[vadk]

Hello,

Please help me to figure our lease amounts on my new X3. I have a feeling that they do not match. This is a first time I lease a car.

MSRP was $44,945 including destination charge. I negotiated that to $42,345.
My trade-in was $7,500. And they gave me lease rebate $2,500.
Also I paid $5300 down ($300 is first month payment).

I got monthly payments $300 (for 36 months).

When they calculated my monthly payments they took Gross Capitalization Cost as $45,352.50. That looks like sum from lease agreement (including acq fee, dealer fee, taxes).

But on the amount due I already paid for acq fee and dealer fee. IMO they included those amounts twice.

Plus I do not understand why they included tax $1,123.48 to the Gross Capitalization Cost if tax already paid for Gross Cap Reduction and separately included into monthly payments.

Please advise!

[west1]

$1123.48 divided by 6% = $18,724.67. this is your depreciation, the amount of car you're "buying" in your lease.

add $18,724.67 to contractual residual value $26,517.55 = $45,242.22 which is just about your Gross Capitalized Cost (agreed purchase price of vehicle).

that's a lot of money to pay out for a lease where you own nothing in the end. you basically gave them $12,800 upfront for the pleasure of driving their car for 3 years.

IMO, it does look like you're paying tax on the entire scheduled depreciation AND in your monthly lease cost (depreciation + rental cost + tax).

But, Florida may have a law that states that the vehicle must be taxed at full rate before a lease transaction so the state collects its "fair share."

Your total tax payments in your lease are $706.68 ($19.63X36 mos).

I'd speak with the dealer to get a full detailed explanation of the charges.

[ba ba boosh]

I would look into MSD (Multiple Security Deposits) or Refundable Security Deposit as it says on your lease sheet., leaving a $12k down payment on a car you don't even own is ludicrous. Say in the worst case scenario you total your car during the lease. You don't get that $12k back, it's gone, hell even when you return your lease after 3 years, you don't get that $12k back. I would private sell your old vehicle, and only put the minimum amount down payment on the lease.

[double_j]

I hope you didn't sign anything yet because I do think you're getting the shaft and it's worth making the dealer explain the numbers to you (it's very convenient for them when their forms don't have to agree with each other).

Based on what I've found online, Florida only taxes the monthly payment, there should be no amount included in the capitalized cost, except for the tax on your initial pay down of the capitalized amount (only the amounts paid in cash).

I'm by no means an expert but my simple math follows. It might not be totally accurate, but it definitely says that you need the dealer to walk you through it. Literally make then show you how they calculated Every. Single. Number. since it's impossible to back into the numbers they're showing.

Vehicle cost including all fees but excluding tax per the dealer schedule: $44,445
Residual value: ($26,517)
Total depreciation in lease: ~$18000

Trade in value: ($7,500)
Rebate value: ($2,500)
Cash down (excluding first month): ($5000)
Total depreciation in lease less paydown: $3,000

Tax due on initial cash buy-down ($5,000 * 6%): $300
Total amount to be amortized via lease payment: $3,300

Compare that to the $6,351 on the dealer documents in your original post, and it looks like they're overcharging you by about $3,000 in the amortized cost. If I had to guess, it's coming from the double count of the fees you mentioned and of the $1,123 in upfront taxes they've included in cap cost. It also looks like they're double charging you for the licensing fees, for tire disposal, etc. Basically, their documents are a mess.

Keep in mind that changes to the depreciation numbers should also trigger a reduction in the rental surcharge and the resulting tax amount embedded in the payment. By my guesswork, you're paying something close to $90 too much per month.