Okay, so I’ve been working a deal on an X5 for a bit now, and this is about the best selling price I’ve been able to manage so far. I’ve been using the calculator and I’ve been getting a little north of $500. Even using their inputs I get about $587, which is nothing close to the $731 they have (I may have to do a 36 for slightly lower payments). It looks like they folded the taxes into the adjusted capital cost, which increases the depreciation and therefore base payments. I called them out, inquiring why that’s the case, but thought I’d post here as well. Let me know if something is fishy… which there already seems like there is.
I’m getting a pre-tax payment of $566.34. Based on the taxes in the quote divided by 24 monthly payments, I’d add $131.96 in taxes per month ($3167.82/24 Payments). That should be a monthly payment of $698.30. It appears they’re hiding fees somewhere, or in fact inflating the cap.
Also, if you move to 36 month term, you drop residual 2%. For that I get a pre-tax payment of $457.85. - EDIT: Corrected in post below this residual is incorrect.
Yup. I see what you’re doing.
I thought residual would be more like 58% for a 36 month, plus a bit less adjusting for mileage. No?
Ahh, yes, it would be 58% for 36/10K. My bad. It’s 59% for 36/7.5K. Not sure why I was figuring 62% for 36/10K. Apologies.
That would make your pre-tax payment in 36 month term $525.07 I believe.
No big. That would have been clutch. Appreciate the analysis.
Two things to ask about… 1. Where are the hidden fees (because the math is incorrect) and 2. Are MSD’s available to decrease the MF?
The rent charge on this one, along with the taxes, are what kills the deal imo. If you can get the MF down to .00075 it would be a major impact. Your 36 mos pre-tax would be $457 and change.
Residual is adjusted for mileage down to $40,079.05 or 62.63% in this case due to miles. I’m getting pretty close to their numbers using the base money factor of 0.00152. i.e. I’m at $595/mo + taxes with first at signing. If taxes are the $131.96/mo total payment is $726.96.
It does seem like the net cap cost should be showing $51,026.70 though in the calculator but that is the net cap cost to get to their payments. Someone else will be able to chime in as well but everything looks pretty close.
I’m not familiar with MD sales tax, is it on Sales Price, Net Cap? It’s 6% and $3167.82 doesn’t calculate for either scenario… For example, I’m getting $3251.67 off Net Cap. So, that doesn’t add up either.
Wouldn’t be doing MSDs and MF is at base. Lame.
My numbers match @cmacfar’s and the dealer’s. Mostly. I agree it is showing the cap cost in a weird way in the lease worksheet, but they pencil out correctly. Have to make sure you’re using an effective residual of 62.628% on a 24 month lease to account for the mileage reduction.
Looks like you’re in a state that taxes the sale price of the car at 6%. That hurts, no matter how you slice it.
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I’m a DC resident – so 10% should be assessed on monthly. Here is newest version after I called BS – Cap fees magically reduced. Adjusted cap cost so magically down as well. No explanation. Better, but still not great. I’ll still need to grind down some more to get this into the $500s, sub-500 with a trade-in.
Ahh, yeah. I have a few friends in DC and do not envy your taxes.
At least you’re getting somewhere now. Seeing as it’s a loner and over 4K miles, I think @cmacfar and @28firefighter are correct. I didn’t take into account the change in residual. Unfortunately the X5 MF isn’t very friendly, nor are DC taxes. Hope you can get a bit more out of it!
Yeah. I’ll keep grinding. The taxes are not nice.
I’ve seen many BMW loaners go for about 20% discount. You’re at just under 18% now, so they may wiggle some more. Incentives on 2017’s go away on Wednesday, so you’re in prime position to make a deal. Good luck!
I walked into a dealer there for a Loaner X5- The salesman told me it should be about 900-950
I told them it sounds good, so he came back with $956
With a 10% state tax rate, I wouldn’t cap the taxes or fees. In the case of the cap tax, you are going to pay double tax.
Agreed. I had them adjust to not cap taxes. Not really liking how they are doing things. Just got another version where they messed with the adjusted capital cost.
It’s an SUV/SAV market right now. Easy to get 20% on 3 series. Super hard on the X5s.