Quote:
Originally Posted by d3l0n
Hey guys... I'm actually interested in leasing for the first time (650i GC.) I don't understand what most of these mean.
36mon/14K
8/13 650i 55%
1/14 650i 55%
Does that mean at the end of 36 mom term you will be paying 55% of the total price?
I think the rate came out to 1400-1500/per month. 1700-1800 for the M6 / per month.
I got a quote back in September.... Almost fully loaded came about to 115-120K.
Anyway, I wasn't sure if there was a way to get better rates than what the dealer told me. Can someone point me in the right direction? This maybe the wrong thread, sorry for that.
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There are two important things you need to know with leasing (ok, there are like 14, but here are the basics)
1. The car will have a residual (that's the percentage of the MSRP that the car will be worth at the end of the lease). So in the comment above, the car will be worth 55% of the MSRP at the end of the lease.
2. There will be a Money Factor (MF). This is the interest rate the dealer is charging you. It is a weird number (like .00130) and the key is to multiply it by 2400 to get your actual interest rate.
Now random crap...
Many options are worthless at trade if you buy a car. That B&O stereo you just dropped $3,700 on? Basically goes to $0 at trade in-time. That cool Tanzanite Blue color you paid $1,950 for? Yours - all yours, cause it does not add to the value.
Except when you lease. In these cases you will get at least x% back on your purchase (you still have to pay finance charges - but that is still better). So if you like to load up your cars, always consider leasing - unless you keep them forever.
For the most part leasing works like this
1. PurchasePrice-Residual. This is the amount you are financing and paying off over X number of years. Sales taxes can play a big part here depending on where you live.
2. Residual - This is the amount you are borrowing with no intention of paying back. So you pay interest on this amount over the period of the lease.
Add #1 and #2 and you have your lease payment. Or just search for a lease calculator.
There are other fees you will be hit with - like a lease acquisition fee (the fee the leasing company charges to initiate the lease (about $925 for a BMW), a lease disposition fee ($350 I think is the going rate) - which is the fee to get rid of your car at the end of the lease.
PS - you got a Gran Coupe to $120K? That's impressive
Edit - the dealer can't play with the residual but they can increase the money factor. That's how they get ya