What am I missing from my 2014 X5 lease calculation?

kkcheung · June 2014

Hi there,

I am looking into leasing a 2014 X5 3.0d. Here are the numbers I used for lease calculation:

Vehicle price: $65,350
Sales tax: 9.25% (Northern California)
Title/registration/doc fee/etc: $651
Down payment: $3,000
36 months lease/15K
Lease residual $37,903 (56% according to dealer)
Money Factor: 0.0017% (according to dealer)

My own calculation using Edmunds online calculator comes out to be $952 per month including tax. However, dealer's estimate comes out to be around $1,011. I asked the dealer but he couldn't explain the discrepancy.

Any idea what I am missing from the calculation?

Thanks in advance.

Kenny

kyfdx · June 2014

What is the MSRP? Can't do a calculation without that number.

kkcheung · June 2014

$65,350 is the MSRP.

Thanks.

kyfdx · June 2014

I assume you are paying MSRP for the vehicle? If I allocate the entire $3000 for a CAP cost reduction, then the payment with tax included is $964/mo. That assumes you pay all of the other fees upfront, in addition to the $3000. If the $3000 is your total amount due at signing, and the 1st payment and acquisition fee come out of there, then that would add $50-$60/mo. to the payment..

I know the new X5 is popular, but this is a terrible deal. Somewhere in CA, you should be able to get $1000 off MSRP and the base money factor (which is .0013, not .0017).

kkcheung · June 2014

Thanks for the clarification. It turned out I have made a mistake and your calculation is correct. $3,000 is total due at signing, not just the down payment. Also, you are right that MF should be 0.0013. Given that, $1,011 is correct. Now I am working on a deal with the dealer, knowing that I will not be paying MSRP for it.

Thanks for your help!

What am I missing from my 2014 X5 lease calculation?

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