Lease trade in Mess....Take a look please
- Thread starter Unit74
- Start date
I'd compare what your dealer is offering you to the following:
BMWFS 2005 Lease Programs – Effective 11/5/2004
Add 2% to Residual Value for 12k mi/yr and 3% for 10k mi/yr on all terms
X3 2.5i
24 mo/15k mi – 67% Residual Value – Money Factor .00210 Base Rate
36 mo/15k mi – 58% Residual Value – Money Factor .00210 Base Rate
48 mo/15k mi – 45% Residual Value – Money Factor .00240 Base Rate
60 mo/15k mi – 38% Residual Value – Money Factor .00240 Base Rate
X3 3.0i
24 mo/15k mi – 67% Residual Value – Money Factor .00210 Base Rate
36 mo/15k mi – 58% Residual Value – Money Factor .00210 Base Rate
48 mo/15k mi – 49% Residual Value – Money Factor .00240 Base Rate
60 mo/15k mi – 41% Residual Value – Money Factor .00240 Base Rate
BMWFS 2005 Lease Programs – Effective 11/5/2004
Add 2% to Residual Value for 12k mi/yr and 3% for 10k mi/yr on all terms
X3 2.5i
24 mo/15k mi – 67% Residual Value – Money Factor .00210 Base Rate
36 mo/15k mi – 58% Residual Value – Money Factor .00210 Base Rate
48 mo/15k mi – 45% Residual Value – Money Factor .00240 Base Rate
60 mo/15k mi – 38% Residual Value – Money Factor .00240 Base Rate
X3 3.0i
24 mo/15k mi – 67% Residual Value – Money Factor .00210 Base Rate
36 mo/15k mi – 58% Residual Value – Money Factor .00210 Base Rate
48 mo/15k mi – 49% Residual Value – Money Factor .00240 Base Rate
60 mo/15k mi – 41% Residual Value – Money Factor .00240 Base Rate
When you lease, you're tying up the leasing company's money while you're driving their car. They rightfully expect you to pay interest on that money, the same as with a purchase loan.
This interest is called Money Factor, sometimes called lease factor, which is expressed as a small decimal number such as .000255. Money factors can be converted to annual interest rate by multiplying by 24 ( yes, it's always 24 and not related to the length of the loan in months ). For example, a money factor of .000255 multiplied by 24 = .0612 = 6.12%.
This interest is called Money Factor, sometimes called lease factor, which is expressed as a small decimal number such as .000255. Money factors can be converted to annual interest rate by multiplying by 24 ( yes, it's always 24 and not related to the length of the loan in months ). For example, a money factor of .000255 multiplied by 24 = .0612 = 6.12%.
Lease payments are made up of three parts, a Depreciation Fee, a Leasing Fee, and Sales Tax.
Depreciation Fee + Leasing Fee + Tax = Monthly Lease Payment
Let's look at each of these components.
The Depreciation Fee portion of your payment simply pays the leasing company for the loss in value of it's car, spread over the term of the lease. This is calculated as follows:
Depreciation Fee = ( Net Cap Cost - Residual ) divided by Lease Term
Remember, Net Cap Cost is the Cap Cost, or selling price, you negotiate with the dealer, plus any add-on fees, minus any Cap Cost Reductions ( down payment or trade in ). A good lease deal is when you have the lowest possible Net Cap Cost with the highest possible Residual.
The Finance Fee portion of your payment, usually called lease charge or rent charge, is calculated as follows:
Finance Fee = ( Net Cap Cost + Residual ) x Money Factor
Depreciation Fee + Leasing Fee + Tax = Monthly Lease Payment
Let's look at each of these components.
The Depreciation Fee portion of your payment simply pays the leasing company for the loss in value of it's car, spread over the term of the lease. This is calculated as follows:
Depreciation Fee = ( Net Cap Cost - Residual ) divided by Lease Term
Remember, Net Cap Cost is the Cap Cost, or selling price, you negotiate with the dealer, plus any add-on fees, minus any Cap Cost Reductions ( down payment or trade in ). A good lease deal is when you have the lowest possible Net Cap Cost with the highest possible Residual.
The Finance Fee portion of your payment, usually called lease charge or rent charge, is calculated as follows:
Finance Fee = ( Net Cap Cost + Residual ) x Money Factor
I don't see a problem at all with the deal they have offered and it does seem fair overall.
When I lease I don’t care about anything past the expense I pay. I try for the max residual, lowest MF, and minimal cash down. The bad side to this is that my car would suck on a trade and I think BMW made some mistakes with future value of the ZHP when introduced. I pay under $500.00/mo, 15,000/year, and my car stand now about $7,000.00 upside-down, but this is BMW FS problem.
I leased mine from Chris G. at Riverside because they had the best deal. I’ve never met anyone from the dealership because all paperwork was sent FedEx and the car was delivered to my house. They had the best deal around when I leased my car.
When I lease I don’t care about anything past the expense I pay. I try for the max residual, lowest MF, and minimal cash down. The bad side to this is that my car would suck on a trade and I think BMW made some mistakes with future value of the ZHP when introduced. I pay under $500.00/mo, 15,000/year, and my car stand now about $7,000.00 upside-down, but this is BMW FS problem.
I leased mine from Chris G. at Riverside because they had the best deal. I’ve never met anyone from the dealership because all paperwork was sent FedEx and the car was delivered to my house. They had the best deal around when I leased my car.
Last edited:
He may say he's rolling over the same $5k inequity into a discount off the sticker of the new X3. But I would check with other dealerships for a similarly equiped X3. I've heard they're offering good deals. You can always ditch the 330 then take your money to where you're getting the best deal on the new SUV.
yea trading in a lease or involving other factors complicates matters and the dealer can make up for a seeming loss during the "financing" calculations.. that's why you should, deal on the car first, then mention the trade in after all the numbers are settled, so you won't get screwed while being lost in pile of numbers.
as aNoodle mentioned, call around for lease pricing on the x3, w/out mentioning the early lease termination. see what kind of figures you get.
but figure it this way, how much was your 330 stickering for when you got it? compare that to the x3's sticker, and you'll have at least a descent idea as to whether you are being taken for a ride. (i don't really think you are, but then again, i dont' knwo the full situation) since both lease payments seems to be pretty much negligible. it doesn't sound too bad, but keep digging around, you may find a better deal. good luck![[thumb]](/images/smilies/icon_smile_thumb.gif "Thumbs Up [thumb]")
as aNoodle mentioned, call around for lease pricing on the x3, w/out mentioning the early lease termination. see what kind of figures you get.
but figure it this way, how much was your 330 stickering for when you got it? compare that to the x3's sticker, and you'll have at least a descent idea as to whether you are being taken for a ride. (i don't really think you are, but then again, i dont' knwo the full situation) since both lease payments seems to be pretty much negligible. it doesn't sound too bad, but keep digging around, you may find a better deal. good luck