWFS, provides a lower money factor. Do people have an idea about whether that MF is equivalent to the price generated by the algorithms above?
Actually... a prepaid lease uses a lower money factor than the normal lease.. And, it is figured assuming that you are prepaying ZERO.. So, the reduced money factor is multiplied by (gross cap cost + residual).. Then the monthly payments are added up, and that is your prepay amount ... + taxes and fees..

So, all of the savings is in the reduced money factor... As an example... at one time last year, the money factor for the 330i was .00225, but if you prepaid, they dropped the money factor to .0008.... Assume a 40K car with a selling price of 37K.. and a residual of 24K

Depreciation is $12K

Finance charge is ($37K + 24K) X .0008 X 36 = $1756.80

Prepay lease is $12,000 + $1756.80 + acq. fee + tax, etc..

This is about $3200 less than if you made 36 payments... (if using MF of .00225)

That is a substantial discount, but the spread is not always that large... I'm sure the spread also varies according to model, and length of term.. Finding out the correct base MF for the prepaid lease is the hard part.

regards,
kyfdx
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Old 08-27-2005, 08:38 PM
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Quote:
Originally Posted by kyfdx
Actually... a prepaid lease uses a lower money factor than the normal lease.. And, it is figured assuming that you are prepaying ZERO.. So, the reduced money factor is multiplied by (gross cap cost + residual).. Then the monthly payments are added up, and that is your prepay amount ... + taxes and fees..

So, all of the savings is in the reduced money factor... As an example... at one time last year, the money factor for the 330i was .00225, but if you prepaid, they dropped the money factor to .0008.... Assume a 40K car with a selling price of 37K.. and a residual of 24K

Depreciation is $12K

Finance charge is ($37K + 24K) X .0008 X 36 = $1756.80

Prepay lease is $12,000 + $1756.80 + acq. fee + tax, etc..

This is about $3200 less than if you made 36 payments... (if using MF of .00225)

That is a substantial discount, but the spread is not always that large... I'm sure the spread also varies according to model, and length of term.. Finding out the correct base MF for the prepaid lease is the hard part.

regards,
kyfdx
I don't know if my head is going to explode trying to understand the people with a PH.D in leasing or what! You guys certainly know what you are talking about i hope, because I sure don't...... (I have never leased but I'm intrigued by it for my next purchase maybe). I will have to get a BA in leasing before I take that jump at least I figure.
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  #7  
Old 08-27-2005, 11:26 PM
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Quote:
Originally Posted by schley
I don't know if my head is going to explode trying to understand the people with a PH.D in leasing or what! You guys certainly know what you are talking about i hope, because I sure don't...... (I have never leased but I'm intrigued by it for my next purchase maybe). I will have to get a BA in leasing before I take that jump at least I figure.
If you just throw away the fancy jargon, leasing is really simple to understand.
There are only 3 calculations, and the total payment is the sum of the 3
calculations: monthly depreciation + monthly rent + tax.

Depreciation is the diff bet. the net selling price (including bank fee less
any cap reduction a.k.a. down payment) and the residual value divided by
the term.

Rent is the net selling price (a.k.a. adjusted cap cost) plus the residual value times the the rent charge factor.

Now, all you have to do is add the tax ~ piece of cake!

There is a pencil and paper worksheet that I posted as a 'sticky' here in
this forum a long time ago.

Print it out and give it a try!

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  #8  
Old 08-28-2005, 02:05 AM
BayAreaBMWFan BayAreaBMWFan is offline
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Quote:
Originally Posted by kyfdx
As an example... at one time last year, the money factor for the 330i was .00225, but if you prepaid, they dropped the money factor to .0008.... Assume a 40K car with a selling price of 37K.. and a residual of 24K

.....

This is about $3200 less than if you made 36 payments... (if using MF of .00225)

That is a substantial discount, but the spread is not always that large... I'm sure the spread also varies according to model, and length of term.. Finding out the correct base MF for the prepaid lease is the hard part.

regards,
kyfdx
Thanks kyfdx. That is a pretty substantial discount off the base MF. And it is a lot more than what they (residual * 2)* BASE MF would suggest. Even with that formula, prepaying the lease made sense in high income tax states since you typically are going to earn less post tax than the 5-6% the lease rates correspond to.

Does BMWFS publish the prepaid lease numbers for every car/term etc?
Or
Is there a standard formula I could use?
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  #9  
Old 08-28-2005, 02:10 AM
BayAreaBMWFan BayAreaBMWFan is offline
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Couldn't agree more with Jon.
Bring up Excel and within 5-10 minutes you should be able to convert Jon's pen and paper sheet to a spreadsheet which will do all the calculations you want to do.

Money Factors make leases simple to calculate; things would have been tough if you had to work directly with interest rates. Note that though we multiply by 2400 to get the equivalent interest rate, that is not an exact match.
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  #10  
Old 08-28-2005, 12:15 PM
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Thanks Jon for your info. I have worked a couple scenarios and I don't want to turn this thread into an, "educate the dumb guy who doesn't understand leases", but I had a couple questions.

#1 Is the cap cost the negotiated selling price of the car? Capitialization cost?

#2 The MF(money factor) is negotiable? I have read through some other posts now and I read where the dealer can mark up the MF by .0004? So if I'm going to get a lease I want to get the MF at the buy rate, which is the lowest possible?

#3 How often do the buy rates change? Daily? I have seen some on the dealer forum, and was curious if they are standard for the month or just sporadically change?

#4 I have seen where you can use outside lenders for leases. So i would contact a bank or company that offers leases and negotiate a deal for the car I wanted (the only factor to negotiate is the mf, trying to get the buy rate)? Then take that to the dealership and simply negotiate a selling price (cap cost)?

#5 BMWFS offers leases and is the buy rate the same for every single lease company and those companys just mark up the buy rate and call it a MF?

#6 Is the residual (which is the depreciation) negotiable?

#7 You can do an ED and lease. This seems like an outstanding deal. How does the dealership get paid by this if I negotiate, for example, $1,000 over invoice cap cost? I would then hope to get the buy rate at whatever that is. Do they just make a portion of that 1,000 over invoice since the residual is 70%, they only make 30% of the 1,000?


Start laughing and then I don't mind anyone giving me a sarcastic ribbing in your reply for I don't know alot about leases I admit. Thanks
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  #11  
Old 08-28-2005, 12:30 PM
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Quote:
Originally Posted by kyfdx

So, all of the savings is in the reduced money factor... As an example... at one time last year, the money factor for the 330i was .00225, but if you prepaid, they dropped the money factor to .0008.... Assume a 40K car with a selling price of 37K.. and a residual of 24K
Right in principle, wrong in the details....

With a pre-pay lease, you use the standard lease rate (not the promotional sales-support rates) and reduce it by .0008. Currently, that would give you a pre-pay lease buy rate of .00195.

With that info in mind, you need to see if the current sales support rate on the model you are looking at is below .00195-- if it is, you are better off to make the monthly payments vs. the pre-pay.

There is an exception to the rule here-- if you want to do a pre-pay but still want to use the sales support promo rates (which you technically can't use), you can always have the dealer send in a check with your lease contract for the amount of all you lease payments and the instructions to apply that check towards your payments due. Basically, you sign up for a normal lease but send in a check for all the payments with the contract.
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Old 08-28-2005, 12:41 PM
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Quote:
Originally Posted by schley
Thanks Jon for your info. I have worked a couple scenarios and I don't want to turn this thread into an, "educate the dumb guy who doesn't understand leases", but I had a couple questions.

#1 Is the cap cost the negotiated selling price of the car? Capitialization cost?

#2 The MF(money factor) is negotiable? I have read through some other posts now and I read where the dealer can mark up the MF by .0004? So if I'm going to get a lease I want to get the MF at the buy rate, which is the lowest possible?

#3 How often do the buy rates change? Daily? I have seen some on the dealer forum, and was curious if they are standard for the month or just sporadically change?

#4 I have seen where you can use outside lenders for leases. So i would contact a bank or company that offers leases and negotiate a deal for the car I wanted (the only factor to negotiate is the mf, trying to get the buy rate)? Then take that to the dealership and simply negotiate a selling price (cap cost)?

#5 BMWFS offers leases and is the buy rate the same for every single lease company and those companys just mark up the buy rate and call it a MF?

#6 Is the residual (which is the depreciation) negotiable?

#7 You can do an ED and lease. This seems like an outstanding deal. How does the dealership get paid by this if I negotiate, for example, $1,000 over invoice cap cost? I would then hope to get the buy rate at whatever that is. Do they just make a portion of that 1,000 over invoice since the residual is 70%, they only make 30% of the 1,000?


Start laughing and then I don't mind anyone giving me a sarcastic ribbing in your reply for I don't know alot about leases I admit. Thanks

#1: The cap cost is the amount you cap the lease at-- selling price plus any accessories, negative trade equity, acquistion fee, taxes, etc. minus any cap cost reduction (down payment) or positive trade equity.

#2: Dealers can and often do mark up the rate. Negotiate this like any other part of the transaction. You can't go any lower than the buy rate, or else they are paying you to finance.

#3: BMWFS puts out monthly rates, but sometimes they will extend for several months and sometimes BMWFS will do mid-month adjustments to help boost sales.

#4: If you use your own non-captive lender, you do all your negotiation on the lease terms with that bank, and only negotiate the car price with the dealer. As far as the dealer is concerned, it's like you are paying cash.

#4a: If the dealer decides to do the deal with another lender, you can still negotiate with the dealer on the terms of the lease.

#5: Every lender sets its own buy rate and has its own rules on how much dealers can mark up the rate.

#6: BMWFS publishes residual percentages that are the "maximum" number-- you can negotiate any residual value you want that is LOWER than this number, but you can't go higher. If you negotiate a lower residual, you'll pay more each month over the term of the lease to make up the difference.

#7: Regardless of how you take possession of the car and how you pay for it, the dealer makes the same profit on the car. If you lease through BMWFS, the dealer is paid the proceeds from the sale of the car when the contract is funded by the bank. So, if the deal is $1,000 over invoice, the dealer will get the entire sale price from BMWFS, and then they have to pay their bank. If your dealer finances their inventory with BMWFS, they'll get the difference between their floorplan amount for that car and the contract proceeds.
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Old 08-28-2005, 01:05 PM
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Sarafil you are a huge help. So in summary if I want to lease I'm now assuming the following:

The following are negotiable:

1. The selling price of the car I'm leasing. I can offer $1,000 over invoice for the car and any options, just like if I was buying the car outright.

2. The MF is negotiable. I would want to find out the buy rate from the dealer forum and put the buy rate in my offer.

3. The residual is negotiable. I would want to find out the highest possible residual for the milage I would want from the dealer forum and put that in my offer.

Questions:

1. Are the taxes dependent on the residual or do you pay 100% of the taxes on the cap cost? For example if my residual is 70%, do I pay tax on 30% of the cap cost or 100% of the cap cost evenly divided over the term of the lease?

2. If I do ED there are no MACO fees, and BMWFS makes your second lease payment?

3. I have read you can pre purchase overage miles for your lease at .15 instead of .20 and if you don't use them then you get a refund? This seems like a good deal for protection as you are saving 25% on any mileage overage? Opinions?

4. Do most people use BMWFS for their leases? Percentages? You must use BMWFS for any ED?

Thanks again and I'm slowly walking from lease ignorant to understanding.
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Old 08-28-2005, 01:11 PM
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Quote:
Originally Posted by schley
#7 You can do an ED and lease. This seems like an outstanding deal.
ED + lease is an insane deal. Because you are using US MSRP for calculating the
residual, and the ED cap cost, the depreciation is disproportionately low,
resulting in an incredibly low lease payment (relatively speaking). There are
certainly other factors to consider such as the expense of travelling to Europe,
but still there is added value there obviously. Other downsides would be
making payments while your BMW is floating on a ship, or sitting at the
distribution center...
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Old 08-28-2005, 01:13 PM
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Quote:
Originally Posted by schley
Sarafil you are a huge help. So in summary if I want to lease I'm now assuming the following:

The following are negotiable:

1. The selling price of the car I'm leasing. I can offer $1,000 over invoice for the car and any options, just like if I was buying the car outright.

2. The MF is negotiable. I would want to find out the buy rate from the dealer forum and put the buy rate in my offer.

3. The residual is negotiable. I would want to find out the highest possible residual for the milage I would want from the dealer forum and put that in my offer.

Questions:

1. Are the taxes dependent on the residual or do you pay 100% of the taxes on the cap cost? For example if my residual is 70%, do I pay tax on 30% of the cap cost or 100% of the cap cost evenly divided over the term of the lease?

2. If I do ED there are no MACO fees, and BMWFS makes your second lease payment?

3. I have read you can pre purchase overage miles for your lease at .15 instead of .20 and if you don't use them then you get a refund? This seems like a good deal for protection as you are saving 25% on any mileage overage? Opinions?

4. Do most people use BMWFS for their leases? Percentages? You must use BMWFS for any ED?

Thanks again and I'm slowly walking from lease ignorant to understanding.

1. Each state treats taxes differently... some on the selling price of the car, some on the montly payment only. In Rhode Island, we only pay sales tax on the amount of the monthly payment (rent charge + depreciation charge). Find out how your state taxes leased vehicles.

2. If you lease, there is now a rate-adder for ED and in exchange BMWFS will waive the second payment (the first is due when you sign the lease contract).

3. If you purchase excess miles up front, BMWFS will refund you any unused miles above 15,000 per year. So, if you contract for 15,000 per year but only use 10,000, you get nothing. But, if you contract for 18,000 and only use 15,000, they'll credit you for the unused 3,000 miles.

4. You don't have to use BMWFS for ED leases or finance deals, but to be honest with you it is probably one of the easiest ways to go since BMWFS is a captive finance company and will work with you on the BMW ED program. Some other lenders don't understand or do not like to work with the ED program because for they are paying for a car that isn't even in the US and there is alot more potential risk to them at that point. That doesn't mean that you can't do it... many people here have financed there cars with other banks and done ED, and I'd imagine that someone has leased also.
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Old 08-28-2005, 01:34 PM
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Ok so here is my attempt to sound like I know what I'm talking about for a proposed lease.

Let's say my e90 330i, I negotiated a $40,000 ED selling price and is 15% off of MSRP.


I just checked out the 330i lease deal as of august 5th to the following. (I'm assuming this is the highest possible residual value, and the buy rate for the money factor?)


24 mo/15k mi 68% Residual Value Money Factor .00250 Base Rate

Now I take the 85% cap cost I negotiated minus the 68% residual (which is the highest possible for 15k miles) and I come up with 17% as my depreciation I must use for my payment for 24 months.

Now I ...... I ... I....? How do I finish my formula? Crap I thought I had it but I drew a blank........... I'm in cali which is 8.25% sales tax(although I don't know how to factor that into my payment).

Sorry...... again....
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Old 08-28-2005, 03:15 PM
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This is great - fantastic information - thanks guys. I'm with SHLEY - let's finish it off

Also - I asked this question on a different thread a little while back but wanted to clarify something.
My question was - is the residual calculated on the US MSRP - the answer I got was yes. I just want to clarify - that is the MSRP for a US (not ED) delivery?

Thanks again guys - appreciate it.

Quote:
Originally Posted by schley
Ok so here is my attempt to sound like I know what I'm talking about for a proposed lease.

Let's say my e90 330i, I negotiated a $40,000 ED selling price and is 15% off of MSRP.


I just checked out the 330i lease deal as of august 5th to the following. (I'm assuming this is the highest possible residual value, and the buy rate for the money factor?)


24 mo/15k mi 68% Residual Value Money Factor .00250 Base Rate

Now I take the 85% cap cost I negotiated minus the 68% residual (which is the highest possible for 15k miles) and I come up with 17% as my depreciation I must use for my payment for 24 months.

Now I ...... I ... I....? How do I finish my formula? Crap I thought I had it but I drew a blank........... I'm in cali which is 8.25% sales tax(although I don't know how to factor that into my payment).

Sorry...... again....
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Old 08-28-2005, 03:43 PM
bmw325 bmw325 is offline
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Quote:
Originally Posted by schley
Ok so here is my attempt to sound like I know what I'm talking about for a proposed lease.

Let's say my e90 330i, I negotiated a $40,000 ED selling price and is 15% off of MSRP.


I just checked out the 330i lease deal as of august 5th to the following. (I'm assuming this is the highest possible residual value, and the buy rate for the money factor?)


24 mo/15k mi 68% Residual Value Money Factor .00250 Base Rate

Now I take the 85% cap cost I negotiated minus the 68% residual (which is the highest possible for 15k miles) and I come up with 17% as my depreciation I must use for my payment for 24 months.

Now I ...... I ... I....? How do I finish my formula? Crap I thought I had it but I drew a blank........... I'm in cali which is 8.25% sales tax(although I don't know how to factor that into my payment).

Sorry...... again....
Ok, here's how it works w/ your numbers:
US MSRP of e90 330: ~$45000 (don't know exactly what it is- you can plug in the exact number)
Residual Value at end of lease (US MSRP * residual percentage expressed as a decimal): 45,000 * .68 = 30600
Depreciation (Cap cost - residual value) 40,000- 30,600 = 9400
Monthy depreciation cost (total depreciation / # of months ) = 9400/36 = 261
Rent charge (Residual + Cap cost) * money factor. The money factor on an ED lease will be .0008 higher than the base rate when using BMWFS ( I think that's the right number) so, .00250 + .0008 = .0033. Now, for the formula: 30,600 + 40,000 = 70,600 * .0033 = 232.98
Now add the depreciation cost to the rent charge: 232.98 + 261 = $493.98

Now, I don't know what the sales tax rules are in CA for leases. In NY where I live, I'd pay the sales tax on the montlhly payment amount so 493.98 * .0825 = 40.75. Add that to the monthly cost so, 493.98 + 40.75 = 534.73. I think that's how it works in CA too, but I'm not sure. In some states (like I said, I don't know what the rules are in CA) you ahve to pay sales tax on the ENTIRE amount of the car (40,000 in your case) upfront when you start the lease. Then, I think they charge sales tax on the monthly payments on top of that (but I don't think CA does this).

Don't get confused by all the terms and numbers-- just stay calm and remember that figuring out a lease using these formulas is something that a 5th grader could do.
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Last edited by bmw325; 08-28-2005 at 03:48 PM.
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Old 08-28-2005, 03:54 PM
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schley schley is offline
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wow so i think I got it....... I'm going to bookmark this post and refer to it when I'm due for my next new car, which won't be for a couple years I guess, since I'm waiting for redelivery of my e90 i took 8/1..............

This is very plain information when it is broken down, thank you very much for your patience and helpful explanation.
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Old 08-28-2005, 04:17 PM
BayAreaBMWFan BayAreaBMWFan is offline
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Quote:
Originally Posted by SARAFIL
Right in principle, wrong in the details....

With a pre-pay lease, you use the standard lease rate (not the promotional sales-support rates) and reduce it by .0008. Currently, that would give you a pre-pay lease buy rate of .00195.

With that info in mind, you need to see if the current sales support rate on the model you are looking at is below .00195-- if it is, you are better off to make the monthly payments vs. the pre-pay.
So the reduction is the standard 0.0008 for all cars and terms, right?

Are the sales-support rates also published? Do the rates we see posted by leasecompare, include sales support rates?


Quote:
Originally Posted by SARAFIL
There is an exception to the rule here-- if you want to do a pre-pay but still want to use the sales support promo rates (which you technically can't use), you can always have the dealer send in a check with your lease contract for the amount of all you lease payments and the instructions to apply that check towards your payments due. Basically, you sign up for a normal lease but send in a check for all the payments with the contract.
But then you are hoping the dealer will not go under and lose your payments. It is very unlikely that a BMW dealer will go under but even very sane folks are known to make that rare bad bet.
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Old 08-28-2005, 07:04 PM
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SARAFIL SARAFIL is offline
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Quote:
Originally Posted by BayAreaBMWFan
So the reduction is the standard 0.0008 for all cars and terms, right?

Are the sales-support rates also published? Do the rates we see posted by leasecompare, include sales support rates?
The sales support rates are the ones posted monthly on the leasing forum-- they are the special rates that you see like .0025 for the E90, .0008 for the 330Ci coupe, .00075 for the X5 4.4, etc...

If there is no sales support for your given model, you must use the standard rate (currently .00275). Also, if you are using a pre-pay lease, you must start with the standard rate and reduce it by .0008. This method applies for all models.

Using the number I just mentioned, you'd see it makes little sense to pre-pay on a 330Ci coupe, X3, X5, etc. which currently have very attractive sales support rates. The rate for the pre-pay lease would be as much as twice (or more!!) than the sales-support rate.





Quote:
But then you are hoping the dealer will not go under and lose your payments. It is very unlikely that a BMW dealer will go under but even very sane folks are known to make that rare bad bet.
The check for the payments should be made payable to BMW Financial Services, not your dealer. If you wish, you could sign up for the lease and then send in the big check for all the payments along with the check for your second payment directly to BMWFS, but you'd need to follow up and make sure the account for it properly.
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Old 08-28-2005, 07:09 PM
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Quote:
Originally Posted by robg
Now add the depreciation cost to the rent charge: 232.98 + 261 = $493.98
The rent charge is 261 a month?

I'll lend you the money and I'll only charge you 200 a month.
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Old 08-28-2005, 09:30 PM
bmw325 bmw325 is offline
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Quote:
Originally Posted by Moderato
The rent charge is 261 a month?

I'll lend you the money and I'll only charge you 200 a month.

Actually, the rent charge came out to $231. Still, I agree, it sounds like a lot of money.
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Old 08-29-2005, 01:13 AM
suntan suntan is offline
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Quote:
Originally Posted by kyfdx
Assume a 40K car with a selling price of 37K.. and a residual of 24K

Depreciation is $12K
Wait, I'm confused....shouldn't the depreciation be $13K?

Also, thanks, robg...I've been trying to figure out this whole leasing business thingy as well --- I'm thinking of placing an ED for an E90 in a few months and can't figure out if I should lease or purchase outright --- the example you worked out above was extremely informative.

Cheers!
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Last edited by suntan; 08-29-2005 at 01:24 AM.
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Old 08-29-2005, 07:31 AM
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Quote:
Originally Posted by robg
Actually, the rent charge came out to $231. Still, I agree, it sounds like a lot of money.

The rent charge for my 05 M3 is 7200 / 36 months = 200 a month. I think that's ridiculous and it's supposed to be a good lease deal. No way I'd pay $231 rent charge a month to drive a 330.
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