Autotalent
BMW Garage BMW Meets Register Search Today's Posts Mark Forums Read

Go Back   BMW M3 and BMW M4 Forum > BMW F80 M3 / F82 M4 Forum > F80 M3 / M4 Pricing, Ordering, European Delivery

Post Reply
 
Thread Tools Search this Thread
      10-20-2020, 12:22 PM   #1
itrocks4u
Colonel
United_States
387
Rep
2,150
Posts

Drives: F80, F36, E90
Join Date: Aug 2011
Location: Bay Area

iTrader: (3)

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 over-payed.

Please see screenshot below.

Name:  Screen Shot 2020-10-20 at 10.01.38 AM.png
Views: 430
Size:  1.32 MB

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!
Appreciate 0
      10-22-2020, 07:46 AM   #2
Next Level Auto Brokers
BimmerPost Supporting Vendor
Next Level Auto Brokers's Avatar
United_States
443
Rep
443
Posts


Drives: 2021 X7M50, 2021 M3 on order
Join Date: Apr 2020
Location: NY, NY, CT, PA, MD, VA, DE, FL, CA, Nationwide shipping!

iTrader: (0)

what car is this for?
Appreciate 0
      10-22-2020, 08:30 AM   #3
Maitre_Absolut
Captain
Maitre_Absolut's Avatar
728
Rep
777
Posts

Drives: M3 CS
Join Date: Jun 2018
Location: Toronto

iTrader: (0)

Quote:
Originally Posted by itrocks4u View Post

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?
I get 3.75%. The only way is guess and check.

Quote:
Originally Posted by itrocks4u View Post

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.
You are currently only paying sales tax on the lease payment (depreciation). Balance left to pay on residual.

Quote:
Originally Posted by itrocks4u View Post
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?
Discount is baked in the to the transaction, does not go away.

Quote:
Originally Posted by itrocks4u View Post
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?
No the rebate contributed to how you got from the 106 msrp to 85k sales price.

Quote:
Originally Posted by itrocks4u View Post

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?
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.
__________________
18 M3 CS /// M-Performance
19 Audi SQ5
17 Macan GTS
14 S4 / 13 Q5 / 09 A3 3.2VR6
Appreciate 2
      10-22-2020, 11:51 AM   #4
itrocks4u
Colonel
United_States
387
Rep
2,150
Posts

Drives: F80, F36, E90
Join Date: Aug 2011
Location: Bay Area

iTrader: (3)

Quote:
Originally Posted by Maitre_Absolut View Post
I get 3.75%. The only way is guess and check.



You are currently only paying sales tax on the lease payment (depreciation). Balance left to pay on residual.



Discount is baked in the to the transaction, does not go away.



No the rebate contributed to how you got from the 106 msrp to 85k sales price.



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.

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?
Appreciate 0
      10-22-2020, 12:12 PM   #5
JTK24
Private First Class
94
Rep
194
Posts

Drives: F80
Join Date: Jun 2017
Location: CA

iTrader: (1)

Quote:
Originally Posted by Maitre_Absolut View Post
I get 3.75%. The only way is guess and check.

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%
Appreciate 1
itrocks4u386.50

      10-22-2020, 12:33 PM   #6
DocL
Lieutenant
DocL's Avatar
United_States
636
Rep
429
Posts

Drives: 2018 M3
Join Date: Jan 2019
Location: S Fla

iTrader: (0)

Quote:
Originally Posted by itrocks4u View Post
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?
Residual doesn't include sales tax.

You can also go to www.leasehackr.com and enter all of your numbers in to see how the monthly payment is figured out.
__________________
2018 F80 M3. YMB/BLK. ZCP. Three Pedals.
"Education will never be as expensive as ignorance."

Last edited by DocL; 10-22-2020 at 01:10 PM..
Appreciate 1
      10-24-2020, 10:13 AM   #7
trendy26
Captain
401
Rep
947
Posts

Drives: 2017 F82 M4
Join Date: Nov 2008
Location: Florida

iTrader: (0)

Quote:
Originally Posted by Next Level Auto Brokers View Post
what car is this for?
It's definitely an M4CS....
Appreciate 0
      10-24-2020, 10:26 AM   #8
Next Level Auto Brokers
BimmerPost Supporting Vendor
Next Level Auto Brokers's Avatar
United_States
443
Rep
443
Posts


Drives: 2021 X7M50, 2021 M3 on order
Join Date: Apr 2020
Location: NY, NY, CT, PA, MD, VA, DE, FL, CA, Nationwide shipping!

iTrader: (0)

Quote:
Originally Posted by trendy26 View Post
It's definitely an M4CS....
$7500 rebate wow...is that a canada thing?
Appreciate 0
      10-24-2020, 10:41 AM   #9
trendy26
Captain
401
Rep
947
Posts

Drives: 2017 F82 M4
Join Date: Nov 2008
Location: Florida

iTrader: (0)

Quote:
Originally Posted by Next Level Auto Brokers View Post
Quote:
Originally Posted by trendy26 View Post
It's definitely an M4CS....
$7500 rebate wow...is that a canada thing?
Looks like it was from July 2019, when a bunch of us got M4CS's for around $30K off after trunk money and rebates....
Appreciate 0
      10-24-2020, 05:48 PM   #10
itrocks4u
Colonel
United_States
387
Rep
2,150
Posts

Drives: F80, F36, E90
Join Date: Aug 2011
Location: Bay Area

iTrader: (3)

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.
Appreciate 0
      10-25-2020, 07:23 AM   #11
trendy26
Captain
401
Rep
947
Posts

Drives: 2017 F82 M4
Join Date: Nov 2008
Location: Florida

iTrader: (0)

Quote:
Originally Posted by itrocks4u View Post
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.
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.
Appreciate 0
      10-25-2020, 03:25 PM   #12
Maitre_Absolut
Captain
Maitre_Absolut's Avatar
728
Rep
777
Posts

Drives: M3 CS
Join Date: Jun 2018
Location: Toronto

iTrader: (0)

Quote:
Originally Posted by trendy26 View Post
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.
I get what he means though.

All you need is a sale price, term length, residual % and interest rate. Everything else is useless or redundant.
__________________
18 M3 CS /// M-Performance
19 Audi SQ5
17 Macan GTS
14 S4 / 13 Q5 / 09 A3 3.2VR6
Appreciate 0
      10-26-2020, 02:27 PM   #13
itrocks4u
Colonel
United_States
387
Rep
2,150
Posts

Drives: F80, F36, E90
Join Date: Aug 2011
Location: Bay Area

iTrader: (3)

Quote:
Originally Posted by trendy26 View Post
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.
Quote:
Originally Posted by Maitre_Absolut View Post
I get what he means though.

All you need is a sale price, term length, residual % and interest rate. Everything else is useless or redundant.
For reference here is how Canadian numbers presented. This is an old quote but this has not changed since I bought my first BMW in 2011:

Name:  Screen Shot 2020-10-26 at 12.23.18 PM.png
Views: 241
Size:  503.4 KB
Appreciate 0
Post Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 04:22 AM.




f80post
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2021, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST