[Joonsup]

I'm confused so I thought I'd run it by you guys. I was reading information on the bmwusa website where you can estimate your payment and I was reading the fine print and here's what it said on one part.

" If your estimate is based on a vehicle configured in the 'Build Your Own' section of BMWUSA.com, the MSRP will reflect the options you selected. The amount financed includes any BMW center installed accessories. Accessories are not added to the residual value of the vehicle at the end of a Lease"

So let's say the base MSRP is 41k and I add on 10K worth of options and the total comes out to 51k. I know the residual value for 15k miles is 58%. When I do the calculations to find out the residual value, do I take 58% of 51K or do I take 58% of 41K?

[airborn]

I believe it's a dealer option (navi, sport) vs dealer accessory (floor mats).

Someone correct me if I'm wrong here.. it's my first post.

[Joonsup]

Originally Posted by airborn

I believe it's a dealer option (navi, sport) vs dealer accessory (floor mats).

Someone correct me if I'm wrong here.. it's my first post.

ahhh that makes sense. i think you are correct. thanks.

[phantom330]

well it will increase the MSRP of the vehicle you build, but BMWFS only will let you residualize certain options, and the adder to the MSRP is not the full cost of the option, so say you get a CD changer, the cost is 500 or so, but you can only add $300 to the MSRP for that option, so you can't use the total MSRP to calculate the residual if you're adding options if that makes sense.

[Joonsup]

Originally Posted by phantom330

well it will increase the MSRP of the vehicle you build, but BMWFS only will let you residualize certain options, and the adder to the MSRP is not the full cost of the option, so say you get a CD changer, the cost is 500 or so, but you can only add $300 to the MSRP for that option, so you can't use the total MSRP to calculate the residual if you're adding options if that makes sense.

That makes perfect sense. And I appreciate the information. The options I am getting are the options listed on the bmwusa site, so I would think that the amounts of those options would be stated as the full amount in calculating the residual value, no?

Does anyone know how they calculate the tax for leasing in California? I wonder if they tax whatever the monthly comes out to be or if they tax the negotiated price of the vehicle and roll that into the monthly payments. Anyone?

[phantom330]

Originally Posted by joonsup

That makes perfect sense. And I appreciate the information. The options I am getting are the options listed on the bmwusa site, so I would think that the amounts of those options would be stated as the full amount in calculating the residual value, no?

Does anyone know how they calculate the tax for leasing in California? I wonder if they tax whatever the monthly comes out to be or if they tax the negotiated price of the vehicle and roll that into the monthly payments. Anyone?

There are certain options you can residualize and others you can't. Things like an Ipod adaptor and smaller things like that can't be residualized.

Tax in CA is collected monthly on your base payment x rate, which depending on where you're located is going to be between 7.25-8.5%. You'll also be taxed on any cap cost reduction you put down.

[Joonsup]

Originally Posted by phantom330

There are certain options you can residualize and others you can't. Things like an Ipod adaptor and smaller things like that can't be residualized.

Tax in CA is collected monthly on your base payment x rate, which depending on where you're located is going to be between 7.25-8.5%. You'll also be taxed on any cap cost reduction you put down.

Ahhh so you get taxed on your down payment then. That sucks. I wonder why they do that and whether all those formulas for lease calculate that in