:bigpimp:Lease rates are so ridiculous; do you know how they calculate them? They take the residual value of the car (let's say it's a $40k 330i and the res. is 60%) and add it to the cap cost of the car ($40k). Then they multiply the lease rate (let's say 0.0025 x 24) by the sum of the residual and cap cost, then divide by the lease term to get the "interest" they're gonna charge you.
In short...
(($40,000 + (0.6 * $40,000)) * (0.0025 * 24)) / 36 months = your monthly lease surcharge... = $106/month
...on top of your lease payment...
($40,000 * 0.4) / 36 months = $444
... so ...
$444 + $106 = $550
And that's if you pay the tax up-front (which you'd be wise to do as you don't wanna pay interest on tax!).
So you really end up paying an extra $3800 for the 3 years, and that's lost money so if you finance the baloon cost at the end, well, you're screwin yerself once more especially if the residual was very optimistic (unless you negotiate the lease-end buyout cost well).
Of course I say this with my foot in my mouth, as I am currently a lessee. =)
In short...
(($40,000 + (0.6 * $40,000)) * (0.0025 * 24)) / 36 months = your monthly lease surcharge... = $106/month
...on top of your lease payment...
($40,000 * 0.4) / 36 months = $444
... so ...
$444 + $106 = $550
And that's if you pay the tax up-front (which you'd be wise to do as you don't wanna pay interest on tax!).
So you really end up paying an extra $3800 for the 3 years, and that's lost money so if you finance the baloon cost at the end, well, you're screwin yerself once more especially if the residual was very optimistic (unless you negotiate the lease-end buyout cost well).
Of course I say this with my foot in my mouth, as I am currently a lessee. =)
