katheikia

My 550 lease details. Does this look right?

jet black
Cold weather package
Premium sound
Sport package
Comfort seats
Active steering
Comfort access
Rear electric sunshade
Naivigation
heads up display
M-aero kit

Total price: $70,435.00
Money Factor .00260
36 mo/ 10,000 mi yr
$5000.00 Total cash down
$1019.62 per mo.

I have tried to use the calculators in the other posts, but i cant seem to figuire out.

das

Use the calculator here:

http://leaseguide.com/calc.htm

I get $923.73 plus tax. So either your sales tax is 10%, or you're missing a few fees (acquisition fee, etc.)

stream

I posted a lease calc. spreadsheet in this post--you just need to input the assumptions in the red cells in the upper left:
http://forums.e60.net/index.php?showtopic=17438

katheikia

I forgot to add 1690.00 tax, 261.00 registration for three years, 625.00 acq fee, and 75.00 doc fee. Given all these numbers, does this look like a good deal? Or could I have done better? I dont have excel on my computer for the calculator.

Thanks for your help!!!

PS. The aero kit ($3285.00) is included in the price, and only $400.00 of it residualizes. So then these are the #s

Total price: $70,435.00 (including aero kit $3285.00)
Money Factor .00260
$1690.00 Tax
$261.00 gov fees
$625.00 acq fee
36 mo/ 10,000 mi yr
$5000.00 Total cash down
$1019.62 per mo.

Would it be the aero kit throwing the #s off, only $400.00 of it residualizes?

das

Yes, that looks like as good a deal as you could have gotten...the problem is that the lease rate itself (and the residual) just aren't as good on the 550i as it is on other E60 models. 0.00260 is indeed the base rate, so your dealer isn't padding it, but for comparison the base rate on the 530 is 0.00140, and some models even have a 0.00100 rate. You can multiply the rate by 2400 to get the equivalent APR equivalent.

It's a great car, and if you're happy being around $1K/month on the lease, you probably couldn't have done better. One option you might consider if you have a lot of cash available is putting down more security deposits. You can put down up to 5 security deposits, and each one lowers your money factor by 0.00010, so you could potentially get it down to 0.00210. That would lower your payment by about $55/mo, meaning you could get a $2000 return over 3 years on a $5000 "investment" (5 security deposits). That's a pretty good rate of return, but only if you have another $5000 laying around and available for security deposits (which you of course get back at the end of the lease).

One really dumb thing is I don't know why they don't give you depreciation on 100% of the M Aero Kit...I mean, the thing stays on the car, and it's how much THEY are charging for it. Of course, if they let you order it from the factory like you can in other markets, then this would be a non-issue. I'm surprised they don't at LEAST do the cost of the kit minus paint and installation. Oh well. They don't even residualize OEM wheels other than ones you can order from the factory...

katheikia

Yes, that looks like as good a deal as you could have gotten...the problem is that the lease rate itself (and the residual) just aren't as good on the 550i as it is on other E60 models. 0.00260 is indeed the base rate, so your dealer isn't padding it, but for comparison the base rate on the 530 is 0.00140, and some models even have a 0.00100 rate. You can multiply the rate by 2400 to get the equivalent APR equivalent.

It's a great car, and if you're happy being around $1K/month on the lease, you probably couldn't have done better. One option you might consider if you have a lot of cash available is putting down more security deposits. You can put down up to 5 security deposits, and each one lowers your money factor by 0.00010, so you could potentially get it down to 0.00210. That would lower your payment by about $55/mo, meaning you could get a $2000 return over 3 years on a $5000 "investment" (5 security deposits). That's a pretty good rate of return, but only if you have another $5000 laying around and available for security deposits (which you of course get back at the end of the lease).

One really dumb thing is I don't know why they don't give you depreciation on 100% of the M Aero Kit...I mean, the thing stays on the car, and it's how much THEY are charging for it. Of course, if they let you order it from the factory like you can in other markets, then this would be a non-issue. I'm surprised they don't at LEAST do the cost of the kit minus paint and installation. Oh well. They don't even residualize OEM wheels other than ones you can order from the factory...
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Thanks for the info

katheikia

Oh by the way, I got the M-Aero kit down to $2461.00. Which is invoice price for parts, and VPC. That changed my mo. payment by $27.00
I couldnt see the reason the dealer should make over $800.00 on this kit, since it is over priced and doesnt residualize well. I just asked and they gave me that price.

almd

I got the M aero kit for 1890 installed. But the dealer says they are now installing locally at dealerships and not at VPC anymore. Does that sound right?
arthur

wulff1

I was told that the aero kit does not residualize at all????
I'm paying invoice (2461.00) for it -

how did they calculate 400.00?

wulff1

wow, that is cheap for the m-aero kit-unless the dealers are giving everyone random prices and
perhaps there is even a double secret wholesale price sheet....