BMW X5 Lease Calc Discrepancy...Help resolve ~$1,600 delta


First off, thank you to all the dedicated hackrs on this forum, you have been extremely helpful learning the finer points of leasing vehicles.
So I worked up my deal and negotiated a verbal agreement with the dealer on a vehicle. I calculated in Excel then compared to the Hackr Calculator which come out fairly close to one another. Then I compare to the dealer’s worksheet and we are off by $1,600 in favor of the dealer. Rather than go through the details, the salesman sent me his worksheet from the ‘system’. It appears to be how they are handling the loyalty and cash incentives. What was agreed to was 12% discount + $1,500 in incentives ($1k loyalty & $500 lease credit). Then we have the two $750 lease credits to be applied post deal. What is your expert opinion?

MF is marked up to start with. Also, gross cap cost suggests you’re at 9% pre-incentive, not 12% (Maybe they’re including all the fees there though). They appear to be applying $2250 in rebates though, not $1750.

Have you verified what MF the dealer is using? Pre-incentive discount and incentives are only 2 pieces of the puzzle, MF is the 3rd.

If you change the MF in your calculator to .00158 (the max a dealer can mark it up this month) the payment jumps to $876, much closer to the dealer’s sheet…

Good question, we agreed to no mark-up on the MF and should be 0.00118.


to verify mf: MF = (rent charge)/(adj cap cost + residual) = 125.59/(66834.13+39596.30)= .00118… which means I screwed up that part. I wonder what I fat fingered.

9% pre-incentive, .00118 MF being charged, $2250 in rebates applied up front ($1000 loyalty incentive, $500 lease credit, $750 payment credit)

Can you clarify what was agreed as far as the $750 rebates?

How I thought it was applied was post deal, I would receive two $750 credits toward my first two payments. This would not be applied to the deal as it is through BMW Financial Services. At least that is how I thought it worked, with the dealer not able to apply this in their deal worksheet.

They definitely appear to be applying at least one of them. On their work sheet, they show an initial payment of $6250.50 with $4000.50 in cash due at sale. The balance of that is $2250, which would make sense for $1500+$750.

Thank you guys for the quick feedback, it appears to come down to the selling price pre-incentives. I will have that discussion with them tomorrow. I will let you know how I make out.

It’s certainly worth clarifying. I’m always hesitant to jump to conclusions about things not adding up being malicious vs miscommunication.

I’d ask for clarification on the discount value and how the 2 $750 credits are being applied.

Hi Guys,
We were able to overcome the difference and landed on the deal that I thought we originally agreed to and picked the vehicle up Monday. Ended up with 12% off MSRP before incentives then took advantage of the loyalty, lease cash and two payment credits of $750/ea. Thank you again for your support to ensure I was clear with the lease structure.


do you mind sharing which dealer you worked with? I’m also in NJ looking for a similar deal. Would love to get you referral $ too if you connect me with your salesperson

Nice job. 12% pre-incentive on a new car is solid. Please be sure to post the final numbers to help others in the future.