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First time BMW *****
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17 Posts
Discussion Starter · #1 ·
Hi there. I am looking for a new lease on a car, since the one that I have right now is ending next week. One question that I have is the Rent Charge. How is this number calculated? I have a proposal here for a 2014 320i, base model.

Also, about the acquisition fee, is this price the standard in all BMW dealerships?

The numbers that my representative is showing me are:

ITEMIZATION OF AMOUNT DUE AT LEASE SIGNING OR DELIVERY

Capitalized Cost Reduction $ 154.15
First Monthly Payment $ 418.95
Initial License Fees $ 305.00
Sales/Use Tax $ 6.80
Electronic Vehicle Registration $ 15.00
Sales tax on Capitalized Cost Red. $ 13.10
Document Processing Charge $ 80.00
California Tier Fee $ 7.00
TOTAL $ 1,000.00 (This I paid at the dealership).

ITEMIZATION OF GROSS CAPITALIZED COST

Agreed upon value of Vehicle as
equipped at the time of lease
signing $ 31,917.35
Acquisition fee $ 925.00
Total Gross Capitalized Cost $ 32,842.35

MY MONTHLY PAYMENT IS DETERMINED AS SHOWN BELOW

Gross Capitalized cost $ 32,842.35
Capitalized Cost reduction - $ 145.15
Adjusted Capitalized Cost =$ 32,688.20
Residual Value -$ 21,829.50
Depreciation =$ 10,858.70
Rent Charge +$ 3,041.98
Total of Base Monthly Payments =$ 13,900.68
Lease Payments / 36
Base Monthly payment = 386.13
Sales/ Use Tax +$ 32.52
Total Monthly Payment = $ 418.95

The negotiated price in the car got lower in the talks, initially it was a little higher, but the doubt that I have is the rental fee, which makes my payment higher. Is this amount a standard when leasing a car like the one that I intend to get? Not the rental fee, but the amount.

Thank you very much for your time and opinions.
 

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Registered
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4,433 Posts
The rent charge is also known as the "money factor". It's calculated using a decimal (something like .00120 for example) which can be multiplied by 2400 to give you an approx "interest rate", since that's really what it is. Ask your dealer what the money factor is and post it here. The buy rate from BMWFS is allowed to be marked up, and if you have not mentioned this, the dealer is likely doing so. Post it here, someone will know what the buy rate is for your model I'm sure.

You can also use multiple security deposits to lower this amount. If you have cash on hand, it would make more sense to roll that $1000 down into the lease and use it towards security deposits.
 

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Freedom isn't free!!
2018 Glacier Silver 340i M Sport
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20,001 Posts
Rent is the interest. A lease is nothing more than a balloon payment loan. You negotiate it just like a purchase.

Money Factor x 2,400 equals the interest rate.
Adjusted Capitalized Cost is the amount financed.
Residual is the amount the balloon payment would be.

Put those in a balloon note calculator and you will get the exact lease payment before taxes.

BMW dealers can markup the MF by .0004, which is .96%. The base acquisition fee is $725 and can be marked up by $200, which has been done in the offer you currently have.

This month the base MF is .00129. The MF on your deal is at .0015. I calculated that by using the Adj. Cap Cost, the residual and the before tax payment to get the interest rate, then divided that by 2,400 to get the MF.

http://bretwhissel.net/cgi-bin/amortize - you can use this calculator to calculate unknowns forward and backward.
 

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Resident Curmudgeon
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25,530 Posts
Always nice when a lease is ending next week and you need to find, a car and negotiate and close a deal...plenty of time to find the best ride, best options, best colotpr and best deal...

;)
 

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First time BMW *****
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17 Posts
Discussion Starter · #5 ·
Thank you all for taking the time in helping me with this decision. I really appreciate it. You all been very helpful. Now I am more informed, a lot more.

I'll keep you posted with the outcome.
 

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Greg Poland Pacific BMW
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3,135 Posts
Hey Antonio,
If you are looking for a simple transaction I can help. Please contact me before you make any moves.
 

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Slightly Less Obsessed
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134 Posts
Always nice when a lease is ending next week and you need to find, a car and negotiate and close a deal...plenty of time to find the best ride, best options, best colotpr and best deal...

;)
I know more than one person who does that routinely. I guess it makes sense for those who aren't "car people" and just want to lease a reliable car they can live with for three years from whichever dealer they can get a decent deal from. :dunno:
 

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First time BMW *****
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17 Posts
Discussion Starter · #8 ·
Hi again to all of you. I appreciate the time for posting on this topic. I've got a good deal from another dealer, but I could negotiate from the information that you gave me, it helped a lot. Thank you very much for sharing your knowledge with me.

Also, I appreciate the interest in the deal Greg, when this deal ends I'll get in touch with you.

Thank you all again!
 
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