Thanks for the email. I’ve only ever dealt with Rallye and they have usually given me great deals but since I live in oyster bay now wanted to see what they offered. I’m hoping I can bring them under 500 if not I might look at the x5 which looks like they are having huge incentives for their plug in
I was in the dealership today looking for a deal on a X3. Demo vehicle was discounted to 35k, MSRP of 41k. The money factor is at 0.0015, the residual is at 64% for 10k miles 36 months. Residual value was 26,xxx which gave me a depreciation of around 9k in 3 years. Now that would put me right about 300$ a month without down not counting “rent fee” The dealership told me rent fee is $3600 for 3 years which in return got the payment to $2000 (389 cap cost reduction, rest of it was for fees) and 375$ tax included. This seems high for a 35k car that will be worth 26k in 3 years. Any inputs on this? The “rent fee” on my Q50 is only 460$ and this dealership is charging me $3600 for this X3 which is a cheaper car with less depreciation. Any input would be appreciated.
Z[quote=“GeorgeA, post:145, topic:6490”]
The dealership told me rent fee is $3600
[/quote]
You know the MF, do the math instead of relying on their quote.
From my understanding the MF of 0.0015 is multiplied by 2400 which gives me 3.6%. Do I count this interest on the full price of the vehicle (35K) or just the amount its depreciating for (amount my loan will technically be 9k).
You need to look up how to calculate a lease (its clear you don’t understand the math behind it). It was an article on the main page.
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Thanks for the help! It was a simple question. I understand cap cost, residual and MF. I just wanted to know if that is applied to the full price of the vehicle or just the depreciation (loan) amount.
Neither. You should read the basics of leasing and how to manually calculate the payments.
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Sarcasm will not get you far with people that are trying to help you. As Jon pointed out it’s neither.
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Aside from above poster not reading the FAQ before posting, I am not understanding why the MF is applied to CAP+Residual as opposed to just the deprieciation amount, just looking for the reason behind the formula.
Thanks.
The “secret” lease payment formula described below is used by dealers and lease financing companies, who would prefer that you not know about it. Even federal leasing regulations do not require that dealers and leasing companies actually disclose how your payment is calculated. The calculation doesn’t appear anywhere on a car lease contract form. There is no way to “check the math” unless you know the formula or have a business calculator.
Good read. Makes you think how much extra they (banks) are pocketing by adding MF to one of the other components (residual or depreciation).