Lease pricing logic

I was car shopping for several months before I decided on the 2012 X3.

I spoke with my accountant, and she mentioned when you lease a vehicle, you're renting half the price of the vehicle for three years.

This helped me think about how much I should be spending on a lease, however after I signed the line on my contract I realized I ended up paying a lot more than half the price of the vehicle over three years.

I'm checking out the lease agreement now, and the line that states
total gross capitalized cost of the vehicle is: $42569.00

My monthly payments plus fees amounts to: $24505.00

I am paying more than 50% of the value of this vehicle in order to rent it for three years.
--Doesn't seem right.

The process of leasing can be confusing and exhausting, I'm sure it's intentional because when you're in a state of confusion, fear, etc. it's much harder to make executive decisions soundly. That's why car salespeople insult and harass potential buyers.

the depreciation is much faster at the beginning of your car's life than later on. also, you are paying interest on the financed cost. and perhaps sales tax was also rolled into your payment. thus, it makes sense that the total payments are what they are.

otoh, there are significant tax advantages to leasing if you lease in the name of your business [if you have one].

Sure it seems right. But maybe your dealer marked everything up? Its hard to tell how good your lease deal was from what you provided. Here are the key elements:

*******> ********>

CAP COST = Vehicle Purchase Price (amount financed)

RESIDUAL VALUE = MSRP (window sticker) X Residual %

TERM = Length of Lease in Months (3 years = 36 months)

RATE = Dealer's Buy Rate + markup

Don't forget there are also taxes to consider.

and don't forget the number of miles allowed per year.

Thanks j3ff and Me530, I guess it is right, actually I got a good deal according to the price estimator on bmwusa.com...

Factoring the cost is always a lot more complex than I would imagine.