[BMW!]

Originally Posted by Streetfish

actually it seems you dont know what a rent charge is either. the rent portion is not the depreciation of the car, but rather the total of interest portion of your payments, which is based on the depreciated amount. a monthly lease payment is part depreciation cost and part interest (rent). the rent cost is determined by the money factor and residual. depreciation portion is determined by residual

thanks for clearing up

[BMW!]

Originally Posted by Nick Nazareno

you get the good rate by leasing at at time when the money factor is low, the residual percentage is high, and you negotiate the cap cost starting from the invoice price + $500.. that's it. there's no secret.

if you live in an area of the country where the particular vehicle is popular, you will have to pay much more than $500 over invoice. if you live in an area where the vehicle is not as popular, you can get a better deal.

also, when you compare deals you need to find out if the person had a trade in. sometime people get a good deal on the new car but get hosed on the trade in. for example, i got the dealer to agree to $700 over invoice for my E90 328 but they were going to hose me on my trade in and i had to go with $1400 over invoice to so they would take my old car straight up ('02 wrx with 86k miles)

lastly, some people put down a big cap cost reduction (bad idea) in order to get a low monthly payment

if you really want to compare (bad idea) you need to find out the trade in details, the money factor, the residual, mileage limit and the cap cost

lastly, you should do your homework next time. if you don't even know the basic terms or the math behind your lease payment you might as well walk into the dealership with a sign saying "i am free money". how do you expect to get a good deal if you haven't done any of the necessary groundwork to negotiate effectively

I think you are 100% correct... I thought I did my homework So base on your knowledge... do you think I got a good deal? I think it's an average deal.

[nicknaz]

Originally Posted by BMW!

I think you are 100% correct... I thought I did my homework So base on your knowledge... do you think I got a good deal? I think it's an average deal.

yea i think its a fantastic deal, since you are now driving the car you wanted!

you should think that way too. its a huge waste of time and money to wish you got another car instead.

[John 070]

This thread reminds me of when we were in grad school and learned about that couple who paid more than the refrigerator was worth in the famous NYS rent to own case. We would never in real life pay fees we don't understand, yet when it comes to a car, all that many seem to care about is the monthly payment, not how they arrived at it. It's like get the monthly payment, then the car, then wonder what exactly is on the paperwork.

[CALIF65GM]

Originally Posted by Streetfish

actually it seems you dont know what a rent charge is either. the rent portion is not the depreciation of the car, but rather the total of interest portion of your payments, which is based on the depreciated amount. a monthly lease payment is part depreciation cost and part interest (rent). the rent cost is determined by the money factor and residual. depreciation portion is determined by residual

Yes sorry I stand corrected. I totally flaked on it.