12-21-2021, 03:25 PM | #1 |
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On a lease...how is the destination fee and acquisition cost treated?
Let's assume 95k car (not including destination fee) and 50% residual after 3 years.
There is then a $925 destination fee and a $875 acquisition fee....or $1800 total. Do I pay 100% of the $1800 fees....or only the 50% residualized cost on those (or $900)?
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12-21-2021, 04:02 PM | #2 |
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You pay the entire amount. The car had to be shipped, and you took possession of it.
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12-21-2021, 08:25 PM | #3 |
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You can residualize it or paid up front. I prefer to residualize everything since gap insurance doesn't give you back anything you pre-paid on a lease if the car is stolen or totaled. However, I've done it both ways in the past.
edit - I'm an idiot and this post is an example of my idiocy. I meant "roll it in", not "residualize" it.
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12-21-2021, 10:07 PM | #4 |
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Your 2 replies say the opposite thing......
Residualizing that amount means you don't pay the full amount but only the 50% you use (again, assuming a 50% residual at lease end).
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12-21-2021, 10:09 PM | #5 |
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Residual is based on the MSRP, which I believe includes destination.
Acquisition/disposal is 100% on you. You can capitalize any fees you want and roll them into your payment, but you're still paying 100% of them in the end.
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12-22-2021, 12:04 AM | #6 |
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Ok yep that makes more sense (that the destination is included in MSRP).
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12-22-2021, 01:42 AM | #7 | |||
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Quote:
Quote:
Quote:
I was browsing shopbmw.com and I was obsessing about port installed options and residualizing add-ons was just stuck in by brain. However, I do like to roll it all in, cap cost taxes, bank fees, doc fees, acquisition etc because if I pay it as a drive off, then that is still "lost" if the car is stolen or totaled. If I roll it in, I'm paying it off slowly, and if the car is a loss, GAP covers whatever I owe outside of what it's worth and I basically save whatever I had not paid off yet.
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