I just have a question about leasing these exec demos or loaners that have some mileage and how I should be factoring this in?
For example, I have a BMW car with the following:
MSRP - 50k
Net Cap - 41k
Mileage - 8k
Residual - 58%
Money Factor - .00134
Lease Term - 36 months
After all my calculation, it comes to about $480 a month, but what do I do with the mileage?? I heard you multiply it by the miles * .2 - but what do you do with that number after? For example, if I started out at 8k and I’m leasing for 15k a year, by the end of my lease I should be returning it at 53k correct? I still don’t understand what I should be "adjusting’ the mileage for.
Thanks in advance everyone.
It is 0.30 or 0.25 with BMW.
Take $ amount and then work out the actual $ residual amount, 58% of 50k in your case. The. Subtract your millage amount from the residual amount.
Then work out the new residual % and plug that into your figures.
For BMW I believe the residual reduction is calculated as
Mileage - 500 then x $0.25
So 8,000-500 =7,500
7,500 x .25 = $1,875 reduction in residual value
@NYL12, That’s correct. But the LeaseHackr calculator doesn’t allow for entering a dollar residual, only a percentage one. So to figure out the impact of the mileage on the residual you need to divide the mileage cost by the MSRP to get a percentage to deduct for the financing company’s residual percentage.
In this case, 1,875 / 50,000 = 3.75% which you would then deduct from 58% residual to get a adjusted residual of 54.25%
Said differently, you’re paying an additional $1,875 over the course of the lease in depreciation costs.
Thanks everyone for your answers. This helps me tremendously.
I built on a excel spreadsheet I got that calculates the change in residual, but don’t know how to attach as a file. Looks like you can only link to a web site.
You just input the mileage and it reduces the residual in the formula. But your way works for the leasehacker calculation. Just an added step.
You can use this sheet:
Just make a copy for yourself. Adjust the cells accordingly if the formula isn’t
(Miles on odo - 500) * $0.25
I am looking for a bmw demo car but qhen I searched any bmw website, they do not indicate demo cars. I can only see pre-owned or certified. If one of them refers demo cars, what is the difference between them.
Can I still have same warranty as a new car? Please explain me what is difference between demo and new for lease. Thank you.
I have 200 to choose from.
They are new cars with miles on them.
Driven either as a loaner car or a company executive.
They get all new car programs and warranty.
This applies to BMW and MINI.
got a list of prices / models?
Would love to see the list myself also!
His list will have one car less… Picked up mine a few hours ago… About to open a new thread detailing all the numbers. Great deal, thanks to Loberant and all I learned in this forum!