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BMW 5-Series Lease Questions

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    hdowarhdowar Member Posts: 5
    edited June 2011
    Hi Leasing Experts!
    I am planning to lease a 535i well-equipped, with Nevi, Premium Package, etc.
    I went into a dealership today. The quote is like this:
    MSRP: 61000
    Sale Price: 55000
    Rate: 0.00195
    Term: 36 for 10k/year
    Residual value: 29000 (they cut the msrp, but didn't reflected on the residual value)
    Down: 0
    Monthly: 785 + tax = 850

    Fixed residual value on 535i is 59% for 10k, 58% for 12k, and 56% for 15k.
    I kinda calculate it, my actual residual value is only 48%, (785*36/55000) (is that a ripoff?)

    Isn't it suppose to be 55000(sales price)*41%(value i am paying)/36= around 630 a month, say after MF, 670?

    785 vs 670, that's $100 differences! what's wrong in my calculation? Thank you!
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    nlezzonlezzo Member Posts: 7
    Hey I just picked up my new baby 535xi 59000 msrp 36 month 10k miles .... 3100 due out of pocket......prem 1 package nav heated seats iPod, sat radio for a monthly payment 675
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    hdowarhdowar Member Posts: 5
    3100 is just down payment? or it includes 1 month payment, acquisition, and registration? so your payment is 675+tax?
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    hdowarhdowar Member Posts: 5
    The bmwusa.com posted 535i for 629/month for 36 months, how is that possible base on:
    BMW 535i MSRP or SalePrice of $54675, RV$32258 59%, Total Lease payments $22644

    The total payment $22644????!!!! That's basically 0% APR or 0 MF? They are giving out this special with no interest rate?
    Are they falsely advertising it or it's a special rate that dealership still honors it?
    What am I missing here? Can somebody tell me please? It all looks very nice on the website, but I think there's a trap, right? Thank you!
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    rocky725rocky725 Member Posts: 30
    edited June 2011
    The residual value is based on MSRP regardless of the negotiated sale price. I could be wrong but the residual percentage is set by the bank (in this case bmw financial). That's typically not one of the variables that gets negotiated. Are any of the "fees" being rolled into the lease? I don't follow your math but if the $55,000 "sale price" includes all capitalized costs then the monthly payment of $785 is wrong (using the other parameters provided in your post). More likely the sale price is actually higher than quoted. Either way, $850 per month including taxes is a pretty bad deal.
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    lewisafeinlewisafein Member Posts: 2
    Looking at a brand new 535i at Beverly Hills BMW. Heated seats, navigation and satellite radio. Zero down. Just drive-off costs. 36 months, 15,000 miles per year. Now, what's a fair/good monthly payment? I'm currently driving a Mercedes C350 at $626 per month: 36 months, 15,000 miles per year. Your help is much appreciated. Thank you
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    robfloridagoldrobfloridagold Member Posts: 15
    What's the out of pocket at signing?
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    lewisafeinlewisafein Member Posts: 2
    I don't know the out of pocket. 36 months, 15,000 miles per year. Just drive-off costs. What's a good ballpark range for monthly payments
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    caveman78733caveman78733 Member Posts: 1
    Hi Car_man and others:

    A first timer here - thanks to you all on previous postings and I learned.

    I was given a lease term last Friday (June 24th, 2011) for a 535. Below is the detail. Please let me know if this is a bad deal or not

    MSRP: 60,529
    Selling Price: 56,166
    Deal-add-on Window Tint: 299
    Total Sales Price: 56,465
    Term: 36-month, 12K miles per year
    Residual: 58% (35,162)
    MF: 0.0025 (6%)
    Sales Tax: 3,529 (6.25% - Sales manager says Texas requires to pay tax on "Total Sales Price".
    True? Not the price on what you lease for those 3 years)
    VIT Tax: 115
    Bank Fee: 925
    Total Cap Cost: 61,034

    Now, here comes the offer:

    Monthly: $959
    Cash on Delivery: 1st month 959 + Title/Registration fee = $1,198

    In the above equations, variables are actually MF and Residual. Are both numbers correct per your knowledge? How could they charge 6% when intersts still so low?

    Another story from sales manager is that I should pay interests in 3 years for MSRP, not on the total sales price, which doesn't make any sense to me either. What do you think?

    I rejected it and walked away. Yesterday, they came back with this offer:

    Monthly: $730
    36-month but on 10K miles per year!!!
    Tax on cap red: $6181 (may be a $2,100 down?)
    Title/Regis fee etc = unchanges
    Cash due on lease: $7,151

    I have asked sales to give me break-downs like previous one but it is a "WoW" up front $7,151 now and becomes 10K miles. I don't know whether the new offer actually gets worse.

    Please let me know what you think. Thanks a lot for your help.

    Cheers
    CaveMan from Texas
    PS: Sales told me I shouldn't trust this forum because "they are out of state", "different external leasing company". Very funny when you heard that :-).
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    hdowarhdowar Member Posts: 5
    The out of pocket at signing is 1650. includes 1st month payment, registration, and acquisition I believe. It's at Savage BMW!
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    x021627x021627 Member Posts: 152
    edited June 2011
    That's about close to the deal I got in Dec 2010. Term is 36mos/36k mi..I'm paying $679. Same options plus fold down rear seat..enjoy it!
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    varick222varick222 Member Posts: 6
    I just leased a New BMW and found paperwork in the car showing that the BMW dealer had body work done on the car equal to 15% of the cars MSRP. My plan had been to potentially buy this car at the end of the lease and I never would have entered into the lease if I knew that the car had paint work done to it. I have not yet spoken to the dealer but am curious if anyone knows what my rights are. This was done with a NJ dealer.
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    dholleydholley Member Posts: 3
    I am actually pending a deal right now with these same parameters. Working with a BMW dealer in Orange County. I have yet to determine what the "best" MF is for tier 1 (750-800 fico) should be. I was quoted a monthly payment of $868 yesterday, which I thought was too high. Considering they quoted me a payment of $937 (3.9%) if I chose to purchase the car.
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    dholleydholley Member Posts: 3
    Hi Car Man...
    Can you please tell me the MF and the residual on the 2011 535i for.... 36 months / 15k miles ? I think I understand how to calculate that information into an "interest rate" after reading some of the comments on this site. I take the MF and multiply it by 2400...correct?

    Thanks for your help...
    Diane
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi caveman78733. Let me begin by saying that the money factor that you were quoted is too high. BMW Financial Services' current buy rate lease money factor for this car is .00195 for non-returning and .00165 for returning customers. It looks as though the dealer that you are working with is marking your car's factor up to add additional hidden, back-end profit to your deal. BMW dealers are notorious for marking up rates, but consumers who know what the buy rate should be for the model they want are often able to get dealers to use it to calculate their payment.

    Having said that, the selling price that you were quoted for this car looks good. It's actually probably fairly close to dealer invoice.

    You're right $7,000 is way too much money to pay at lease signing. I usually advise consumers to pay as little as possible up front when leasing. Consumers who put a lot of money down risk losing part or all of it if their vehicle is totaled in an accident or stolen and never recovered. Even though it means that your monthly payment will be a little higher, it's always safer to go with a zero down lease.

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi Diane. Through July 5th, BMW Financial Services' buy rate lease money factor and residual value for a 36 month lease of a 2011 535i with 15,000 miles per year are .00195 and 56%, respectively for consumers who qualify for its top credit tiers.

    The money factor for loyal customers is .00030 lower.

    You are correct about how to convert the money factor into an approximate money factor equivalent.

    Car_man
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    x021627x021627 Member Posts: 152
    They didn't show you or tell you about the damage? I thought they had to. Have you spoken to your CA? Which dealership in NJ.. I live in NJ.
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    mrj119mrj119 Member Posts: 1
    Hosts,

    Can you please give me lease rates for July 2011 on a 2011 535i?

    Also here is the lease deal I'm getting. 36month, 10k mi/month MSRP on a 535i with prem1, prem2 is 57675, selling price is 52235, about $800 below invoice because of the $1730 nav credit.

    Dealer is quoting me $743/month, but with 3% tax in VA, 59% residual, and 0.002 MF (from last month), I should be about $723/month

    Is this a good deal? Can I negotiate lower, because this is by far the best selling price I have gotten. Thanks.
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    I'd be happy to help you out, mrj119.

    BMW Financial Services' July buy rate lease money factor and residual value for a 36 month lease of a 2011 535i with 10,000 miles per year are .00195 and 59%, respectively for consumers who qualify for its top credit tiers.

    The money factor is .00030 lower for loyal customers.

    The selling price that you were quoted looks reasonable to me.

    Car_man
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    uclambauclamba Member Posts: 1
    Car_Man,

    Do you have the July residual % and MF for a 2011 528i , 12k/yr for 36 months and also 10k/yr for 36mo?

    Many Thanks!

    -Dan
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Here you go Dan. BMW Financial Services' July buy rate lease money factor and residual value for a 36 month lease of a 2011 528i with 12,000 miles per year are .00195 and 57%, respectively for consumers who qualify for its top credit tiers.

    The residual value for a lease with only 10,000 miles per year is 1% higher.

    The money factor is .00030 lower for loyal customers.

    Car_man
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    chadmandelchadmandel Member Posts: 11
    I was looking at a Roadfly forum and it's giving different July MF's and residuals on the 550i xDrive. That source is giving 59% and 0.00175 for 36 months and 15K miles/year. I assume loyalty of .0003 can also be taken off. That differs from .00195 and 56% which was previously provided. Please clarify. Thanks.

    http://forum.roadfly.com/threads/13173671-BMW-Auto-Lease-Programs-July-2011
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    varick222varick222 Member Posts: 6
    They did not show it to me or tell me about it. I believe they are required to have a written disclosure for any damage over 1% of MSRP but in this case it was over 15%. The sales mgr said they meant to tell me about it but forgot to. Car came from JMK BMW. The situation became unpleasant when I told them I found out about the damage and the salesman then called me and said I had to bring the car back, that his manager wanted it returned and they would give my money back. I mentioned to him that it wasn't that simple since I had just sold my car after taking delivery of this one. His response was that "he was going to have to give up his $ 200 commission on the car but that I don't hear him complaining about that". Apparently that was supposed to appease me.
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    chadmandelchadmandel Member Posts: 11
    I forgot to mention that the purchase is in Des Moines. Are the numbers different for different regions of the country?
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    clihnclihn Member Posts: 1
    I'm currently negotiating my first lease, always purchased, on a 528i. It has Premium package plus satellite. They are marking the car down to $45,000. Not sure of the rate or residual value, but with $1,500 down and about $3,000 in fees (including first months payment).

    With that a 36 month lease with 15,000 annual mile allowance is $629/month, which is $689/month after taxes.

    Is this a good deal?

    Thank all!!!
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    kjpwkjpw Member Posts: 1
    We have recently decided to lease a BMW 535i. We would have to order the car to get the exact options we desire. However, the dealership has one that is similar, but it is being used as the demo car and has 700 miles on it at this time. The MSRP is 71,857. Invoice is 64,775. What would be a fair price considering it has been used as the demo car?

    Thanks,

    KJPW
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    tdo200tdo200 Member Posts: 1
    Do you have these numbers for a 550i. I would like to lease one in the next few days. In addition to residuals and MF, what is the best price that I should be able to get on the capital cost. in other words how much off of sticker should I look for.

    Thanks.
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    johninDCjohninDC Member Posts: 8
    edited July 2011
    clihn - you need to push the dealer to get the numbers so we can help you.
    Get the following:
    MSRP
    Total capitalized cost (price they are selling the car for including fees - give us the breakdown)
    Breakdown of your up front cash/out of pockets
    Residual value
    Money Factor
    Taxes, tages, registration

    Get this and we can help you.
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    I certainly do, tdo200. BMW Financial Services' July buy rate lease money factor and residual value for a 36 month lease of a 2011 550i with 15,000 miles per year are .00195 and 59%, respectively for consumers who qualify for its top credit tiers.

    This car's money factor is .00030 lower for loyal customers.

    I'm not personally all that familiar with what the market is like for the 550i right now, but if I was in the market for one I personally would shoot for a selling price of around $1,000 or so over invoice.

    Car_man
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    LubDubLubDub Member Posts: 12
    You guys think this is a good deal?

    2011 black on black 535xi
    12k/yr lease, 3 year
    Premium package 1 and 2 and comfort access

    MSRP is ~61000
    Sell Price 55900

    2237 at signing
    786 per month inclusive of NJ taxes

    im about to pull the trigger on this since another dealer has offer that is for 820 per month, 57000 selling price and slightly higher $ at signing...

    cheers!
    jp
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    mikegtmikegt Member Posts: 3
    Hi Car Man...

    Can you please tell me the MF and the residual on the 2011 535xi Gran Turismo for 36 months / 12k miles?

    Also can you please tell me the MF and residual on the 2011 535i Gran Turismo for 36 months / 12k miles?

    Thanks,
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    thassthass Member Posts: 2
    Hi JP,
    i have to say this is a great deal! not knowing what the NJ taxes are, but probably higher than MD....
    would you want to disclose where you are getting it from?

    my deal is as follows, and i really would like the Prem. pack 2 as well!!

    Wow, now THAT'S a deal:).
    Can I ask where u got it?
    I am in the same process, but my deal is only:

    Nav
    Cold weather
    Parking distance control
    Backup camera

    For $660/month without tax
    Nothing down
    Only inception and tax!

    That premium package 2 would be nice!

    Thanks
    TH
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    mikegtmikegt Member Posts: 3
    edited August 2011
    All,

    For your reference: Got following lease deal:

    Residual Value: 58%
    MoneyFactor: 0.0019

    36k miles lease - $57,690 Sale price, MSRP $66,775.00, No down-payment

    (Cold Pkg, Convenience Pkg, Nav, Ipod/USB, Premium Black color, Rear Camera)

    Monthly payment before tax $710

    Good luck with your deals - It appears that BMW is giving dealers good incentives this month! I heard $3500 incentive in addition to Navigation incentive.
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    LubDubLubDub Member Posts: 12
    Th

    It was flemington BMW
    No one else could beat that price
    Im in a large practice and we usually use another dealer for our leased vehicles.
    I reached out to another dealer to strike a better deal with the potential for more business to come their way from my colleagues if things go right.

    Hence why it was such a competitive price.

    Jp
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    bellevue168bellevue168 Member Posts: 3
    edited August 2011
    To Carman and All,
    Hoping to get input on proposed lease by my local dealer for 535xDrive
    MSRP $71400
    (Premium 2, Convenience, Cold weather, M sport)
    Sale $67600
    36 month
    12K per year
    $1500 out of pocket at signing
    Monthly including tax $1060
    Limited dealerships in our area and new to leasing so hoping to get all of your help. Don't want to change my total out of pocket but how low should the monthly be?

    Any recommendations on what my bottom line for a fair monthly should be?
    Already appreciate finding this site and all the postings.
    Thanks!!!
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    mikegtmikegt Member Posts: 3
    edited August 2011
    Imho - Sale price seems high, it appears BMW dealers have a $1500+ holdback and some serious incentives from BMW this month for 2011 cars. I secured a $9k price reduction on MSRP for the same car without Premium 2 , 2 days ago in Chicago. Dealer said he could afford giving that since BMW kicked in some $3500 additionally ... so negotiate hard.

    Good luck.
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    bellevue168bellevue168 Member Posts: 3
    Thanks mikegt. Just read over the deal you got and congrats on the new car. Do you know if the incentives are different for the sedan vs. GT? Thanks again
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    I certainly can, mikegt. BMW Financial Services' August buy rate lease money factor and residual value for a 36 month lease of a 2011 535i Gran Turismo with 12,000 miles per year are .00190 and 58%, respectively for consumers who qualify for its top credit tier.

    The numbers for an otherwise identical lease of an '11 535xi Gran Turismo are .00190 and 58%.

    These money factors are .00030 lower for loyal customers.

    Just this month BMW introduced a $3,500 dealer cash incentive on '11 Gran Turismo models. I believe that this cash is compatible with the special lease program.

    Car_man
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    chadmandelchadmandel Member Posts: 11
    Carman, can you please provide the August MF and Residual for the 528i Sedan with 15K miles?

    Thank you.
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    beemer550beemer550 Member Posts: 2
    What is the MF and residual value In august for a 2011 550xi . First time BMW buyer, so no loyalty advantages.
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    1bmwguy1bmwguy Member Posts: 11
    edited August 2011
    I got a quote this week on a lease for a 2011 528. It has nav. and prem2. msrp is $51.725. 10k a year for 3 year. $4.000 due at signing, for $525.00 a month with tax. Do you think i can do better than that? That is with the loyalty program.
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    jms8090jms8090 Member Posts: 30
    Carman (or anyone in the know...),

    Can you confirm that there is a lower rate available for South Florida for a 2011 535i sedan? As far as I know, it's .00195 (or .00165 using loyalty). I've seen other numbers being used - such as .00175 and it's being called a "Top Tier" money factor. If so, I would imagine that the loyalty would also apply to it. Please confirm. Looking at 12k/36 lease. MSRP $58,125, selling price of $51,465 with 1k due at signing. Doc fee of $129, Dealer fee of $689. Using BMW USA credit/Nav credit as well. Payment of $711 per month with $725 acquistion, taxes (6%) built in the payments. Money factor is .0016 although I'm not sure about this as it looks like it should be .00165 with loyalty. Any info is appreciated.
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    c_manc_man Member Posts: 1
    I'm looking at a lease 36/mo 30k miles lease on a 2011 550 GT. It's pretty well loaded w/ features. Inc. cam pkg, convenience pkg, cold weather, premium sound, sport pkg, etc.
    Gross cost at 69025 - about 5k under sticker. Residual is 61%. Money factor .000175. (they said or 1.75% - but that math doesn't make sense to me).
    I'd be at $866 per month - only drive off is taxes, etc and 1st month. No money down toward value.
    Any opinions as to whether this is a good deal or not?
    Thanks!
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    isinghisingh Member Posts: 13
    Hi Carman. On bmwusa is a sample offer for a 535i GT 589/month + tax. It says 1730 option credit and 3500 dealer cash.

    Any idea whether the 589/month already takes into account 5200 in cap cost reduction, or is this possible additional discount on top of the 589/month payment.

    Appreciate your help.
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    cta3550cta3550 Member Posts: 1
    I am looking at the same car and deal. Any ideas?
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    tennis_rustennis_rus Member Posts: 15
    2011,535i,msrp $60850, negotiated to $55250
    lease 36/15k, negotiated to: about $999 a month with 0 down, out of pocket ($999 first month payment and about $1000 towards taxes,fees) $1999 total.
    top tier credit

    please let me know what you think.

    THANK YOU!
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    jkpateljkpatel Member Posts: 8
    I am also getting a 535i tomorrow MSRP $61327 for $3000 drive off, $679+tax/month, 12k/year for 36 months, last month payment on my MB E350 ($705) included. (S Cal).
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    I'd be happy to chadmandel. BMW Financial Services' August buy rate lease money factor and residual value for a 36 month lease of a 2011 528i Sedan with 15,000 miles per year are .00195 and 55%, respectively for consumers who qualify for its top credit tier.

    The money factor for loyal customers is .00030 lower.

    Car_man
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Welcome beemer550. BMW Financial Services' August buy rate lease money factor and residual value for a 36 month lease of a 2011 550xi Sedan for a non-returning customer with 15,000 miles per year are .00195 and 59%, respectively for consumers who qualify for its top credit tiers.

    Car_man
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    Prices Paid: Buying & Leasing Experiences Forum
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    CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi jms8090. The money factors that you mentioned, .00195 / .00165, are indeed correct.

    Car_man
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