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10202020, 12:22 PM  #1 
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Help me understand numbers on BMW lease agreement?
Hi,
Can someone help me with my questions. For my leases/finance in Canada the numbers were never this complicated. As an example, no where on my lease agreement can I find the agreed upon money factor or interest rate other than the 'rent charge' noted here. Frankly, I wouldn't have cared much but now that I may end up buying it, I'd like to understand where have I overpayed. Please see screenshot below. MSRP was $106,295. Agreed upon pricing was $84,925 ($925 being acquisition fee). I'm in state of California where the tax is 9%. 1. Rent charge is $5,384.75. How do I calculate the interest rate on it? I did a high level calc and it came to around 3.46%. I'm not sure if I did that correct? 2. Does $66,965.85 include sales tax? If i print out my payout document today, it shows sales tax as $0.00 which I'm not sure why. 3. The document shows $9,500 on delivery out of which $7,500 was a rebate (I did pay $2,000 down to cover first month payment, registration etc.). If I was to buyout the car, do I end up losing the $7,500? 4. Continuing with (3) above. If I was to look at my lease payments of $735.85 x 24 + Residual of 66,965.85 gets me to $84,626 (let's round it to $84,925). So where did the $7,500 rebate go? Is that being offset by the "rent charge" of $5,384.75? 5. Capitalized Cost is the agreed upon price. But I feel like if I buy it out, how does the capitalized cost reduction of $7,141.74 completely disappear? Thanks for your help! 
10222020, 08:30 AM  #3  
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No, that was your cash down I'm assuming? Your buyout is the PV of the unpaid balance. Initial balance was 85k, less down payment.
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10222020, 11:51 AM  #4  
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Thank you! Super helpful! Just to confirm, the $66K residual, do you know if that includes sales tax or is it in addition to that? 

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10222020, 12:12 PM  #5 
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I don't think you have to guess and check...there should be a mathematical formula to derive money factor.
I haven't been on leasehackr in a while (their forum there would easily answer all your lease questions) but if i recall correctly: Money Factor = (Rent Charge / # of Months) / (Adj Cap + Residual) So your money factor is 0.00155 Multiply by 2400 to get the interest rate = 3.72% 
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10222020, 12:33 PM  #6  
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You can also go to www.leasehackr.com and enter all of your numbers in to see how the monthly payment is figured out.
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10242020, 10:26 AM  #8 
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10242020, 10:41 AM  #9 
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10242020, 05:48 PM  #10 
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Yes it is for M4 CS and it was those hefty discounts back in July 2019.
I just find US BMW lease agreement number much more complicated the way they are presented compared to Canadian. 
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10252020, 07:23 AM  #11 
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To be honest, relative to other Auto Leasing Companies, BMW's leases are very straightforward. It's all about understanding all of the components, which BMW does a great job of breaking out.

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10252020, 03:25 PM  #12  
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All you need is a sale price, term length, residual % and interest rate. Everything else is useless or redundant.
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10262020, 02:27 PM  #13  
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