Welcome to Bimmerfest -- The #1 Online Community for BMW related information! Please enjoy the discussion forums below and share your experiences with the 200,000 current, new and past BMW owners. The forums are broken out by car model and into other special interest sections such as BMW European Delivery and a special forum to voice your questions to the many BMW dealers on the site to assist our members!

Please follow the links below to help get you started!

Go Back   Bimmerfest - BMW Forums > BMW Buyers Guide - Dealers, resources, pricing, tips and trick > Ask-A-BMW-Dealer

Ask-A-BMW-Dealer
Talk to our team of BMW Client Advisors from supporting BMW dealerships. Get all of your BMW pricing, ordering, buying, financing, and leasing questions answered here!

Reply
 
Thread Tools Display Modes
  #1  
Old 07-30-2016, 03:00 PM
mh4ll mh4ll is offline
Registered User
Location: VA
 
Join Date: Jul 2016
Posts: 10
Mein Auto: 2014 435i
2014 435i Lease Back-calculation

Long time lurker, first time poster. I got my first BMW about a year and a half ago via a lease takeover. The deal was so good that I didn't do a huge amount of calculation on the lease specifics at the time. The car has been great and I'm starting to think about my next one. I've read a lot on this forum and elsewhere and feel like I have a pretty good handle on lease calculations, but want to start by back-calculating from my current lease to get a spreadsheet down and make sure I understand everything.

My current lease details
2014 435i xDrive Coupe
24 mo / 10k miles
MSRP $62,675 ($48,000 base, $13,725 options, $950 destination)
Sale price $48,527
Monthly Payment $499
Cap Cost Reduction $342
No MSD
Residual $41,512
Total Cap Cost (includes sale price, $149 DMV fee, $770.25 NJ tax, $23.97 tax on cap cost reduction, $296 mechanical breakdown protection, $795 acquisition fee, $395 doc fee) $50,956
Depreciation/Amortized Amounts $9,102
Rent charge $2,874

I took a stab at starting with one of the lease calculation spreadsheets from another topic in this forum and started plugging in numbers. I can't make the residual % work out to a nice round number like it should be, nor get everything else to match up quite right. I suspect part of that may be that things have changed since 2014 and the spreadsheet doesn't quite match up. Can anyone take a look at where I've started and improve it? Note that the numbers in the spreadsheet are things I played around with to get the amounts about right, and are probably wrong. All the amounts above are straight off the lease, so accurate.

Thanks so much!
Reply With Quote
Advertisement
  #2  
Old 07-30-2016, 03:00 PM
mh4ll mh4ll is offline
Registered User
Location: VA
 
Join Date: Jul 2016
Posts: 10
Mein Auto: 2014 435i
It seems like the forum won't allow me to post links as a new member. The spreadsheet I was trying to share is at docs.google.com/spreadsheets/d/1iyah00tp_7Uy5xDZZ_NJQp-tU8aOlSvTVa36aaJSDxM/edit
Reply With Quote
  #3  
Old 07-30-2016, 05:31 PM
tturedraider's Avatar
tturedraider tturedraider is offline
Freedom isn't free!!
Location: Chicago, Edgewater (via Tennessee & Texas)
 
Join Date: Nov 2005
Posts: 18,820
Mein Auto: '06 Sonora/Beige 330i :-)
(Capitalized Cost - Residual)/lease term = monthly depreciation
(Capitalized Cost + Residual) x Money Factor = monthly rent/interest

Monthly depreciation + monthly rent = monthly payment (before monthly tax, depending on locale)

Capitalized cost = amount financed, includes sale price + whatever else gets rolled in, such lease acquisition fee, taxes due upfront, misc. fees; anything not paid in cash upfront.

Residual = MSRP x residual percentage
__________________

Present - '06 E90 330i sport; Past - '04 E46 ZHP, '00 E46 328i
www.bmwcca.org
member #388003 - Use me as a referral & you could win a one day ///M Driving School!!

Last edited by tturedraider; 07-30-2016 at 05:37 PM.
Reply With Quote
  #4  
Old 07-30-2016, 08:08 PM
ZoomVT ZoomVT is offline
Officially Welcomed to the 'Fest
Location: Rye, NY
 
Join Date: May 2008
Posts: 838
Mein Auto: 14' 328i xDrive GT
Quote:
Originally Posted by mh4ll View Post
Long time lurker, first time poster. I got my first BMW about a year and a half ago via a lease takeover. The deal was so good that I didn't do a huge amount of calculation on the lease specifics at the time. The car has been great and I'm starting to think about my next one. I've read a lot on this forum and elsewhere and feel like I have a pretty good handle on lease calculations, but want to start by back-calculating from my current lease to get a spreadsheet down and make sure I understand everything.

My current lease details
2014 435i xDrive Coupe
24 mo / 10k miles
MSRP $62,675 ($48,000 base, $13,725 options, $950 destination)
Sale price $48,527
Monthly Payment $499
Cap Cost Reduction $342
No MSD
Residual $41,512
Total Cap Cost (includes sale price, $149 DMV fee, $770.25 NJ tax, $23.97 tax on cap cost reduction, $296 mechanical breakdown protection, $795 acquisition fee, $395 doc fee) $50,956
Depreciation/Amortized Amounts $9,102
Rent charge $2,874

I took a stab at starting with one of the lease calculation spreadsheets from another topic in this forum and started plugging in numbers. I can't make the residual % work out to a nice round number like it should be, nor get everything else to match up quite right. I suspect part of that may be that things have changed since 2014 and the spreadsheet doesn't quite match up. Can anyone take a look at where I've started and improve it? Note that the numbers in the spreadsheet are things I played around with to get the amounts about right, and are probably wrong. All the amounts above are straight off the lease, so accurate.

Thanks so much!
Good job on putting the data into the spreadsheet. The calculations for lease have not changed over time, only the specific numbers.

My guess on the residual not matching up is because the car had more than 500 miles when you bought it, correct? I have not yet built this into the sheet, I am going to add the ability to include this in the next version and calculate the updated residual.

Also, based on the discount you got (huge) my guess is that it was an executive demo or a loaner, right?

Do you know for sure that .00130 was the base MF at the time? or maybe the dealer marked it up some?

I dont believe the $296 from breakdown protection is not residualized.

I tried but I cant quite get to your payment just yet, but I may just need a little more information - once the residual is accurate it should get within a couple of bucks.
Reply With Quote
  #5  
Old 07-31-2016, 07:24 AM
mh4ll mh4ll is offline
Registered User
Location: VA
 
Join Date: Jul 2016
Posts: 10
Mein Auto: 2014 435i
Quote:
Originally Posted by ZoomVT View Post
Good job on putting the data into the spreadsheet. The calculations for lease have not changed over time, only the specific numbers.

My guess on the residual not matching up is because the car had more than 500 miles when you bought it, correct? I have not yet built this into the sheet, I am going to add the ability to include this in the next version and calculate the updated residual.

Also, based on the discount you got (huge) my guess is that it was an executive demo or a loaner, right?

Do you know for sure that .00130 was the base MF at the time? or maybe the dealer marked it up some?

I dont believe the $296 from breakdown protection is not residualized.

I tried but I cant quite get to your payment just yet, but I may just need a little more information - once the residual is accurate it should get within a couple of bucks.
Thanks for the reply and excellent spreadsheet template! Good catch on the odometer -- it was 2,903 when the lease was signed. What is the calculation to adjust the residual? Not entirely sure if the car was a demo/loaner -- must have been something like that to rack up so many miles. The lease has the "New" box checked, as opposed to "Demo", but that's all I see.

Not sure about the money factor. All I have is the "rent charge" listed to try and figure that out. As far as taxes, I think the way NJ sales tax works is that it is based on the total payments and paid up-front. Is the "Use" tax option the correct one to have selected for this?

Also what is "mechanical breakdown protection" and why would someone get that on a lease?

Last edited by mh4ll; 07-31-2016 at 07:30 AM.
Reply With Quote
  #6  
Old 07-31-2016, 07:38 AM
ZoomVT ZoomVT is offline
Officially Welcomed to the 'Fest
Location: Rye, NY
 
Join Date: May 2008
Posts: 838
Mein Auto: 14' 328i xDrive GT
On the miles, you calculate the extra depreciation and reduce the residual. Right now that reduction is, I think, $0.20 per mile. Back then I don't know what it was, my guess is that it was $0.16.
I will build that into the template at some point.

Now, that charge, I have no idea what it is, you should know, it was your lease. My guess is that it's a BS protection program the dealer included to inflate their profit.

Yes, you would choose "use", but I'm still working on the tax calculation. It's difficult add every state has it's own rules, and if you brought a trade in it makes even lower complicated. You also have to account for taxes on some fees but not others, and taxes on any cap reduction.
I have built it as well as I could, but I think it still needs work. I never trade in, and I never pay a cap reduction, so I'm usually pretty accurate. Even then, the way it is now, it should get pretty close.
Depending on how the dealer structures discounts, rebates, and down payment - all that affects how tax is calculated.
Reply With Quote
  #7  
Old 07-31-2016, 08:17 AM
jjrandorin jjrandorin is offline
Officially Welcomed to the 'Fest
Location: San Diego
 
Join Date: May 2013
Posts: 2,830
Mein Auto: 435 Grand Coupe MSport
Quote:
Originally Posted by ZoomVT View Post
On the miles, you calculate the extra depreciation and reduce the residual. Right now that reduction is, I think, $0.20 per mile. Back then I don't know what it was, my guess is that it was $0.16.
I will build that into the template at some point.

Now, that charge, I have no idea what it is, you should know, it was your lease. My guess is that it's a BS protection program the dealer included to inflate their profit.

Yes, you would choose "use", but I'm still working on the tax calculation. It's difficult add every state has it's own rules, and if you brought a trade in it makes even lower complicated. You also have to account for taxes on some fees but not others, and taxes on any cap reduction.
I have built it as well as I could, but I think it still needs work. I never trade in, and I never pay a cap reduction, so I'm usually pretty accurate. Even then, the way it is now, it should get pretty close.
Depending on how the dealer structures discounts, rebates, and down payment - all that affects how tax is calculated.
OP said he did a lease takeover, so did not negotiate the original lease. Sounds like OP has all the paperwork since he assumed the lease, but since he did not negotiate it in the first place is trying to figure out all the nuts and bolts. I was hoping you would chime in on this one Zoom since you have that excellent spreadsheet.
__________________
2016 435 Grand Coupe Estoril Blue MSport |Hex. EB Trim-Blk. Dakota | MSoort | Technology | Drivers Asst. | Drivers Assist+|Lighting |Track Pack W/ 442 Wheels |Heated Frnt Seats | Smartphone Integration | HK Stereo (His)

2016 X5 XDrive35d Space Grey |Blk Dakota W/ Fineline Oak | MSport | Lighting Pack | Premium Pack | Drivers Assist | Drivers Assist + | ACC W Stop N Go | 20" Wheels| Smartphone Integration | Multi Contour Seats | HK Stereo (hers)

BMW CCA #477341
Reply With Quote
  #8  
Old 07-31-2016, 09:01 AM
ZoomVT ZoomVT is offline
Officially Welcomed to the 'Fest
Location: Rye, NY
 
Join Date: May 2008
Posts: 838
Mein Auto: 14' 328i xDrive GT
Ahh, you are right, I totally missed that part. Sorry OP.

Now I understand... I think the calculation is close enough. Once you update the residual, it will probably right on the money.
Reply With Quote
  #9  
Old 07-31-2016, 01:57 PM
mh4ll mh4ll is offline
Registered User
Location: VA
 
Join Date: Jul 2016
Posts: 10
Mein Auto: 2014 435i
Does the MSRP (for purposes of calculating the residual %) exclude the Destination Charge? If so, I get:

Adjusted MSRP = 61725
Mileage residual adjustment = 2903 x 0.16 = 464
Original Residual if vehicle was new = 41512 + 464 = 41976
Residual % = 41976 / 61725 = 0.6800
So 62% base + 6% for 24mo

This is a nice round number and makes sense. However, Zoom's spreadsheet seems to make it clear that the destination charge is to be included in the residual. I can't make the numbers work out in this case?

For the money factor:

Monthly rent = 2874 / 24 = 120
Money Factor = monthly rent / (capitalized cost + residual) = 120 / (50613 + 41512) = 0.00130

This is a number that makes sense and seems right.

Anyone know what "Mechanical Breakdown Protection" is? It is one of only two "Optional Products and Services" that is preprinted on the lease form (the other being "maintenance agreement" which is not checked on my lease) so given that it is preprinted by BMWFS it must be a little more official than something the dealer made up to tack on $296. Next to this line there is a "Provider" field that says "BMW Key Replacement" and a "Term" field that says 12 months. Maybe this is a year of lost key coverage? Weird...

Last edited by mh4ll; 07-31-2016 at 02:01 PM.
Reply With Quote
  #10  
Old 07-31-2016, 02:08 PM
ZoomVT ZoomVT is offline
Officially Welcomed to the 'Fest
Location: Rye, NY
 
Join Date: May 2008
Posts: 838
Mein Auto: 14' 328i xDrive GT
The destination and handling is included in the MSRP - so it sounds like you figured it out. So when you enter the number, enter the MSRP - destination fee so that the calculator uses the right total MSRP.

I never heard of the Mechanical breakdown protection, so I cant help you there. I have a 2014 and dont remember it as being offered.
Nice job backing into the numbers
Reply With Quote
  #11  
Old 07-31-2016, 04:57 PM
Orient330iNYC's Avatar
Orient330iNYC Orient330iNYC is offline
Flying monkey herder
Location: Wall St
 
Join Date: Jul 2002
Posts: 7,735
Mein Auto: Daihatsu Terrios
the residual adjustment was 0.20 per mile (now 0.25 per mile) first 500 miles are no charge.

not sure when the switch was but it but generally its mileage -500 X 0.2 or 0.25
__________________
Past: 2001 330i ZSP/ZPP/Step
Past: 2004 S60R 6MT Sport
Past: 2007 335i 6MT ZSP/ZCW/322/655
Past: 2010 335xi ZMP/ZCW/ZPP/PPK/PE
Past: 2013 335i 6MT ZMM/ZDH/ZTP/3AG/494/508
Present: 2016 F34 335i xDrive ZCW/ZDA/ZDH/ZTP/ZMP/2V5/5DL

Current Homeland Threat Level:
Reply With Quote
  #12  
Old 07-31-2016, 08:16 PM
ZoomVT ZoomVT is offline
Officially Welcomed to the 'Fest
Location: Rye, NY
 
Join Date: May 2008
Posts: 838
Mein Auto: 14' 328i xDrive GT
Thanks for the clarification!
Reply With Quote
Reply

See More Related BMW Stories


Forum Navigation
Go Back   Bimmerfest - BMW Forums > BMW Buyers Guide - Dealers, resources, pricing, tips and trick > Ask-A-BMW-Dealer
Today's Posts Search
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On



Forum Jump


All times are GMT -7. The time now is 03:55 AM.


Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2016, vBulletin Solutions, Inc.
© 2001-2015 performanceIX, Inc. All Rights Reserved .: guidelines .:. privacy .:. terms