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      05-27-2013, 08:52 PM   #17
phx08's Avatar

Drives: MKV Jetta
Join Date: Sep 2006
Location: PA

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Originally Posted by dwalls90 View Post
1.) How did you arrive at that Gross Capitalized Cost of $43,000? Is that just the invoice price for the respective MSRP of $46,000?
1) my calculation was from a negotiated price of $42,075.00 + $925 acq fee (highest dealers are allowed to mark up). Please note that if you go for $500 over invoice please drop that price by $325 to shoot for that benchmark price.

- ANOTHER avenue is to stay at that 2% above invoice and advise that they can add all the fees that they want but everything out the door should not go above that price. That way you waste no time with looking at fees that are being charged (of course skim over them though). Both approaches reach the same end goal. <---I personally don't feel comfortable with this approach but others have done it and its very effective. I've also heard people getting a $500 over invoice deal and getting hosed on fees, etc.

Originally Posted by dwalls90 View Post
2.) How did you arrive at that residual amount of $29,802? Isn't MF about .62? I think the current calc shows a MF of about .80?
2) I think certain terms may be being mixed up here…the MF is where the “rent charge” comes into play (not the residual), essentially what you are paying to BMWFS for them letting you lease the car. The residual currently for a 328i is at 10,000 miles 65% (when I priced this out the MSRP came to $45,850.00 excluding the destination charge – 65% is $29,802)

Originally Posted by dwalls90 View Post
3.) What is rent charge? How is that calculated? I'm sure it's some factor depending on miles per year. Are there charts for this?
3) Rent charge is the total “finance charge” on the lease…equivalent to the interest you would be paying if you financed the car. It is calculated as follows “(Adjusted Cap Cost+Residual Value) * Money Factor * Lease term”. Miles per year is a factor as the residual value comes into play when calculating the rent charge. Say if you wanted 15,000/yr, that would change the residual percentage to return that changes your residual value component of the rent charge calculation shown in the beginning of this paragraph.

These numbers aren’t 100% accurate to what they will be in a real world situation, but it certainly gives you an idea of what to expect...

I hope this helps

Last edited by phx08; 05-27-2013 at 10:26 PM.