BMW X3 lease #NJ #BMW #X3

[Mr.Red]

I am in the market to lease a BMW X3 (NJ area). I am trying to understand the below details as marketed on the BMW website for lease offer on X3. Any help will be appreciated.

“Monthly lease payments of $459 per month for 36 months is based on an adjusted capitalized cost of $40,670 (MSRP of $47,235, including destination and handling fee of $995, less $4,015 capitalized cost reduction, $0 security deposit and suggested dealer contribution of $1,550 and $1,000 Lease Credit). Cash due at signing includes $4,015 capitalized cost reduction, $459 first month’s payment, $925 acquisition fee and $0 security deposit. Lessee responsible for insurance during the lease term, excess wear and tear as defined in the lease contract, $0.25/mile over 30,000 miles and a disposition fee of $350 at lease end. Tax, title, license, registration and dealer fees are additional fees due at signing. Advertised payment does not include applicable taxes. Purchase option at lease end, excluding tax, title and government fees, is $26,452.”

What is capitalized cost reduction, dealer contribution, Lease Credit? What is the additional cost that I can expect and how much - Tax, title, license, registration and dealer fees, acquisition fee, disposition fee? Is purchase option price the residual value?

[mllcb42]

The best place to start is

Leasing 101 — EDITORIAL | LEASEHACKR

Please read links in there such as “how to calculate payments” and other helpful articles.

It might seem like a lot but TBH there are fewer <60 minute exercises which will save you so much time, money and anxiety over your driving lifetime.

It may also save you (after your negotiations with LH input) inside the finance office where no one can from the internet can really help you.

Remember, it’s almost impossible to reverse-engineer the math starting from the output (monthly payment) and figure out if it’s a good deal. Start at the beginning.

The quick run down of these numbers is that they’re asking for $5400 due at sale, before tax, title, license, registration, and dealer fees. Expect those to be somewhere in the $2500-3000 range here, so this is really more like $8000-8500 due at sale.