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Discussion Starter · #1 ·
looking at trading in my '03 330i and leasing an '05 530. Here's the numbers, can you take a few seconds to review and let me know if anything stands out?!

'05 530i (VIN: WBANA73555B819100)

negotiated price: $50,744
pay off balance of trade on 330i: $3295.03
acquisition fee/5 yr. tire & wheel road hazard pkg: $1374 ($825 + $549)
sales/use tax: $156.78

total cash price: $55569.81
capitalized cost reduction: $782.35
adjusted capitalized cost: $54,787.46
residual value: $33,073.90
depreciation/amortized amounts: $21,713.56
rent charge: $4744.44
total: $26,458.00


36 months
base payment: $734.94
monthly sales: $51.45

total - $786.39
 

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tmoody said:
looking at trading in my '03 330i and leasing an '05 530. Here's the numbers, can you take a few seconds to review and let me know if anything stands out?!

'05 530i (VIN: WBANA73555B819100)

negotiated price: $50,744
pay off balance of trade on 330i: $3295.03
acquisition fee/5 yr. tire & wheel road hazard pkg: $1374 ($825 + $549)
sales/use tax: $156.78

total cash price: $55569.81
capitalized cost reduction: $782.35
adjusted capitalized cost: $54,787.46
residual value: $33,073.90
depreciation/amortized amounts: $21,713.56
rent charge: $4744.44
total: $26,458.00

36 months
base payment: $734.94
monthly sales: $51.45

total - $786.39
You need to let us know how many miles/year is the lease for. That affects the residual value, and I can't get your MSRP without it also.

The only thing obvious from what you've given is that the dealer is inflating the acq. charge to $825. The BMWFS acq. fee is a standard $625, the dealer can mark it up $200 if they wish.

I can't comment on your deal because I don't know the specifics of your trade, but putting cap. reduction into a lease is typically frowned upon because you're laying out money ($782 in your case) that you won't get back if you total the car. Better to save the $782 now at the expense of a little higher lease payment - at the 3% lease rate you're dealing with I'd be trying to roll everything I could into the payment.
 

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I'm paying $715.92/month for a euro delivery '05 545i with $10,465 (invoice) worth of options.... 3yr/36k lease, 1500 over euro invoice....

Just something to compare to....
 

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Discussion Starter · #4 ·
lease is 36 months / 12,000 miles per year. the dealer's valued my 330i trade at 26K and my payoff is 29295. The car's in good shape, but because the new body style has come out and all, i think it took a hit. also trading with 32500 miles on it. so, i'm taking a hit on the trade of the car, and rolling that cost back into the lease.
anyway, I don't know what the cap cost reduction value is that's listed, thanks for bringing up the question.
 

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Have you considered selling the 330i privately? Will that help matters any?
 

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You didn't list your MSRP but a 2005 530i on a 3 year/12k lease has a 60% residual and a .00125 money factor, so that should be enough to get the numbers.

Based on your listed residual value, I get a MSRP of $55,123.17 which seems like an odd number for a sticker price. Ignoring that anomaly, using just the same cap. cost and residual value listed in your original post I can't get the numbers you posted. I get a base payment of $712.98 plus 7% sales tax, or $762.89 tax included.

The only way I can get your numbers is using a .0015 money factor. Is your lease deal through BMWFS or another lender?

Code:
MSRP	 $55,123.17 	
		
Sale Price	 $50,744.00 	
Acq. Fee	 $825.00 	
Other fees	 $4,000.81 	
Cap. Red.	 $(782.35)	
Cap. Cost	 $54,787.46 	
		
Residual	 $33,073.90 	 MSRP * Residual% 
Deprec.	 $21,713.56 	 Cap. Cost - Residual 
		
Monthly Depreciation	 $603.15 	
Monthly Interest	 $109.83 	 (Cap. Cost + Residual) * MF 
Base Payment	 $712.98 	
		
Monthly Sales Tax	 $49.91 	
		
Payment w/ Tax	 $762.89 	
Total Payments	 $27,464.03
 

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Discussion Starter · #7 ·
the lease would be through BMWFS and the dealer is saying that their giving me a money factor as if i were an employee. also, along with the acq fee, they're rolling in the 549 wheel/tire road hazard pkg. the amount that may be throwing you off is the 3295 that i still have left to pay on the 330 trade.
i think i remember seeing the MSRP of the vehicle being around 53345 with sport/premium/adaptive xenon/sat rad prep.
 

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tmoody said:
the lease would be through BMWFS and the dealer is saying that their giving me a money factor as if i were an employee. also, along with the acq fee, they're rolling in the 549 wheel/tire road hazard pkg. the amount that may be throwing you off is the 3295 that i still have left to pay on the 330 trade.
i think i remember seeing the MSRP of the vehicle being around 53345 with sport/premium/adaptive xenon/sat rad prep.
With that MSRP I get a payment of $709.45 plus tax, or $759.11 tax included. The only way I get to your dealer's payment of $734.97 is using a money factor of .00154. I'm using the MSRP and cap. cost you posted so we should be on the same page there, and I'm using the BMWFS numbers posted by Tarry for the 2005 530i - 60% residual, .00125 money factor. These numbers include your trade balance, the tire package, and the sales/use tax you originally quoted.

Code:
MSRP	 $55,345.00 	
		
Sale Price	 $50,744.00 	
Acq. Fee	 $825.00 	
Other fees	 $4,000.81 	
Cap. Red.	 $(782.35)	
Cap. Cost	 $54,787.46 	
		
Residual	 $33,207.00 	 MSRP * Residual% 
Deprec.	 $21,580.46 	 Cap. Cost - Residual 
		
Monthly Depreciation	 $599.46 	
Monthly Interest	 $109.99 	 (Cap. Cost + Residual) * MF 
Base Payment	 $709.45 	
		
Monthly Sales Tax	 $49.66 	
		
Payment w/ Tax	 $759.11 	
Total Payments	 $27,328.03
 

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Discussion Starter · #9 ·
thanks DK! They put the numbers together at the end of April. I wonder if the money factor has changed slightly for May. Also, i think our sales tax in TN is 8.25%, slightly higher than what you ran the numbers on. looks like it's pretty on par????
 

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Discussion Starter · #10 ·
actually DK, i see that your numbers are shaking out. i guess i need to ask how the MF is .00154 instead of .00125 as listed. this is all the information they gave me, i don't know where they're hiding the money other than inflating the money factor.
 

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Discussion Starter · #11 ·
found out that through BMWFS since i didn't put down security deposit (equal to the next hundred of my payment - or 800), they set the MF at .0015 instead of .00125. all in all, i pay a little extra a month instead of an additional 800 on the spot.
 

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tmoody said:
found out that through BMWFS since i didn't put down security deposit (equal to the next hundred of my payment - or 800), they set the MF at .0015 instead of .00125. all in all, i pay a little extra a month instead of an additional 800 on the spot.
BMWFS waives the security deposit for an additional .00015 on the money factor, which puts you at .0014. The dealer can mark this up an additional .0004 if they so choose, so they're just squeezing an extra .0001 out of you to get you to .0015. Probably small beer but it's up to you. I'd insist on .0014 money factor and $625 for the acq. fee.

As for the $800 sec. deposit, you'll get that back at the end of the lease so the only reason to waive it is if you are trying to keep the money due at signing to a minimum.
 

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tmoody said:
found out that through BMWFS since i didn't put down security deposit (equal to the next hundred of my payment - or 800), they set the MF at .0015 instead of .00125. all in all, i pay a little extra a month instead of an additional 800 on the spot.
Mulitply that little extra per month by 36. Let's say it's $15.. times 36 equals $540. You're security deposit is $800. So it's costing you more to pay the lease adder than to have them keep your money for 36 months and get it back. I'd pay the lower rate and leave a security deposit.

Also, I personally like to put the acq fee upfront instead of that amount as cap reduction because you don't pay tax on the acq, but you do on cap reduction. Also, you won't pay lease charges on the acq fee since it's usually rolled into the gross cap cost. Just my 2 pesos.
 

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adrian's bmw said:
Mulitply that little extra per month by 36. Let's say it's $15.. times 36 equals $540. You're security deposit is $800. So it's costing you more to pay the lease adder than to have them keep your money for 36 months and get it back. I'd pay the lower rate and leave a security deposit.

Also, I personally like to put the acq fee upfront instead of that amount as cap reduction because you don't pay tax on the acq, but you do on cap reduction. Also, you won't pay lease charges on the acq fee since it's usually rolled into the gross cap cost. Just my 2 pesos.
I agree... make the security deposit..

But, paying acq. fee upfront is a non-event, since you are already rolling over $3000 in negative equity... In contrast to Adrian, I like to roll everything into the cap cost, except 1st payment and security deposit.. That gives me a "true" monthly cost of the car.. However, I would never roll over negative equity.. I like to pay that with one big check.. to learn my lesson for the next time...lol.

Also, in my state, you pay tax on the acquisition fee either way...

They aren't hurting you too bad on this deal.. If they are bumping the money factor by .0001 that is only about $9/mo...

regards,
kyfdx
 
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