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Discussion Starter · #1 ·
I have a pretty good lease quote on a new 545. About $3k below MSRP. So far, so good. Problem is that the dealer seems to calculate the residual by using 61% times MSRP, while calculating depreciation by using 39% times the agreed price. I want to pay only 61% times the agreed price at lease end to buy out.

My question is -- should residual not be based on actual sale price?
 

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The residual value is the residual percentage multipled by the MSRP. The amount of depreciation you will pay during the lease is the difference between the agreed purchase price minus the capitalized cost reduction minus the residual value.

RESVAL = MSRP x RES% (61% in your case)

DEP = PRICE - CAPCOST - RESVAL

They are calculating the residual value correctly. I don't understand what they're doing with the depreciation. It would only make sense if the agreed price was the same as the MSRP.

MaxBuck said:
I have a pretty good lease quote on a new 545. About $3k below MSRP. So far, so good. Problem is that the dealer seems to calculate the residual by using 61% times MSRP, while calculating depreciation by using 39% times the agreed price. I want to pay only 61% times the agreed price at lease end to buy out.

My question is -- should residual not be based on actual sale price?
 
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