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BMW X5, Car Leasing, SUV
#1808 of 2262 Help please on some X5 sport activity lease numbers
Jan 18, 2012 (11:08 am)
I hired a auto consultant and they gave me these numbers for a new 2012 bmw x5 sport activity lease (these numbers are before any negotiation , so all based on MSRP). I tried running these with my own calculations I have or online calculators and many things don't match, such as Cap cost (this should be based on MSRP, and Interest Rate is 1.95??? So is really the money factor is 1.95 /2400 = 0.0008125? That seems really low and good?!
If anyone can please direct me to any online site that can generate these same cap cost, monthly payments, or how to do it manually it would help:
Here are the numbers:
CAP COST 64928.00
CAP RED 0.00
Residual VAlue $ 36292.10
TRADE ACV: 0.00
PAY OFF: 0.00
CASH DOWN: 0.00
INT RATE: 1.95
TAX RATE: 8.25
BASE PYMT : 1016.46
1ST PYMT: 1100.32
SEC DEPOSIT: 0.00
LIC. FEE: 598.00
#1809 of 2262 Re: Help please on some X5 sport activity lease numbers [cybopal]
Jan 18, 2012 (11:22 am)
I am in the process of leasing an X5d and I believe the money factor is .00195 and the residual is 56%. The way to calculate the interest rate is to take the money factor and multiply it by 2,400. See with a money factor of .00195 you get an interest rate of 4.68%.
#1810 of 2262 Re: Help please on some X5 sport activity lease numbers [chad39]
Jan 18, 2012 (11:42 am)
Thanks, I got it now. One last help is greatly appreciated. Is is possible to see how they got this cap cost of 64,928 and residual of 36,292.10? I tried punching in the numbers and I know the sport activity model residual % is 49%. But that doesn't add up the residual number here! I thought the residual should be based directly on the MSRP here (with all required optoins included) which is $67,745 . Once I get the numbers right, I've to work on what to negotiate and how much below from the MSRP. Any advise on that? Does any of these fees look sketchy?
#1811 of 2262 Re: Help please on some X5 sport activity lease numbers [cybopal]
Jan 18, 2012 (11:52 am)
Ok. I got an explanation for that too from the lease agent. He said usually the residual is set at 58% and he had to deduct $3000 because I asked for 20k miles instead of 15K. That's 58% of MSRP minus $3000 (at 20 cents a mile for 5000 miles addtional a year for 3 years)
#1812 of 2262 Re: Help please on some X5 sport activity lease numbers [cybopal]
Jan 19, 2012 (9:20 am)
That is an expensive way to buy 5000 extra miles per year. All BMW finance leases allow you to buy extra miles at 16 cents per mile up to three months before the end of the lease. This deal is costing you about $90 per month ($30 per month per extra $1k) extra and you are locked into that expense even if you don't drive the extra miles. Your first 15k miles don't cost you 20 cents per mile. Consider the option to lease at 15k miles and buy the extra miles at a discount if/when you need them.
#1813 of 2262 Re: Help please on some X5 sport activity lease numbers [cybopal]
Jan 19, 2012 (9:30 am)
Also, don't negotiate off or down from MSRP. Negotiate a price above dealer invoice. It's the best way to know if you're getting a fair deal. Get as close to invoice as possible, but $750 to $1,250 above invoice is common. don't let them charge you more than that because buying club prices are usually $1k to $1250 over invoice.
#1814 of 2262 Re: Help please on some X5 sport activity lease numbers [abmwfan]
by kyfdx HOST
Jan 19, 2012 (9:39 am)
Not positive, but I think the more expensive models now have a higher price per extra mile....
That's a recent change, and probably why the OP was quoted a higher per-mile rate...
#1815 of 2262 Re: Help please on some X5 sport activity lease numbers [kyfdx]
Jan 19, 2012 (11:13 am)
Purchase of lease miles during the lease period is still discounted at 20% off the contract rate. From a finance perspective, the question is whether it is cost effective to lock in the extra miles and pay finance charges in an extra $90 per month payment if there's a chance that they might not use all those miles and they can pay for the actual excess miles in month 32. Keeping your money and making a payment in 3 years at a discount is cheaper than financing the payments for 3 years. The individual would have to weigh that tradeoff.
#1816 of 2262 Re: Help please on some X5 sport activity lease numbers [abmwfan]
by kyfdx HOST
Jan 19, 2012 (3:12 pm)
Agreed... no point in paying for miles that might not be used...
But, miles that are added upfront only reduce the residual.... they aren't added to the CAP.... So, the amount subject to finance charges is actually reduced by adding more miles, not increased..
#1817 of 2262 2012 X5 5.0 Lease - Is it good?
Jan 20, 2012 (3:38 pm)
Pl. let me know if this is good to go through FOR 2012 x5 50 36 month, 20000 miles/year
MSRP - $69195 (options: Tech package, running boards, bmw app). The model comes with the premium pkg (which is standard that includes navigation etc., )
Cap cost - $64775. The dealer said it's just $500 above invoice and I was send to the manager through some recommendation.
money factor - 0.00195 (or) 4.68 (current APR)
Residual (39208) - Additional 5000 miles per year added here in residual at 20 cents per mile . which reduces the residual by $3000. After reading some recommendation here from my previous post, I'm thinking of making it 15K miles and then if it's only 16 cents/mile over for additional miles, then that might be a good choice.
Down payment: $4000. Due at signing : $1757
Comes around to : $877/month