About to sign: 2021 BMW x3. black/beige prem, parking, ambient, harman kardon


To get the deal to the numbers they (and the buyer) might want, many times the dealer will make the contract look like the buyer provided more cash at signing than they really did, and they can show this in the capital cost reduction (CCR) field of the contract. Its basically money the dealer is kicking in but on the contract it presents as additional money down.


Thanks for the explanation! Why wouldn’t the dealer show it as pre-incentive discount?

To be honest, I’m not sure. It has happened many many times on my leases however. There must be some reason in the background that they would rather show it as nonexistent CCR. It’s almost like they don’t want the car to appear to have been discounted as much as it actually was.

That said, to avoid any potential issues, when a dealer does do this on a lease I am planning to sign, I usually ask for an email from the sales manager or general manager confirming that no actual down payment cash is due.

They don’t want the actual discount being waved in their face at the next negotiation

1 Like

Yeah, and I also think internally at the dealership may they may have some discount metrics?

1 Like

Yes, they all have various metrics that are evaluated on whether it’s F&I products, selling price, sales closed, etc. All depends on what their motivations are and who’s doing the “motivating” (or accounting gymnastics) :slight_smile:

I am going to post my calculations here for others to check. I’ve managed to match the dealer worksheet down to the nickel. A few comments:

It looks like they marked up the money factor: EDIT: ignore this per new MSD program

  1. $1,452 Rent Charge / 36 = $40.34

  2. Interest Base (Adj/Net Cap Cost of $41,876 + $27,676) of $69,552 / $40.34 = 0.00058

  3. 0.00058 = 0.00082 (Base) + 0.00011 (Markup) - 0.00035 (7 * 0.00005)

The way I’m seeing it is that for the Sales Tax on CCR to be correct (6.5% * 4381.92 = 284.83), the contract is making it seem like he paid 1881.92 in CCR (+ the 2500 taxable rebate to reach 4381.82) as if it were cash, instead of actually paying the acquisition fee and Doc Fee up front (which he could have covered with the same cash and would have actually lowered his upfront taxes/overall lease cost. (by about 100 bucks or so)

Can someone explain to me whether I am reading into this correctly?

I believe what you’re actually seeing here is the new numbers.

.00058 = 0.00086 (Jan Base) - .00028 (7 * 0.00004, the new BMW MF reduction)

Makes sense. Was hard to tell whether he got those numbers pre or post Jan 4 based on thread.

Anytime I see a BMW markup that isn’t .0002 or .0004, I get suspicious of the numbers.

you not the only confused with numbers. now i’m concerned about this purchase. did they freaking charge me a downpayment? sales advisor sent me this originally. i asked what cap cost is. he said fees and incentives in it.! But leasehckr calculator i originally provided was also getting me around the same driveroff+msd. (which is missing certain fees like tage agency, state rental, tire/battery fee, lemon law fee)

It looks like they capitalized a few of the fees (dealer/acq) and then applied a cap cost reduction. No real difference vs not capitalizing them and itemizing them instead.

Short of any frustrations over them not listening when you said $0 down, what is your concern?


I did not mean to confuse. As Matt said, they capitalized the Doc and Acquisition fee, which doesn’t affect your deal any substantial amount.

In any case, at 11.5% off, base MF, and Max MSD, you did a great job for a FL dealer without a broker. Welcome to the X3 club, I know you’ll love the car.

yeah i fought pretty hard and they agreed to the deal on dec 31… 30 mins before dealership closed. that why the numbers werent super clear.

last time i waited on dealership to get back to me to finalize the numbers (acq fee was not capitalized), they sold the car to someone else. that was the exact spec i wanted in a car too.

car hunting was painful this time around. i was first looking to purchase a preowed 2020. dealer sales manager were claiming to be busy and wouldnt come back with number the same day. by the time they came back, the car would get sold. 3 great deals i lost because of it.

This is another reason that I prefer the approach of sending them an offer and saying “if you agree to my numbers, I’ll be there in an hour to sign.” Puts the urgency on them to respond, there’s no need for back and forths, and you’re never waiting for numbers to analyze.


thats what i did. but the sales manager could not figure how to put the acq fee as upfront.

his respond was being a jerky though.

“This is the deal, I think it was just a matter of where the money went but non-the-less this is what the payments will be with that down payment.”