[analogue]

The lease offers that are available on the BMWUSA website have all the information needed to get the residual and money factor each month, but doing the math gets old. So here is a simple tool you can use to get those values and find out how much your dealer is marking up your MF.

BMW Lease Offer Decoder

Instructions:

1) First, you need to copy a paragraph from the "Important Information" of the advertised lease offers.

Open this information either directly from the offer list:



or on the offer details page:



Then copy the text in the paragraph shown:



2) Open the BMW Lease Offer Decoder, paste the copied text, and click Decode.

The details for the lease offer will be shown including the MF, equivalent APR, and RV. It will also show monthly and total costs before taxes.

[ashmostro]

If this works (I haven't tested it), it's a game changer. Thanks for posting.

[Nai1ZuTe]

Originally Posted by ashmostro

If this works (I haven't tested it), it's a game changer. Thanks for posting.

It's certainly a nice tool but I wouldn't call it game changer... I thought these information is public anyway? This is basically a tailored calculator

[javapro]

Originally Posted by Nai1ZuTe

It's certainly a nice tool but I wouldn't call it game changer... I thought these information is public anyway? This is basically a tailored calculator

Yes, you kind of need to know which numbers to look at from the BMW lease offer and reverse engineer the MF and RV. Edmunds forum is still the best source for this info.

[Blastphemy]

For BMW's current offer on its website, Lease Decoder returns the following:

Money Factor – 0.00111
Equivalent APR – 2.66%
Residual – 51%
Monthly Payment – $1,079
Term – 36 months
Miles – 30,000 (10K annually)
MSRP – $112,495
Adjusted Cap Cost – $90,320
Residual Value – $57,372
Total Cost – $38,844
Total Depreciation – $32,948
Total Rent – $5,896
Monthly Depreciation – $915
Monthly Rent – $164

I can't figure out how Lease Decoder calculated the Total Rent (above) from the Important Information paragraph (below). Can anyone explain?

The reason I want to understand how Lease Decoder calculated the Total Rent is because that number is key to calculating the money factor:

.........5,896
---------------------- = 0.00111
(90,320 + 57,372) x 36

The build I'm looking at is a different MSRP, different amount due at signing, and different dealer contribution. So I'd like to be able to walk into the dealership already knowing the numbers and where they came from.

"Important Information:

$1,079 PER MONTH FOR 36 MONTHS
$9,279 DUE AT SIGNING
SUGGESTED DEALER CONTRIBUTION OF $5,000

Monthly lease payments of $1,079 per month for 36 months is based on an adjusted capitalized cost of $90,320 (MSRP of $112,495, including destination and handling fee of $995, less $7,275 capitalized cost reduction, $0 security deposit, and suggested dealer contribution of $5,000 and $9,900 Lease Credit). Actual MSRP and dealer contribution may vary and could affect your monthly lease payment. Cash due at signing includes $7,275 capitalized cost reduction, $1,079 first month's payment, $925 acquisition fee and $0 security deposit. Lessee responsible for insurance during the lease term, excess wear and tear as defined in the lease contract, $0.30/mile over 30,000 miles, plus disposition fee of up to $495 (not to exceed an amount permissible by law) at lease end. Not all customers will qualify for security deposit waiver. Tax, title, license, registration and dealer fees are additional fees due at signing. Advertised payment does not include applicable taxes. Purchase option price at lease end is $57,372, plus the purchase option fee disclosed in the lease contract. Additional tax, title, and government fees may also apply."

[Blastphemy]

Wow - I feel dumb for not figuring out that simple Total Rent calculation... it's just Total Cost – Total Depreciation. So $38,844 – $32,948 = $5,896.

So then the question is... how did Lease Decoder calculate Total Depreciation and Total Cost?

Those are also simple: Adjusted Cap Cost – Residual Value = Total Depreciation. So $90,320 – $57,372 = $32,948. And Total Depreciation + Total Rent = Total Cost. So $32,948 + $5,896 = $38,844.

But we're actually caught in a circular calculation, because while we know Adjusted Cap Cost ($90,320) and Residual Value ($57,372) form the Important Information paragraph, and we can then calculate the Total Depreciation ($32,948) from that, the Total Rent is unknown without the Total Cost, and the Total Cost is unknown without the Total Rent!

The good news is that BMW also gives us the key to Total Cost in the Important Information paragraph: monthly payment of $1,079. Monthly Payment x Lease Term = Total Cost. So $1,079 x 36 = $38,844.

So now, if we take the preliminary deal I was offered by BMW for my specific iX M60 build, I can figure out the numbers:

Adjusted Cap Cost of $102,841.50 minus Residual Value of $58,958.55 equals Total Depreciation of $43,882.95.
Total Cost (before sales tax) is $1,552.50 x 36 months which equals $55,890.
Total Cost of $55,890 minus Total Depreciation of $43,882.95 equals Total Rent (i.e., lease charge) of $12,007.05

But, sadly, if I plug those numbers into the Money Factor calculation...

............12,007.05
----------------------------- = 0.00206
(102,841.50 + 58,958.55) x 36

...I don't get the 0.00115 money factor that was shown at the dealership. My guess is sales tax is somehow causing me problems that are preventing me from landing at that Total Rent of $6,698.52 which would get me to 0.00115. So two steps forward, one step back!

[analogue]

For reference, you can see how the decoder is plucking numbers out of the offer details and calculating values as I kept this simple javascript on the page. View source or read it here:

https://github.com/itsanalogue/bmwle...ndex.html#L143


If you are not getting the correct MF for your specific deal, then I suspect you have additional fees being amortized into your monthly payments above depreciation and rent. You'll have to figure out where they are adding costs since the published BMW offer only accounts for depreciation and rent, which for your numbers would land a $1399/mo payment before taxes.

So find out what is causing the extra $153.50/mo. It might be government fees, they could be adding inflated dealer fees, or <gasp> scotchguard for your seats .

[Blastphemy]

Originally Posted by analogue

If you are not getting the correct MF for your specific deal, then I suspect you have additional fees being amortized into your monthly payments above depreciation and rent. You'll have to figure out where they are adding costs since the published BMW offer only accounts for depreciation and rent, which for your numbers would land a $1399/mo payment before taxes.

So find out what is causing the extra $153.50/mo. It might be government fees, they could be adding inflated dealer fees, or <gasp> scotchguard for your seats .

There were nearly $3,000 in additional costs and fees (acquisition fee, license fee, registration fee, sales tax on cap cost reduction, tire fee, document processing fee, etc.)

This lease decoder helped me understand and get the deal I wanted, so thank you very much for this (and for your help decoding the decoder)!

$1,500 down, MF 0.00111, 51% residual, 9.5% sales taxes, MSRP of $114,795, and a monthly payment of $1,541.49. Not the absolute best deal reported on these forums, but $150+ less per month than what we were originally quoted when we ordered our M60. That's a $5,400+ savings!