If you’re happy with the deal… then why are you waiting to see if it sours?
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Update: Here is the new offer I received.
I feel like the estimated sales tax is high. The monthly payment comes to $611 and the monthly tax is $53. When I multiply $53 by 36 months, I get $1,920. So why is this listed so high? I’m leasing out of California but live in Phoenix. My tax rate should be 8.6%. The monthly tax amount is correct but I’m just not sure how they got to $4,672 from $1,920. Also, I had them removed the Lieu Ta, which is why the monthly is slightly off.
That is PURCHASE sales tax.
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That makes more sense. Do you think that is being calculate into the monthly payment?
Have you gotten the updated may rv/mf/incentives from edmunds and confirmed what the dealer is using for this quote?
I think what’s really confusing me is if the cap cost is $55,139 and the Residual is $37,476. The difference is $17,663. Divide that by the remaining 35 payments and I’m at $504/month before financing and taxes.
Yes. Nothing changed from April to May. Residual is still 59%. Incentives still $1,000 lease cash, $1,000 conquest. MF on Edmunds is .00118 but I’m tier 2 so I got .00140.
What’s so confusing? Next, calculate the rent charge, tax and fees to see if they match the quote.
That sounds more like a dealer marking it up (and using your credit as an excuse to make you not question it) than bmwfs marking it up. I don’t think they do a .0022 mark up for tier 2 (although someone with more knowledge will hopefully chime in)
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I’m okay with that because they threw in a $500 OL code to offset it.
Fees are paid with my $1,742 at signing plus part of the rebate. That’s why the Cap Cost is only reduced by $1,426 (what’s remaining of the 2k in rebates). Meaning Rent Charge and Tax are making up the final $160/month. I’m just not sure how that’s possible with a 8.6% tax and 3.36% annual interest rate.
This will show you how it’s possible.
Thanks! I think it might be in the same ballpark. I didn’t think the finance fees would be over $100/month but it makes sense when you use that formula. In my head I was thinking 3.36% annually of 17k.
When I go to sign the papers later today, they should break this down for me correct?
Stop trying to use the converted interest rate version of the mf.
That’s where I went wrong
I also want to say that I very much appreciate the help and advice.
People grossly misunderstand how that works. It isn’t 3.36% of the lease value, you’re paying interest on the entire vehicle price, just like any other loan.
In this case, your rent charge portion of the monthly payment is roughly $130 /mo
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That and you aren’t financing only $17k.
That makes more sense. Thank you for taking the time to explain.
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