Understanding Leasing Fine Print

joedadd

I plan on leasing a car because I prefer a lower monthly payment and will be able to deduct the payments as I frequently drive for business. The fine print on this model (https://www.bmwusa.com/special-offers/lease.2018-330i-xDrive-Sedan.bmwdelawarevalley.html) Monthly lease payments of $409 per month for 36 months is based on an adjusted capitalized cost of $38,121 (MSRP of $45,545, including destination and handling fee of $995, less $3,000 customer down, $0 security deposit and suggested dealer contribution of $1,424 and $3,000 Lease Credit).

Is the dealer contribution just a negotiated price? If so, I assume it can be much better, depending on how badly the dealer wants to move the inventory. Any other suggestions for a first time lessor?

kyfdx

joedadd said:

I plan on leasing a car because I prefer a lower monthly payment and will be able to deduct the payments as I frequently drive for business. The fine print on this model (https://www.bmwusa.com/special-offers/lease.2018-330i-xDrive-Sedan.bmwdelawarevalley.html) Monthly lease payments of $409 per month for 36 months is based on an adjusted capitalized cost of $38,121 (MSRP of $45,545, including destination and handling fee of $995, less $3,000 customer down, $0 security deposit and suggested dealer contribution of $1,424 and $3,000 Lease Credit).

Is the dealer contribution just a negotiated price? If so, I assume it can be much better, depending on how badly the dealer wants to move the inventory. Any other suggestions for a first time lessor?

Correct, dealer contribution is the discount from MSRP, used in this calculation scenario.

You should shoot for a discount of 7%+ from MSRP, before deducting incentives.