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      05-22-2013, 12:35 PM   #1
openwheelracing
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Math Question for all you math gurus

Please enlighten me and calculate the money factor and residual value:

CAP Cost reduction: $2.500.00
First monthly payment $377.85
Initial license fee: $345.00
Sales/Use Tax: $3.49
Sales Tax on CAP Cost Reduction: $193.75
Documentation fee: $45.00
California Tire fee: $7.00
Total Amount due at lease signing: $3472.09

Gross Captalized Cost: $38,688.00
CAP cost reduction: $2.500.00
Adjusted Cap Cost: $36,188.00
Residual Value: $30,121.75
Depreciation and any amortized amount: $6,066.25
Rent charge: $3,401.84
Monthly payment: $350.67+$27.18tax=$377.85
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      05-22-2013, 01:23 PM   #2
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On it...will have in a few minutes.


Either way...I got 0.00191 (4.56% Equivalent APR) as your money factor that is being "charged"...

Last edited by phx08; 05-22-2013 at 01:49 PM.
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      05-22-2013, 01:38 PM   #3
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It is a 27 month lease with .0019 MF.
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      05-22-2013, 01:49 PM   #4
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Quote:
Originally Posted by analogue View Post
It is a 27 month lease with .0019 MF.
This
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      05-22-2013, 01:49 PM   #5
openwheelracing
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what is the equation here for MF?
What is the equation for residual %?

It is a 27 month lease from 2011. So I am trying to educate myself before signing again.
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      05-22-2013, 01:52 PM   #6
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These are the manual steps into determining your payment...ghetto way is to plug numbers in to see if they match...holding all other variables constant.

Code:
Gross Captilized Cost [MINUS] Cap Cost Reduction [EQUALS] Adjusted Cap cost 

Adjusted cap cost (from above)[MINUS] Residual Value 
[EQUALS] Depreciation and any amortized amounts 

Depreciation (from above) [PLUS] rent charge 
(adjusted cap cost [PLUS] residual value)*money factor*lease term) 
[EQUALS] Total of base monthly payments (depreciation+rent charge)

Base monthly payment (from above) [DIVIDE] #months in lease term 
[EQUALS] Base monthly payment

Base monthly payment (from above)[PLUS] sales tax 
[EQUALS] Total monthly payment

* means multiply...
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      05-22-2013, 02:39 PM   #7
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Quote:
Originally Posted by phx08 View Post
These are the manual steps into determining your payment...ghetto way is to plug numbers in to see if they match...holding all other variables constant.

Code:
Gross Captilized Cost [MINUS] Cap Cost Reduction [EQUALS] Adjusted Cap cost 

Adjusted cap cost (from above)[MINUS] Residual Value 
[EQUALS] Depreciation and any amortized amounts 

Depreciation (from above) [PLUS] rent charge 
(adjusted cap cost [PLUS] residual value)*money factor*lease term) 
[EQUALS] Total of base monthly payments (depreciation+rent charge)

Base monthly payment (from above) [DIVIDE] #months in lease term 
[EQUALS] Base monthly payment

Base monthly payment (from above)[PLUS] sales tax 
[EQUALS] Total monthly payment

* means multiply...
PHX08 you seem to know a lot about lease calcs. Is there a list of where I can locate MFs? I have a May ordered 328i (2013) and am trying to reverse calculate my numbers based on payment.
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      05-22-2013, 02:56 PM   #8
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Try looking at your paperwork to see if it's listed on there. However, by law, it is not compulsory for dealerships to list that anywhere on your paperwork. But maybe they did list it.

This is why its very important to know the calculations yourself to spot any "fudging" with the numbers and to reverse the calculations to find out what you need.
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      05-22-2013, 03:05 PM   #9
openwheelracing
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I think the current MF for 3-series is 0.00127 (or maybe 0.00129?). Is it possible to get this MF without dealership adding to it? Does the same MF apply to ED? or does ED have higher MF?

I remember when I signed the lease back in 2011, dealer told me that I received the best MF from BMWFS, and they also lowered the MF as a customer loyalty program, but the dealer added the same amount. The reason, I quote, "because they always do and normal practice". So I signed and drove around Europe and was happy. This time I want to make sure I don't get my @$$ raped.

btw thank you for the formulas. I figured it out. My MF seems a bit high...
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      05-22-2013, 04:47 PM   #10
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Quote:
Originally Posted by openwheelracing View Post
I think the current MF for 3-series is 0.00127 (or maybe 0.00129?). Is it possible to get this MF without dealership adding to it? Does the same MF apply to ED? or does ED have higher MF?

I remember when I signed the lease back in 2011, dealer told me that I received the best MF from BMWFS, and they also lowered the MF as a customer loyalty program, but the dealer added the same amount. The reason, I quote, "because they always do and normal practice". So I signed and drove around Europe and was happy. This time I want to make sure I don't get my @$$ raped.

btw thank you for the formulas. I figured it out. My MF seems a bit high...
Current MF is 0.00127 (that's the lowest they can offer without you reducing it with Sec. Deposits) (But they can mark it up by up to 0.0004), when you do ED, you add an ED adder of 0.0003 to cover the 2nd payment. So with ED the current MF would be 0.00157
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      05-23-2013, 02:44 PM   #11
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Do dealerships raise the MF to make more money? I always was under the assumption that it's your credit and the banks, but it seems like the dealers play with it
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      05-23-2013, 03:13 PM   #12
openwheelracing
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so the best MF I can get is 0.00157 for ED, and dealer could potentially increase it to 0.00197.

What are the chances the dealer would simply give me 0.00157?
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