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Need help with leasing
I have done a lot of researching through the threads on leasing but I am very confused where to find the factors I need for leasing a 2005 530i via ED. Can someone shed some knowledge on how do I go about calculating what I need to arrive at a final monthly payment or am I being an ignorant not knowing that only the dealer has those numbers.  | | Reply » Need help with leasing |
The key factors are:
1 - Interest or money factor. Whatever the dealer offers, multiply by 2400 to make sense of it in terms of percentage (e.g. money factor = 0.00170 then x2400 = 4.08 % APR)
Under current market conditions, I would look for something between 0.0085 and 0.0017 depending on the vehicle (hot car = higher rate, vice-versa)
2 - Residual; the higher the residual, the better as you pay for the difference between negotiated price and residual. ED is nice because the negotiated price starts at MSRP minus 7%. Anything over 60% residual on a 36month 12K miles/year is good. Again, depends on the car...
3 - Interest calculation = negotiated price + residual x money factor
4 - Tax, if applicable, is based on the monthly payment (used amout, which is negotiated price - residual, divided by #months, plus interest)
As far as the negotiated price, the ED MSRP minus the US profit margin (i.e., MSRP - Invoice) should be close to ED invoice. Dealers do need to make a living so be fair; a reasonable offer over the "guestimated" invoice should be acceptable to any honest dealer.
Hope this helps. Good luck!
| | Reply » Need help with leasing |
Very good info, fgomesbr. Your concise points above would make a very good cheat-sheet for those new to the lease negotiation phase.
TVN
| | Reply » Need help with leasing |
Quote: The key factors are:
1 - Interest or money factor. Whatever the dealer offers, multiply by 2400 to make sense of it in terms of percentage (e.g. money factor = 0.00170 then x2400 = 4.08 % APR)
Under current market conditions, I would look for something between 0.0085 and 0.0017 depending on the vehicle (hot car = higher rate, vice-versa)
2 - Residual; the higher the residual, the better as you pay for the difference between negotiated price and residual. ED is nice because the negotiated price starts at MSRP minus 7%. Anything over 60% residual on a 36month 12K miles/year is good. Again, depends on the car...
3 - Interest calculation = negotiated price + residual x money factor
4 - Tax, if applicable, is based on the monthly payment (used amout, which is negotiated price - residual, divided by #months, plus interest)
As far as the negotiated price, the ED MSRP minus the US profit margin (i.e., MSRP - Invoice) should be close to ED invoice. Dealers do need to make a living so be fair; a reasonable offer over the "guestimated" invoice should be acceptable to any honest dealer.
Hope this helps. Good luck! | That is a great amount of helpful information. Thanks
| | Reply » Need help with leasing |
Do you know of any ED dealers in South Florida.
Quote: The key factors are:
1 - Interest or money factor. Whatever the dealer offers, multiply by 2400 to make sense of it in terms of percentage (e.g. money factor = 0.00170 then x2400 = 4.08 % APR)
Under current market conditions, I would look for something between 0.0085 and 0.0017 depending on the vehicle (hot car = higher rate, vice-versa)
2 - Residual; the higher the residual, the better as you pay for the difference between negotiated price and residual. ED is nice because the negotiated price starts at MSRP minus 7%. Anything over 60% residual on a 36month 12K miles/year is good. Again, depends on the car...
3 - Interest calculation = negotiated price + residual x money factor
4 - Tax, if applicable, is based on the monthly payment (used amout, which is negotiated price - residual, divided by #months, plus interest)
As far as the negotiated price, the ED MSRP minus the US profit margin (i.e., MSRP - Invoice) should be close to ED invoice. Dealers do need to make a living so be fair; a reasonable offer over the "guestimated" invoice should be acceptable to any honest dealer.
Hope this helps. Good luck! |
| | Reply » Need help with leasing |
Quote: | Do you know of any ED dealers in South Florida. | I believe yamilrx is using my pal Adrian's BMW (click profile link below) of Nalley BMW is Decatur Georgia. From what I heard, Adrian is making him one hellava deal to pull yamilrx from S. FL to travel out of the FL panhandle for the car.
http://forums.bimmerfest.com/member....poster&t=86365
Once you figured out what you want, it may not be a bad idea for you to give Adrian a call.
cheers,
beewang 
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Need help with leasing